New Ethereum killer born? Startup aims to solve higher gas fees problem using dollar

Hedera Hashgraph launched smart contracts 2.0 on its testnet. Image from hedera.com
Hedera Hashgraph launched smart contracts 2.0 on its testnet. Image from hedera.com

Key Takeaways:

  • Hedera Hashgraph announced Smart Contracts 2.0 went live on its testnet.
  • Its governing council voted to buy hashgraph IP

NEW DELHI (CoinChapter.com) — Hedera Hashgraph (HBAR) announced the testnet launch of its so-called smart contracts 2.0, claiming that it would resolve a long-standing higher gas fee issue in the industry by quoting it not in its native token HBAR — whose prices may turn volatile, but in a rather stable U.S. dollar.

“The efficiency of hashgraph makes this possible and, as to be expected, these fees are still predictable when using smart contracts,” explained Gehrig Kunz, director of product marketing, adding:

“On Hedera, gas fees are always predictable. What it takes to perform that smart contract today will be the same at any hour, no more network congestion issues or having to go so far as to create your own device to know when it’s cheaper to deploy a contract (it’s always a $1 to deploy a contract on Hedera).”

Ethereum hourly average gas prices
Ethereum hourly average gas prices

Kunz also discussed Hedera’s scalability features, the ones that have plagued older blockchains like Bitcoin (BTC) and Ethereum (ETH). For example, the executive claimed that “the amount of gas available in an entire block on Ethereum, 15 million, is available in a second” on their blockchain, further adding that their smart contracts 2.0 are carbon-negative, with the lowest energy use among the layer-one networks.

Also Read: Ethereum (ETH) price headed for $5K while flashing a bearish setup—what’s ahead?

As a result, where Ethereum currently manages to process 30 transactions per second, Hedera claimed it could process 10,000 transactions per second with fees as low as $0.0001.

Hedera Governing Body Buys Hashgraph IP

On Jan. 19, the Hedera Governing Council voted to purchase the IP rights to the hashgraph consensus algorithm from the founding architect and inaugural council member, Swirlds Inc.

The announcement also shared open-source Hedera Hashgraph’s code under the Apache 2.0 license. In addition, its development and management teams would move to Swirlds, with CEO, Mance Harmon, and chief scientist Leemon Baird taking over the CEO and CTO position, respectively, at the firm.

Also Read: Cardano’s benchmark decentralized exchange, SundaeSwap, runs into issues right after launch.

Earlier, Hedera’s code was open review, which means while it was publicly visible, developers could not access or edit

The vision has always been for Hedera to be a council-member driven organization, enabling the most decentralized governance and therefore broadest-reaching public network on the market. We believe now is the time to enable the fastest adoption possible of the Hedera network, to capitalize on growing demand for public DLT.

said Scott Thiel, Partner at DLA Piper, one of the original Governing Council members.

Hedera is a public network with its cryptocurrency but not blockchain-based. It supports NFTs and uses a consensus algorithm called Hashgraph. The hashgraph is a public ledger that tracks time-stamped transactions between nodes on the network.

On hashgraph, transactions are contextualized by their place in order among the other transactions. Moreover, the algorithm only allows transaction confirmations by active nodes, saving energy and time. The hashgraph supports the ARIA exchange, a carbon-negative NFT platform that IBM partially backs.

Hedera’s governing council consists of 25 corporations, including bigwigs like Google, IBM, and Boeing.

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Hedera, New Ethereum killer born? Startup aims to solve higher gas fees problem using dollar

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