Why is HBAR an EXPLOSIVE Made in USA Altcoin?

Made in the USA coins are still a hot topic even with uncertain market conditions. They are an almost $400 billion sector within the industry. That makes it one of the largest and most important.

One of these projects is getting tons of good press and making big moves. Yet, it seems like only the US market is even watching what they do. Who are they? Hedera Hashgraph. And today, we look at one huge deal that gives them instant relevance. Even for non-believers. Let’s discover more about HBAR.

How Hedera Is Different Than Other Chains

First, let’s review. Hedera Hashgraph has 2 unique features compared to other projects.

• Private, Permissioned

The first of these differences is that Hedera is not a fully public chain. They are a private permissioned chain. Only certified partners can run a validator. And validator names are some of the who’s who of American Big Tech, like Google or IBM. They and important projects from crypto like BitGo and Chainlink are all on the Governing Council.

• Hashgraph Design

The other big difference is that Hedera is not a blockchain. It does have distributed network features like a blockchain. Yet it settles transactions and does consensus differently. Hedera doesn’t use proof of work or proof of stake to reach consensus. Their hashgraph is like if many people are in a reception room together and everyone is gossiping about someone else. Eventually, the truth comes out, and that’s taken as consensus.

The technical name for this is aBFT. Asynchronous Byzantine Fault Tolerance. And BFT is something all good blockchains and distributed ledgers have. It allows that even those who are trying to spread false rumors to the crowd will be drowned out by the truth. Now that we understand these main differences, onto one of the biggest partnerships we can think of for ANY chain to have. The US Federal Government.

The FedNow Deal

That’s right. Hedera has a deal for payments with the US Government. Now, even though we aren’t the biggest fans of the US Government here, they are a good customer for a business. Plus, everyone from XRP to Algorand is trying to get the Feds to work with them while they are already working with Hedera.

The deal has to do with the Fed’s FedNow payment system. I’m sure many of you are hearing of this for the first time, so a brief intro. Started in July 2023, FedNow is the Federal Reserve’s instant payment system. And it’s the instant part that matters here. People with accounts in member banks can send money between those accounts in seconds, 24/7, including weekends.

This is unlike the ACH system, which is still much larger, and settles transactions in 3-5 days, or SEPA, which settles transactions the next day. FedNow can finalize transactions immediately. And we know how valuable that is in crypto, with not being able to reverse the transaction after finality. The same applies to FedNow transactions.

Aside from instant 24/7 payments, FedNow is also better encrypted than the ACH system and with low flat fees of 4.5c per transaction. Hedera started working with FedNow back in 2023. And that was only the beginning. It started with the integration of Dropp for micropayments. Dropp is built on Hedera. The Fed picked Hedera for its:

• Speed at almost instant micropayments.
• Flexible payments to take USD, USDC, or even HBAR for payments.
• Credibility in the market due to big tech partners as validators and its use in other projects, like by Kia and Hyundai, for carbon tracking.

All these factors put Hedera a step or two ahead of the other chains vying for US Government business.

Walrus Midroll

Walrus Protocol has the fastest solution for data storage on the market today. It’s from the team behind Sui. It’s a potential Filecoin killer because it does some things Filecoin can’t.

One thing is that it’s so resilient that even with only a few nodes operating, your data availability won’t be affected. Decentralized data storage on Walrus is solving a big problem that many blockchains suffer from.  Poor coordination affects you more than you realize.

Walrus Protocol has some big advantages with Sui and the Move programming language over other decentralized data providers. The problem, as they call it, is coordination. It’s making sure that if a protocol does 3 things, those things work seamlessly with each other.  Also, the protocol needs to work with other projects in the ecosystem and with the blockchain infrastructure, like validators. 

Listen to Sui co-founder Adeniyi Abiodun describe the problem and how Walrus is part of the solution. Walrus is finishing up its testnet. The mainnet and $WAL token launch are coming soon.

And to stay updated on testnet progress and other news, make sure to follow the Walrus Protocol’s X account and other socials.

Why FedNow is Such a Big Deal

As I said already, the US Government is a great business customer. That alone makes it a big deal. Plus, if you follow Brad Garlinghouse or anyone affiliated with XRP or the XRP Army, you’d think every government transaction is going through the XRP ledger, XRPL.  Or nonsense like this.  Well, it’s not.

And other than working on CBDCs around the world, there has been no evidence that XRP is working with the US Government in any way. That is, until XRP issued its RLUSD stablecoin. Hedera is providing a great example of the use of distributed ledger tech in a use case we can understand. Payments to and from the government.

The Feds have one goal only. To test drive blockchain tech to see if it can really do fast, instant, and cheap payments. And it can. Thanks to Hedera’s great work, FedNow has a sandbox for experimenting with programmable money and asset tracking. That’s all, while staying faithful to its traditional bank members. And like it or not, the Fed has to stay faithful to them.

This integration may seem like old news, but it’s not. Yes, it started back in 2023 with Dropp. Now, Hedera is a credible partner for FedNow to expand into other roles aside from micropayments. And that part of the partnership is only just beginning.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.