What is Harmony ONE coin? We first need to explore the Harmony blockchain and its characteristics.
Harmony is an Effective Proof of Stake (EPoS) blockchain founded in 2018 by Stephen Tse and launched in 2019. Like most post-ETHereum networks, it claims to solve the blockchain trilemma of decentralization, scalability, and security. Harmony's answer to the problem is sharding and its Effective Proof of Stake consensus mechanism.
Another key Harmony platform characteristic is its Cross-Chain Finance model. The blockchain offers bridging services between BNB Smart Chain (BNB), ETHereum (ETH), Bitcoin (BTC), and other networks.
What is Sharding?
To provide security, scalability and decentralization, the Harmony blockchain performs sharding. Essentially, the network is split into four sections that work in harmony (no pun intended) with one another. Users can choose the shard they want, which reduces and streamlines workload. Validation, transactions, block creation, and staking are all done separately and independently on each shard.
Some benefits of sharding would include a more efficient network, as well as less unwanted data stored. A validator doesn't need to maintain a full copy of the entire blockchain's transaction history. Additionally, validators are randomly assigned to shards to prevent hostile shard takeovers.
What is Effective Proof of Stake (EPoS)?
Effective Proof of Stake (EPoS) is similar to the standard Proof of Stake (PoS) validator and delegator model. Validators stake ONE (Harmony's native token) to run a node and process transactions through an election process. Delegators stake their ONE behind a validator in return for a proportion of future block rewards and transaction fees. Once elected and assigned a shard, the validator creates blocks and shares its rewards with delegators.
On the other hand, EPoS is different in their reward distribution system. Most PoS systems consolidate rewards and power behind a small number of validators. The more you stake, the more you earn and validate. In contrast, EPoS reduces rewards and penalizes validators who stake too much in a single node. Nodes with smaller stakes actually receive more favourable rewards in relation to their size, encouraging large validators to decentralize.
ONE
What is Harmony ONE coin? It is the blockchain’s native token. Some of its uses and functions are paying network transaction fees, staking as a delegator or validator to earn block rewards and taking part in Harmony’s open governance mechanism. To incentivise validators, Harmony provides a consistent reward of 441 million ONE per year.
Interested users can buy ONE on cryptocurrency exchanges such as Binance, or trade for ONE on various other exchanges as well. As mentioned earlier, users can stake ONE on the Harmony blockchain. ONE can be stored in wallets that are EVM-compatible such as MetaMask.
In Conclusion
What is Harmony ONE coin? The ONE token is a native token in the Harmony blockchain, which is a promising blockchain that practises EPoS and can possibly grow in the future due to its many benefits.
