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Hedera uses a Directed Acyclic Graph (DAG) to expedite transaction validation compared to blockchain technology. Dr. Leemon Baird, Hedera’s co-founder and former chief scientist, spearheaded DAG’s development. Hedera’s native currency, HBAR, is employed to settle transactions and earn rewards through staking. It also supports ERC-20 smart contracts, which facilitates Ethereum Virtual Machine compatibility.
Hedera intends to distribute HBAR tokens over 15 years using SAFTs, which distribute tokens over time with lockups. However, the efficacy of SAFTs is mixed when it comes to avoiding scrutiny from securities regulators. For instance, the U.S. Securities and Exchange Commission shut down Telegram’s TON blockchain network, which had used SAFTs to distribute tokens.
