Being a decentralised platform in the world of cryptocurrency exchange, Harmony is taking steps to attain a notable balance between scalability and decentralisation.

It is one of the blockchains which aims at 1000 times lower transaction fees and a 2-second finality time, even being developed on Ethereum. The platform wants to build an ecosystem which has a trustless economy and is more decentralised in nature.

Launched as a start-up in 2018, Harmony attracted the interest of many prominent investors such as Hong Kong’s LemniscapVC, Silicon Valley’s Con1sensus Capital and others. The decentralised platforms by focusing on random state-sharding (which builds blocks instantly) wish to facilitate DApps development with it.

Harmony supports the creation of marketplaces for non-fungible and fungible tokens and also aims to work on data sharing. The ecosystem which supports the adoption between the markets primarily focusing on ad exchanges, decentralised marketplaces, supply chain tracking, data sharing, credit rating systems and gaming, etc., can be accessed by the investors. There are some objectives which the platform is working on. They are as follows:

  • Taken care of by its consensus protocol i.e., Fast Byzantine Fault Tolerance Protocol (FBFT), Harmony intends to offer energy-efficient high transaction speeds.
  • Without compromising any of its other features, the platform focuses on producing higher transactions as compared to other projects developed on Ethereum.
  • After understanding what Harmony is all about, let’s take a look at it’s working.

    How does Harmony (ONE) operate?

    As a response to Ziliqa’s Practical BFT, Harmony takes a higher approach and established the solution called Fast Byzantine Fault Tolerance (FBFT) as its consensus protocol.

    Since the platform doesn’t use the same old consensus mechanisms like Proof-of-Stake or Proof-of-Work adopted by other blockchains, this network utilises random sharding and splits the database into small portions known as Shards to reduce the delay of transactions. This step enhances the transaction speed, preventing congestion of the networks.

    The platform also has a native governance token referred to as ONE. Here is a brief guide about it mentioned below:

    ONE Token

    This token is responsible for the successful running of the Harmony ecosystem as it enables participation in it and behaves as the payment vehicle for numerous activities on the network. This is done in the following ways:

  • Used with harmony, the ONE token is utilised as a stake in the consensus model. The holders of the coin can gain block rewards and are incentivised to retain the system’s health.
  • A myriad of fees such as storage fees, transactions or gas fees can be paid through the tokens.
  • By using the ONE tokens, the holders of the coin are granted voting rights as a part of Harmony’s governance system.
  • Harmony is one of the platforms which offers quite unique benefits. Besides its team comprising of people from ivy tech companies like Amazon, Google, Microsoft, etc., it has also joined hands with numerous hardware wallets for storage offline like SafePal and Ledger. Let’s explore the things that Harmony offers to its users.

    Features of Harmony

    Harmony as a blockchain supports multi-purpose smart contracts and offers its users everything from consistently developing the DeFi ecosystem to NFT projects. Furthermore, it also provides combinations of both aspects in the form of the DeFiKingdoms project.

    Apart from this, the other benefits of the blockchain are as follows:

  • 1000 validators.
  • 4 different shards.
  • Safety and decentralisation.
  • Every two seconds a new block appears.
  • Connections with other blockchain platforms.
  • To wrap it up, the Harmony network provides smooth, fast operation and economical functioning. Its strategic decisions in terms of attracting new users and alliances can make its future promising. Hence, if you are looking to invest in the coin, you can purchase it directly from one of the best cryptocurrency wallets in India i.e., WazirX.

    Author's Bio: 

    Rea Setia is an passionate writer. She loves to share business tips and her experience about industry.