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The distributed ledger, Hedera, continues to gain momentum in the market due to a host of upgrades and the addition of new services. Hedera operates as a fourth-gen network that supports full smart-contract programmability. Here's how the network has remained a competitive option for Dapp developers and traders alike.
Adds EVM Support
Hedera added EVM support to its network. This decision falls in line with the growing trend of new systems to include some form of Ethereum developer onboarding. The upgrade added full support for Solidity and Vyper programming languages. Both are popular coding languages used in the Ethereum ecosystem.
Hedera seeks to court Ethereum's development to its advanced platform via this maneuver. The protocol empowers users to create more immersive and helpful dapps. It accomplishes this task by improving performance and lowering costs. Additionally, Hedera offers a major upgrade to Ethereum such as immediate finality, fixed fees, and upgraded security.
The developers leveraged the open-source JSON-RPC Relay codebase to create ERC-20-compatible token services and assets. Currently, Hedera users can create on Hedera using the HIP-206, HIP-358, HIP-376, and HIP-514 token standards. These new token standards fall in line with ERC-20 standards.
Focus on Identity Tokens
This year saw Hedera focus on the growing identity token market. These advanced blockchain assets can save users and firms time and money by eliminating the extremely wasteful and outdated verification systems in use today. Hedera will place efforts on supporting the two most popular identity token types in the market today, KYC tokens and Badges.
KYC/KYB Tokens are like digital IDs. These systems are usually required to participate in regulated markets or hold tokens that service these industries. In most instances, users will need to provide all of their info and get approval to receive a KYC token.
These tokens leverage 3rd party service providers to verify your ID. This style of digital ID is more popular than ever and has also found use in proving that someone is human and not a bot. This style of ID token differs from Badge tokens which operate more like a resume of sorts.
Badge tokens are another digital ID system growing in popularity. Hedera uses badge tokens to help track the reputation of users. A developer could create badge tokens that look to their many accomplishments. These accomplishments can include things like the user’s actions, history, or reputation.
Badge tokens currently serve a vital role in many systems. They are often used to confirm that a person has the level of experience they claim. The cool thing about Hedera badge tokens is that you can point them to any information that highlights your accomplishments and reputation.
The integration of badge tokens can help several blockchain-related platforms. Badge tokens are commonly used to show that a node has been working with a network for some time and has met its service requirements. In this way, it is like an online resume and ID in one.
The real advantage of blockchain ID systems is that they prevent the user from the need to share sensitive information with third parties. This strategy is much safer than leaving your complete data with every organization that requires it. A digital token ID offers zero-knowledge confirmation of your identity to third parties which improves your long-term safety considerably.
Hedera conducted a major network upgrade to its security model this year. The HSCS Security Model v1 was effective but left some attack vectors open and was a bit slower in terms of transaction throughput. The version 2 upgrade to the Hedera security model brings along with it some major improvements in network performance.
The new update supports the latest Ethereum Virtual Machine (EVM) changes following the Ethereum 2.0 upgrade. The streamlined deployment offered by this maneuver has helped improve onboarding. To accomplish the task, the system now executes all smart contract transactions using the Besu EVM.
The platform leverages a Hedera-optimized Virtual Merkle Tree state to improve smart contract execution. The newest upgrade speeds up contract executions by seconds and improves security. Notably, the upgrade does add a few steps to the creation process, but the delays pale in comparison to the added security obtained through the maneuver.
Hedera Supports ChatGPT
Hedera has entered the AI race with its latest plans. The network recently released a toolset and directions on how to integrate the Hedera blockchain and ChatGPT functionalities. ChatGPT is the world's best-known conversational AI tool. The system has gained international notoriety over its capabilities and ease of use.
The popularity and capabilities of the ChatGPT AI have made international headlines and created a lot of hype. Hedera developers can now create Dapps that leverage the system's advanced capabilities via seamless integration. The new protocol opens the door for a host of AI-assisted blockchain features.
According to company documentation, the team has already put forth a system that uses ChatGPT to gather real-time data from the Hedera blockchain. Additionally, the AI could assist in a variety of network actions. For example, the system could help in tracking the platform consensus via the ability to timestamp and order events for specific software use cases.
AI Token Service
Another major reason why the AI integration has so many people excited in the Hedera community is the promise of an upgraded Hedera Token Service protocol. The integration would make it much easier for the average user to mint and manage NFT tokens without the need to program smart contracts.
ChatGPT developers can use the system to improve development features like API integration and smart contract services. Notably, the protocol will make it possible for Solidity programmers to enter the ecosystem. Solidity is the programming used by Ethereum. It’s the most widely used blockchain programming language in operations today.
Hedera – A Distributed Ledger Focuses on the Future
Everything about Hedera demonstrates the level of research and market understanding the developers behind this project obtained. The network is fast and highly programmable. Additionally, the constant focus on improving the systems makes it one of the most interesting options for Dapp developers to consider.
To learn more about this project, make sure to check out our Investing Guide HERE.