What is Holochain, Holo and the HOT Token?

HOT Token

Holochain offers the fundamental technology needed for connections between people while giving them control over the information they exchange. As a result, Holo is building a platform that will connect users of Holochain to the mainstream internet. Furthermore, Holochain is gaining popularity as more Holochain applications (hApps) are adopted, giving developers a productive and less expensive option than blockchains. Furthermore, this was accomplished without the use of conventional consensus techniques, with much reduced initial and ongoing costs, and with immediate transaction finality. The distributed hash table of Holochain makes all of this possible (DHT). The Holochain platform has lately attained new all-time highs, and the Holo token (HOT) has done the same.

We’ll examine the many components of the Holochain and Holo ecosystems in this essay. We’ll talk about the various Holochain initiatives, how to use Holo to generate passive revenue, and how the Holo token (HOT) and HoloFuel work together. We’ll also look at Holochain’s use of ‘post-blockchain’ technologies to build a better internet that empowers consumers.

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What is Holochain?

With user autonomy in mind, Holochain was created to build a distributed internet. Holochain is rethinking how data affects our communications by altering how we share, store, and process it. Holochain seeks to build “a more human internet,” free from immoral information commoditization and centralised organisations’ control over people’s interactions and connections.

Holochain is building an internet that serves people, not companies, by limiting corporate influence. With Holochain, users may interact and connect with applications that suit their needs without depending on centralised organisations, taking ownership of their own data and online identity. Additionally, Holochain makes it simple, quick, and affordable to develop distributed Holochain applications (hApps).

Additionally, Holochain separates data security from data integrity using post-blockchain technologies. In order to accomplish this, no Proof-of-Work (PoW) or Proof-of-Stake (PoS) consensus procedures are used (more explained later).

With the help of Holochain, developers can quickly and effectively build fully distributed peer-to-peer web applications. In addition, Holochain, which places a high priority on scalability, can enable a worldwide architecture comparable to that of Twitter or Facebook without the use of centralised data centres or storage.

Developers can now use a platform developed by Holochain to build distributed apps using the Javascript programming language. Check out the Blockchain Programming in C++ and Javascript courses at Ivan on Tech Academy if you want to learn how to create your own decentralised applications (dApps). No of your level of experience, these courses will teach you programming from scratch. Check out the Ethereum Smart Contract Programming classes after that to discover how to build and use your own dApps!

How Does Holochain Work?

The method by which a transaction is validated and confirmed is the primary distinction between blockchain technology and Holochain’s use of a distributed hash table (DHT). With blockchain, the Proof-of-Work (PoW) consensus mechanism must be used by every node in the network to reach consensus. However, some Proof-of-Stake (PoS) algorithm variants simply require a majority of the network to authenticate a transaction’s validity.

However, the hash-chain strategy is “agent-centric” when using a distributed hash table (DHT). This implies that individual nodes can independently confirm and validate transactions. The remainder of the network is subsequently informed for transparency, and nearby nodes confirm the verification.

The present blockchain development landscape prioritises scalability. Blockchain networks require more energy to confirm transactions as more nodes are added to the network. Many blockchain developers are working on creative layer-2 solutions to address this issue.

By sharding distributed hash tables, Holochain has created a solution to this problem (DHT). As the network gets bigger, this helps by reducing the transaction load on each node.

Furthermore, as compared to blockchain technology, the energy needed to create Holo tokens is incredibly low. The upfront expense of being a node or validator on large blockchains like Bitcoin or Ethereum presents a significant barrier to entry for many users. This can be caused by the initial hardware requirements or the minimum staked token amount. Holochain can run numerous full nodes on a mobile device and doesn’t require mining.

No mining or staking is necessary for the “post-blockchain” system known as Holochain. As a result, Holochain is immune to most strikes. Additionally, this significantly lowers the network’s already-minor danger of malicious actors. With the additional ability to validate counterparty nodes, users can trust and validate the code on a single node.

DHT (Distributed Hash Table)

The concept of employing distributed ledger technology (DLT) with a decentralised ledger for all nodes to connect to is eliminated by distributed hash table (DHT) technology. Holochain is focused more on autonomous node sufficiency and “individual source chains.” This serves as an alternative to the network’s requirement that all nodes be connected at once. Nodes are tested against their neighbours and validated against one another.

There are no Proof-of-Work (PoW), Proof-of-Stake (PoS), or other consensus mechanisms in a distributed hash table (DHT). As a result, the Holo token requires less energy to generate (HOT). Additionally, DHT networks have much more effective scaling than blockchains. Compared to sharding blockchains, sharding DHT is simpler and less expensive. Moreover, there is no chance of delays or bottlenecks because transactions are handled instantly.

What is Holo?

Holochain refers to Holo as the “bridge” that connects Holochain and the general internet. Additionally, Holo offers the Holo Host programme, which enables anyone to use the “Holo hosting box.” In order to make money off of any unused storage or processing power, this operates in the background on users’ PCs. Assuming most people aren’t using their computers to their most potential, Holo has made it possible for users to become Holo Hosts and earn HoloFuel.

By lending out their physical and computing resources and letting others host distributed Holochain applications (hApps) and data, Holo Hosts can earn HoloFuel. Additionally, Holo Hosts have control over the hApps they host, the costs associated with doing so, and the order in which apps are prioritised.

Holo Ecosystem: Centralized or Decentralized?

Holochain is a self-sustaining, completely distributed platform in and of itself. The company is aware that users will gradually switch from centralised to decentralised entities in order to achieve widespread acceptance. This is frequently caused by a lack of knowledge and comprehension of the technology or by comfort with the well-known, centralised user-experience.

In this situation, Holo is useful. Users can transition from centralised systems to the decentralised, distributed Holochain environment via Holo, which is intended to serve as a bridge. The team is aware that some elements of the Holo ecosystem must be centralised because Holo connects the two.

HoloPorts

In addition to serving as a bridge between Holochain programmes (hApps) and users of the traditional web, HoloPorts are hosting devices. Both Holo and HoloPorts concentrate on giving peer-to-peer hApps distributed computing capacity in exchange for HoloFuel from consumers.

With HoloPorts, which are external hardware components, more processing resources can be diverted to the Holochain network. The HoloPort Nano, HoloPort, and HoloPort+ are the three sizes of HoloPorts that are offered. By rewarding users for global capacity sharing, Holo and Holochain are collaborating to cut down on unused computing resources.

HoloFuel 

The only way to obtain HoloFuel, a “asset-backed mutual-credit currency,” is through the trading of computing power on the Holochain network. HoloFuel’s main objective is to compensate the Holo Hosts for their contributions. The “mutual-credit accounting system” used by Holochain can support countless microtransactions each day.

“Value-stable not value-static” describes HoloFuel. This indicates that the pricing is not linked to a currency or good from outside the country. Rather, the value of HoloFuel is measured in computational units, which are made up of bandwidth, storage space, and processing time. As a result, HoloFuel can be viewed as an Ethereum gas equivalent for the Holochain. Users will soon be able to trade their HoloFuel for network computing power or sell them on the open market. The essential component of distributing processing power across the Holochain network is HoloFuel.

Holochain Applications (hApps)

Users can connect with, create, and/or host distributed Holochain applications (hApps) on the network using Holochain. Using open-source preset modules from libraries and utility classes accessible through Github, developers can create hApps. For developers, a wide variety of tools are accessible. These consist of the Holochain Playground, Zome Explorer Tool, Rust HDK (Rust Holochain Development Kit), and HoloJS Wrapper. Others include Holochain RAD Tools Phase 2 (Rapid Application Development) and the Holochain IDE App Builder, among many others.

Holochain applications (hApps) give non-developers the chance to use cryptocurrencies to generate a passive income. This is accomplished by pooling computing resources to run the hApps. Users can provide Holochain apps any extra computing power with the hardware extension HoloPort or the online HoloHost software, which both offer plug-and-play functionality and pre-installed software.

In comparison to other significant blockchains, Holochain offers an appealing alternative development platform for applications due to its simplicity of creation and equitable distribution of computational resources. Only a fraction of the Holochain applications (hApps) currently running on the network are listed below.

Current Holochain Applications: 

As a fully distributed open-source network, Holochain enables anyone to develop Holochain applications (hApps). A number of official hApps for users to control data and privacy across the Holochain ecosystem are currently being developed by the team. These include HoloVault (an application that shows how a user’s data has been used), DPKI (a tool for managing private keys), and HoloChat (a tool for peer-to-peer communication within the community).

Other projects using Holochain in addition to the standard Holochain applications (hApps) include:

Using renewable energy integrations, tokenized energy assets, and a smart transaction energy grid, RedGrid aims to optimise the energy sector.

This platform, which enables content producers to get paid for quality writings, is frequently referred to as the distributed version of WordPress.

Fairbnb: The project goes by the same name as the well-known global brand “Airbnb,” and it uses a similar business strategy. But it is done in a fair, equitable way that is disseminated around the world.

Producers Token is a project that tokenizes agricultural assets and natural resources. It was created particularly for the agricultural business. Additionally, the portal offers a trading platform for assets divided into three main categories. tokenized resources

Holo Token (HOT) 

An initial coin offering (ICO) was used to introduce the ERC-20 Holo token (HOT) for the first time in 2018. Upon the mainnet’s launch, HOT tokens were offered as a “IOU” for the redemption of HoloFuel tokens. A number of prominent exchanges, such as Uniswap and Binance, provide Holo tokens. From $0.0002 during the March 2020 crash to $0.0095 in the first few days of March 2021, the price has changed significantly. As of this writing, according to CoinGecko, the HOT coin has a market valuation of $1.2 billion and is presently trading at roughly $0.007.

Research and development for the Holochain infrastructure were funded with $20 million from the initial coin offering (ICO). The company published an updated Holochain plan in February 2021 on their Medium site, outlining when we may anticipate the mainnet’s deployment. Additionally, Holochain supporters are eager to observe the 1:1 token conversion of HOT tokens to HoloFuel tokens.

According to the most current update to Holochain’s roadmap, the ‘Phase 3 – Alpha/Beta’ launch of the Holo suite of applications is scheduled for the end of Q1 2021. The expectation of upcoming more exciting releases appears to be correlated with the current price movement of the Holo token (HOT).

Holo, Holochain & Holo Token (HOT) Summary

With the creation of a distributed hash table, Holochain introduces a novel idea in distributed and decentralised technologies (DHT). According to Holochain, this technology is “post-blockchain” technology that leverages all of the benefits of blockchain. Additionally, this is accomplished without the disadvantages of many blockchains, such as high initial costs, network congestion, and high gas prices as a result.

The centralised internet and the decentralised Holochain network are linked together via Holo, which functions as a bridge. Additionally, Holo gives users the chance to make money off of their unused computer resources. Users who use cryptocurrency can generate a passive income by exchanging HoloFuel token prizes for cryptocurrency or computing power.

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