What Is Harmony Coin & How Does It Work?
Harmony (ONE), a decentralized blockchain platform, was launched in May 2019 as part of Binance Launchpad's initial exchange offering (IEO). The Harmony blockchain offers tremendous throughput while keeping latency and expenses to a minimum.
The blockchain network has its own native token, the Harmony (ONE) crypto token. Before answering more on what is Harmony coin, let us take a look at how the Harmony blockchain works.
Connecting Your Harmony Blockchain Address To ZenLedger For Your Crypto Tax Forms
- To import your Harmony Blockchain transactions into ZenLedger for your crypto tax forms, all we need is your public address.
- Select the proper blockchain or wallet from the dropdown list.
- Paste your address into the address field in ZenLedger.
- Select if the wallet is based in the USA or not.
- Then hit ADD COIN button
How Does Harmony Blockchain Work?
To begin with, the Harmony blockchain enhances scalability and transaction and block creation through the use of random state sharding. But what exactly is random state sharding? To understand that, we need to understand what sharding is.
Sharding has been one of the ways used by blockchain developers to improve the transaction speeds of blockchain-based systems. In a nutshell, the notion is based on a method for improving database efficiency that is already in use.
To minimize latency, random state sharding allows the network to partition the database into smaller portions called shards. The sharding method is based on a distributed randomization generator that employs an adaptive proof-of-stake (PoS) consensus mechanism.
This combination allows for:
- Simple and straightforward verification
Furthermore, sharding enables relatively close transactions while preventing network congestion.
What Is Harmony Coin?
Harmony blockchain functions as a proof of stake (PoS) method for its governance token, Harmony ONE crypto. The ONE token's unique validation mechanisms are one of the main reasons for its broad popularity.
The number of nodes that are verified is determined by the number of tokens you stake. As a result, validators with larger stakes operate more nodes than validators with lower stakes. On the Harmony platform, there are now 1,000 active nodes.
How To Buy Harmony (ONE) Crypto?
Thinking of buying Harmony ONE crypto tokens? Here are four simple steps to buy Harmony’s native token.
- Short-list Exchanges Supporting ONE
Consider the payment gateway, security, and transaction fees of the exchange that supports ONE. As a newbie, you will not need a large number of features, and you may easily modify exchanges later.
- Trading Platform
- Go to the exchange's official website to set up an account.
- Click "sign up" to get to the account creation page, where you may fill out your personal details, such as your name, email ID, and address proof, among other things.
- Fund Your Account
Next, you need to fund your account. You can do so using either a debit card and credit card, or transfer via bank transfer. Alternatively, you can also use Bitcoin from a crypto wallet.
- Buy Harmony ONE Crypto
Now that you have funded your account on the trading platform, simply enter the amount worth which you want to purchase Harmony ONE crypto. Finally, click “buy”.
The Bottom Line: Why Choose Harmony (ONE) Crypto?
The Harmony ONE Crypto has been gaining popularity because it addresses the basic problems of blockchains:
- Cross-chain capabilities
Harmony's cross-chain architecture allows all decentralized network networks to operate in a trustless environment. Cross-chain interactions are more than just the transfer of funds via atomic exchanges with hash time-locked agreements; the ability to commit then verify calculations and states across open heterogeneous networks is genuinely remarkable.
- Energy efficiency and cheaper gas prices
Harmony distinguishes itself from other networks due to its design and proof-of-stake consensus process, which allows it to execute blocks in under two seconds.
Because of its high TPS and use of proof-of-stake verification, Harmony's network rarely becomes congested. As a result, there are no huge gas fees on Harmony, which are merely a fragment of a cent each purchase.
- Has a lot of room for nonfungible coins (NFTs)
Harmony has joined the array of cryptocurrency alternatives vying for a lower-fee NFT marketplace.
The network's cross-chain functionalities bring up new opportunities for NFTs, which are cryptographically secure art, video, and audio assets that can be sent through a blockchain network.
All, in all, the Harmony blockchain was built with the goal of achieving a pleasing level of balance between decentralization and scalability, and so far it has been doing a great job!