In this article, we will discuss fundamental and technical analysis of Holochain and why you should buy HOT.
Holochain manages data integrity without requiring global consensus, it attempts to solve the issue of the impossible triangle of achieving scalability, performance and decentralization altogether which many other protocols including Ethereum have failed to achieve until now.
How are Holochain applications (hApps) Different from dApps?
Holochain is a framework which acts as a blockchain platform with configurable governance models. With this framework, governance, resilience, and privacy is configurable according to the requirements of the application. Arthur Brock, the co-founder of Holochain attempts to simply the design and distinction with Blockchain, he says in an interview,
What happens in Holochain is that you can build private applications, manage who participates, be able to have them scale to the size of Twitter or Facebook, which things on Blockchain can’t operate that way yet, and probably never will.
Hence, the applications using the Holochain are called hApps instead of dApps. Moreover, while it is similar to DAG, the consensus principle makes Holochain entirely unique.
Holochain is agent-centric; i.e. the only participants involved in a particular task verify the transactions, unlike the distributed consensus on blockchain, where global participants verify the same thing.
The list of apps on Holochain can be found here on GitHub. Currently, it lists apps like Holochain Basic Chat, Omni, Personas/Profiles, and HC-Redux-Middleware along with the addition of their most recent H-wiki app. There are other apps written for the protocol version as well. The editor for Holochain notes in a blog post,
“Building with Holochain means you can design completely serverless apps that run on the devices of the users themselves. You get the performance & integrity of server-based apps with the resilience and user empowerment of distributed apps.”
The New Version of Holochain
A new version of Holochain has been launched in April in this year. Despite the lockdown due to COVID-19, the developing team at Holo shows unwavering commitment to the projects. The v0.0.46 update on Holochain was launched in April this year with significant performance and security updates in the design.
Understanding the Cryptocurrency
The ICO phase of the Holochain (Hot tokens) was conducted using an ERC-20 token. The total amount raised in the ICO at the time was around $20.4 million. According the editor for Holochain, David Atkinson,
HoloTokens (HOT) act as temporary, transferable receipts which can be redeemed for Holo fuel when Holo is launched.
The backbone of Holochain is the Holo fuel which is awarded to the contributors for lending their space. Its primary utility is for Holochain application (hApp) developers and owners to pay these hosts for their services. This is the actual cryptocurrency which runs Holochain. Fundamentally, it is similar to the GAS on NEO or Ethereum, which accounts for the computation required for the execution of smart contracts on host systems.
However, Holo fuel supply is temporary and based on the amount of space in the system; it is based on a self-adjusting currency supply design. Read whitepaper here.
It follows the Proof of Service (PoS) protocol. Proof of Service (PoC) on Holochain is delivered by the balance between hosts and application providers on the Holochain. They also offer a plug and play hardware device, HoloPort, which provides an easy link for hosts with the network, along with a crypto-wallet.
HoloPorts are efficient, plug and play devices that make hosting easier, especially for those who might not be comfortable with Linux.
The total market capitalization of Holochain is $89,513,371 USD. $10,613,053 USD.
The weekly chart on Holochain again resembles one of a degenerate (a radioactive substance with a stipulated half-life). Nevertheless, launch of the Holo Fuel occurred in Q1 2019 instead of the ICO bubble in 2018, due to the the atomic swap between Holochain Tokens to Holo Fuel.
On the daily chart, the price is looking to find support at the 200 EMA (Exponential Moving Average). Nevertheless, the 50 EMA and 200-Day Moving Average (MA) continues to act as resistance to the bulls.
The oscillators on the weekly have been overly bearish for quite some time as well. On a daily scale, currently, the CMF ratio just got rejected at the resistance for bulls at 0, while the MACD is showing signs of reversal w.r.t. Bitcoin as well.
The rising dominance of Bitcoin [BTC], along with regulatory restrictions has been a causing an altcoin sell-off for quite some time now. Nevertheless, Holochain is in the clear even by the U.S. standards, as HOT was listed in the top 30 cryptocurrencies by Binance US.
Holochain aims to provide private database management which is a framework for public interaction and decentralized computation. The design is based on building a peer-to-peer network with interactions between the interested parties. The participants can choose between public and private information and verification does not involve a cumbersome mechanism. While it is an improvement on the blockchain design, it claims to be one up on the DAG (Directed Acyclic Graph) as well.
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