Harmony

Harmony (ONE): A High-Performance Blockchain Platform

Harmony (ONE) is a next-generation sharding blockchain designed to solve the blockchain trilemma of scalability, security, and decentralization without compromising any of these essential aspects. Launched in 2019, Harmony offers a unique approach to blockchain technology with its focus on random state sharding, enabling high throughput, low latency, and low fees.

What is Harmony (ONE)?

Harmony (ONE) is a layer-1 blockchain protocol that addresses the limitations of existing blockchain networks by implementing innovative solutions to enhance scalability while maintaining decentralization and security. The native token of the Harmony blockchain is called ONE, which serves multiple purposes within the ecosystem.

The platform was developed to enable decentralized applications (dApps) that can operate at a global scale, supporting use cases from decentralized finance (DeFi) to non-fungible tokens (NFTs) and more. Harmony's unique selling proposition lies in its ability to process transactions rapidly and cost-effectively, making it an attractive option for developers and users alike.

How Does Harmony (ONE) Work?

Harmony (ONE) operates through several key technological innovations:

Effective Proof-of-Stake (EPoS)

Harmony employs an Effective Proof-of-Stake (EPoS) consensus mechanism, which is an enhanced version of the traditional Proof-of-Stake (PoS) model. This ensures that validators are elected based on both their staked tokens and their previous performance, promoting a more fair and efficient network.

Sharding

Harmony's architecture implements state sharding, where the network is divided into multiple shards (currently four), each capable of processing transactions and smart contracts in parallel. This approach significantly increases throughput, as transactions can be processed simultaneously across different shards.

Fast Finality

Harmony achieves fast transaction finality through its Fast Byzantine Fault Tolerance (FBFT) consensus algorithm, which allows for blocks to be confirmed in just a few seconds. This quick finality enables real-time applications and a seamless user experience.

Cross-Shard Communication

To enable interoperability between shards, Harmony has implemented an efficient cross-shard transaction protocol that allows for seamless communication and asset transfers across different shards.

Staking and Validating on Harmony (ONE)

Harmony (ONE) offers robust staking opportunities for token holders:

Staking ONE Tokens

Harmony's Effective Proof-of-Stake (EPoS) allows ONE token holders to stake their tokens to validators and earn rewards. By staking ONE, participants contribute to the network's security and consensus while generating passive income. The current annual percentage yield (APY) for staking ONE varies but typically ranges between 8-12%, depending on network conditions and validator performance.

Becoming a Validator

Users with technical expertise can choose to become validators on the Harmony network. Validators are responsible for proposing and validating blocks, maintaining the blockchain's integrity. To become a validator, participants need to run a node and meet the minimum staking requirement. Validators earn rewards from transaction fees and block rewards, which they share with delegators who have staked with them.

Delegation Process

For those who don't wish to operate a validator node, Harmony offers delegation options. ONE token holders can delegate their tokens to existing validators and earn a portion of the rewards generated by those validators. This process is user-friendly and can be done through Harmony's staking dashboard or compatible wallets.

Mining on Harmony (ONE)

Unlike proof-of-work blockchains like Bitcoin, Harmony (ONE) does not support traditional mining. The network secures itself through its Effective Proof-of-Stake mechanism rather than computational mining. This design choice makes Harmony more energy-efficient and environmentally friendly compared to mining-based cryptocurrencies.

What is ONE Used For?

The ONE token serves multiple purposes within the Harmony ecosystem:

Transaction Fees

ONE is used to pay for transaction fees when using the Harmony blockchain. These fees are notably lower than those on many competing networks, with average transaction costs of less than $0.001.

Staking and Governance

ONE tokens can be staked to secure the network and participate in the consensus process. Additionally, token holders can participate in governance decisions, voting on protocol upgrades and network parameters.

DApp Utilities

Many decentralized applications built on Harmony utilize ONE tokens for various functions, including payments, rewards, and utility within their ecosystems. The growing DeFi ecosystem on Harmony leverages ONE for liquidity provision, yield farming, and other financial services.

Cross-Border Payments

Due to its fast transaction speeds and low fees, Harmony (ONE) is particularly well-suited for cross-border payments and remittances, providing an efficient alternative to traditional financial systems.

ONE Token Distribution and Launch

Harmony (ONE) conducted its initial token distribution through multiple channels:

Token Sale

Harmony held a token sale in 2019, raising approximately $18 million. The sale consisted of several rounds, including a seed round, strategic round, and a public sale through Binance Launchpad.

Token Allocation

The initial token allocation for Harmony (ONE) was distributed as follows:

• 12.5% to the seed sale
• 12.5% to Binance Launchpad sale
• 16.9% to the team and founders (subject to vesting periods)
• 22.4% to ecosystem development and partners
• 26.4% reserved for protocol development
• The remaining tokens allocated to various foundational aspects of the ecosystem

Emission Schedule

Harmony (ONE) follows a predetermined emission schedule, with an initial maximum supply of 12.6 billion tokens. The inflation rate is designed to decrease over time, eventually stabilizing to support the network's long-term sustainability.

Additional Features of Harmony (ONE)

Cross-Chain Compatibility

Harmony has developed bridges to various blockchain networks, including Ethereum, Binance Smart Chain, and others, enabling assets to move seamlessly between these ecosystems. This interoperability expands the utility of ONE and enhances the overall user experience.

Developer-Friendly Environment

Harmony is Ethereum-compatible, supporting the Ethereum Virtual Machine (EVM) and allowing developers to easily port their Ethereum-based projects to Harmony with minimal modifications. The platform provides comprehensive documentation, grants, and support for developers looking to build on its infrastructure.

Community Governance

Harmony (ONE) embraces community-driven governance, allowing token holders to propose and vote on changes to the protocol. This democratic approach ensures that the platform evolves in accordance with the collective interests of its users.

Trading Harmony (ONE) with Cryptohopper

Harmony (ONE) can be easily traded on various cryptocurrency exchanges. For those looking to optimize their trading experience, Cryptohopper's automated trading bot provides a convenient solution. With Cryptohopper, you can set up customized trading strategies for ONE and other cryptocurrencies, taking advantage of market opportunities 24/7 without needing to monitor the markets constantly. This platform supports trading Harmony (ONE) across multiple exchanges, offering flexibility and efficiency for both beginners and experienced traders.