Harmony(ONE) Explained

Harmony (One) explained

Harmony (ONE) is a blockchain-based platform that aims to achieve the perfect balance between scalability and decentralization. The project was launched in 2019 as part of the initial exchange offering (IEO) on the Binance Launchpad, with the backing of multiple investors such as Consensus Capital and Lemniscap VC who helped raise $18 million prior to the IEO.

Harmony promises access to an ecosystem that will support its adoption across various markets, with a focus on data sharing, decentralized marketplaces for fungible and non-fungible tokens (NFTs), supply chain tracking, ad exchanges, credit rating systems, and gaming. The platform also aims to deliver high throughput at low latency and fees. Combined, Harmony is designed to establish the foundation of future decentralized, trustless economies.

The way Harmony provides security, scalability, and decentralization is through deep sharding – a type of database partitioning that separates large databases into smaller, faster, more easily managed parts. The Harmony sharding splits the network into four sections that distribute the network’s workload. Each shard separately focuses on block creation, validation, transactions, and staking. This is a new version of the proof-of-stake (PoS) consensus mechanism, called effective proof-of-stake (EPoS).

For example, a validator doesn’t need to maintain a full copy of the entire blockchain’s transaction history and those validators are randomly assigned to shards to prevent hostile shard takeovers. After every Epoch, validators will likely move to a new shard, and leaders rotate.

Harmony currently has a limit of 250 validator slots per shard. In the future, the number of shards and validators can increase to meet network demand. Shard 0 is the Beacon Chain and acts as an information relay between shards 1, 2, and 3. Currently, most activity takes place on the Beacon Chain, but eventually, cross-shard communication will allow for smart contracts to operate across shards by transmitting messages between nodes directly.

The ONE token

At the heart of the Harmony project is the ONE token. It keeps the ecosystem running and enables participation from the wider community across a number of activities. As the native utility token, ONE is used to pay gas fees related to transactions that take place on the network. It is also used for staking, which keeps the system healthy. ONE token enables participants to earn block rewards. Finally, the ONE token also grants voting rights as part of the platform’s decentralized governance system.

The token has a maximum supply of 12,600,000,000. As of June 2022, the circulating supply on the market is about 12.2 billion ONE tokens. Out of the total supply, 22.4% is dedicated to the initial seed sale. Another 12.5% is set aside for the IEO. The Harmony founding team and developers received 16.9% of the total supply. About 26.4% of ONE tokens are dedicated to protocol development, while another 21.8% are directed towards ecosystem development. To trade ONE token today, head over to AAX Exchange.

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