What is Harmony ONE?

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What is Harmony ONE, and why is it so popular? Harmony ONE is a project that solves the core blockchain concerns of the multi-chain world. Launched in 2019, Harmony aims to solve the problem of staying decentralized at scale. To do this, Harmony uses random state sharding and effective proof of stake to validate transactions.

The Harmony project aims to provide Ethereum’s high gas fees. Also, Harmony acts as a hub of markets for non-fungible tokens and fungible assets. The Harmony team works hard to make the blockchain open and trustless.

Read on as we answer what Harmony ONE is and how Harmony works in our guide below.

Harmony Blockchain

The Harmony blockchain network uses Sharding to speed up trades and keep low transaction fees. To do this, Sharding splits the whole network into smaller cells called shards. These shards allow work in seconds and avoid network clogging.

The Harmony network uses the consensus mechanism Effective Proof of Stake (EPoS) to secure the shards further. Users argue that shards invite risk since owning a shard is more accessible than the whole chain. Proof-of-work systems stop this because of the sheer high costs the attacker has to pay for an attack.

But unlike PoW, proof-of-stake (PoS) systems weaken the shards’ guard. In traditional PoS, stakers have access to all the shards. When bad actors stake more, they can take over shards easily and harm the network.

Hence, Harmony creators used EPoS and launched random state sharding. In EPoS, the network assigns a random shard for each staker per new block. Thus, stakers neither can’t own a single shard nor harm the network.

Harmony’s Native Token

The Harmony ecosystem uses ONE as its native token. You can use ONE token as a stake harmony crypto and earn block rewards. In addition, you can also pay storage and gas fees with ONE token as you use the network.

Holders can also use ONE token as a governance token for voting rights. Users can also enjoy their ONE token for tipping and exclusive access within Harmony as a community token. Every year, Harmony mints 441 million ONE tokens. And every move burns 0.000021 coins when you include slashed stakes.

Take note that you can’t mine Harmony ONE. It does not function as a replacement for regular fiat currency. You can only use ONE within the Harmony network as a utility token or stake. To stake Harmony ONE, you can be a delegator or a validator.

Delegators and Validators

As a delegator, you give your stake to an entity that can act as your validator. The network will reward you with block rewards by entrusting your stake to them. You will then receive your block rewards in a separate balance within your account. You can then withdraw these block rewards directly from your account.

However, delegators face some risks. Make sure you choose a reputable validator on your behalf. Check their uptime, commission, and past performance too. Lastly, split your stakes across different validators to minimize risks.

You can also be a validator if you have the equipment and coding knowledge to participate directly. You can place the stakes yourself directly into Harmony’s Staking Explorer. Log in using any hardware, software, or online wallet. You can access various validators’ data and profiles as you log in.

You can buy Harmony ONE at your desired crypto exchange. Look for the best deal, create an account, and deposit funds. Once you have funded your account, you can proceed to buy Harmony ONE and store it in your preferred wallet.

How Does Harmony Work in Blockchain?

Harmony collaborates with the Ethereum network instead of competing. Aside from Sharding and EPoS, Harmony also uses Fast Byzantine Fault Tolerance (FBFT). This protocol streamlines contact methods within the platform.

FBFT processes transactions in parallel to reduce CPU power and increase speeds. What’s more, FBFT allows stakers to combine messages across the network, reaching finality in two seconds. Finality occurs when all network users agree that the deal is final and can’t be changed forever.The Harmony platform also uses Distributed Randomness Generation (DRG) to increase shard safety. The DRG system approves random numbers and assigns nodes into multiple shards. Hence, this random Sharding makes it impossible for people to control a shard.

What Wallet is Best for Harmony ONE?

You can check Harmony crypto ONE in any significant decentralized exchange. You can trade, buy and hold ONE token, or use them as your stake in the Harmony blockchain. But the best way to store your tokens is when you keep them in wallets.

Harmony ONE Wallet

Harmony names 1Wallet as their official ONE wallet. The ONE team makes it available as a plugin for popular browsers like Chrome and is ready for quick installation. Of course, 1Wallet’s design, features, and safety make it the best wallet for Harmony ONE.

But if you want to check out the other options, feel free to read on.

  • Hardware Wallets

As of this time, Ledger Nano S leads the best hardware storage of Harmony ONE tokens. Also called “cold wallets,” this storage can store your ONE tokens offline with a unique private key. It’s an ultra-secure way to store ONE token since no one has hacked this storage yet. Make sure you don’t lose these private keys, or you will lose your coins forever.

Trezor also provides support for hardware wallets, but you need to set it up with MetaMask. Unlike Ledger Nano S, Trezor functions more like a small computer. Trezor is also more expensive than Ledger. It comes with a 24-word backup seed that you need to write down on paper and store safely.

Lastly, SafePal offers a hardware wallet with a mobile app tailored for newbies. SafePal is relatively newer compared to Ledger and Trezor. What SafePal offers uniquely is its user-friendly layout that newbies will love.

  • Multi-platform Wallet

And if you want complete control of your wallet on any platform, try the non-custodial Guarda wallet. It supports Face and Touch-ID for a more secure log-in! Hence, the Guarda wallet can be your web, mobile, desktop, and browser wallet that syncs very well across devices.

  • Browser Extension and Web Wallets

Mathwallet acts like your bank account in the crypto world. It supports dApps, NFTs, cryptos, and Harmony ONE tokens and lets you earn interest while holding. Mathwallet supports as many as 70 chains and works with most hardware wallets.

If you want a wallet that supports staking of ONE, Sprout is for you. Sprout supports Harmony ONE and allows multi-staking in various chains. Also, Sprout gives rewards daily and has an auto-staking feature.

  • Mobile Wallets

Trust Wallet reigns as the most famous mobile-only crypto wallet globally, backed by Binance. You can safely store Harmony ONE here with a user-friendly interface. Trust wallet charges you nothing when you swap tokens or use their dApps.

Also, Cobo Wallet offers a staking wallet to grow your assets fast as you hold crypto. Cobo is the first to support staking in pools and now offers to stake natively. You can safely store your Harmony ONE here, and it works well with their hardware wallet Cobo Vault.

Lastly, Infinity Wallet promises endless flexibility and solid mobile wallet storage for your ONE token. It’s a multi-chain wallet that can also store NFTs, collectibles, and crypto art. Infinity Wallet greets you with a sleek and modern interface and gives a premium feel. Its top-tier encryption makes you anonymous and gives you complete control of your wallet.

Why Does Harmony ONE Become Popular?

Harmony ONE grew very popular in its attempt to provide a well-built solution to the blockchain trilemma. Here’s why:

  • High Security and Decentralization

Harmony believes that it can maintain decentralization as the network scales. The platform achieves this by assigning stakers into different shards. The network then lets the stakers endorse new blocks and trades simultaneously.

Meanwhile, the platform still keeps high security as it scales. Harmony keeps down the number of ONE token users needed to join the validation process. Also, the platform uses DRG for multiple shards, increasing safety.

As of this writing, Harmony can process 120,000 deals per minute. The network believes speeds may rise to 10 million per second. With the team’s focus on speed, Harmony promises near-instant deals that pull them away.

  • Energy Efficient

PoW systems consume so much energy and computing power. Ethereum, the largest network to build dApps, still runs on PoW. As more creators make their dApps, the demand for power increases. Hence, environmentalists slam Bitcoin and other blockchains as not being eco-friendly.

Harmony’s Proof of Stake validation saves more energy than Ethereum’s Proof of Work governance. As a result, more users stake ONE and hope the network picks them randomly. The platform’s EPoS, which receives block rewards in under two seconds, make Harmony stand out from the rest.

  • Ability to Cross Chain

Also, these cross-chain capabilities permit nodes from other blockchain networks to validate transactions. Thus, Harmony can seamlessly send data to various PoS and PoW systems networks. In this way, blockchains operate more efficiently with the help of one chain to another.

Harmony launched a cross-chain interoperability bridge called Horizon. The Horizon bridge allows transfers between Ethereum and Harmony seamlessly. Hence, global payments occur faster and more conveniently.

  • Low Transaction Fees

Gas fees shoot up when users transact in high demand. But still, the Harmony network seldom slows down because of EPoS and 2-second finality times. In this way, gas fees stay low since deals finish before there’s even a line!

  • High Potential for Most NFTs

Non-fungible Tokens (NFTs) consist of digital art, music, and video with a unique signature. NFTs contain smart contracts unique to a single owner and stored on a blockchain. No one can forge these contracts since many users have a ledger copy. Because of encryption, NFTs are very hard to trade across platforms.

NFT trading still needs to gain traction and is still in its infancy. But, Harmony’s cross-chain feature makes NFTs even more accessible across networks. Harmony can bridge NFT deals in different networks, making it a thriving business in the years to come.

Harmony also plans to extend their NFT services into NFT lending across chains. The Harmony team also aims to offer a service to verify and fractionalize NFTs. Users will enjoy it once Harmony launches these services, which sets them apart from other blockchain solutions.

Is Harmony ONE a Good Investment?

You may be thinking if Harmony ONE is a good asset. Take note that creators made Harmony ONE due to Ethereum’s slowness. But when Ethereum moves to Ethereum 2.0, its new PoS might make Harmony ONE less needed.

But Harmony ONE aims to grow it into an entire system of services as more dApps launch on it. Harmony opens the door for collaborations between creators across blockchains with cross-sharding tech. And with ONE, they can enjoy faster and cheaper trades while still using Ethereum’s language. 

As of this writing, Harmony ONE price is $0.13 with an all-time high of $0.38. As Ethereum takes more time building ETH 2.0, speeds are getting slower while gas fees are higher. Hence, Harmony ONE’s price increases as more people shifts to Harmony’s services instead. So, while waiting for ETH 2.0 to go live, Harmony is a good asset.

But Harmony must establish their hub quickly until ETH 2.0 goes live. So even when ETH 2.0 launches, Harmony can still keep their clients. Once they establish their authority in cross-chaining, Harmony’s services will still be of great help to the Defi realm.

Investing in ONE is a very personal decision. Make sure you do your research before investing in Harmony’s token. ONE’s past returns do not guarantee its future performance.

Conclusion

As the Defi industry grows, Harmony ONE doesn’t offer competition but collaboration. Harmony ONE presents a sustainable bridge solution to make blockchains help each other better. In this way, blockchains can securely scale and stay genuinely decentralized. Thus, Harmony ONE leads as a top crypto network of future decentralized trustless economies.

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