Last updated: Jul 16, 2025   7 Min Read

I. What’s the technology behind Hedera? 

Hedera is a public, proof-of-stake distributed ledger powered by the patented hashgraph consensus algorithm, invented by Dr. Leemon Baird. Unlike traditional blockchains, it uses the “gossip‑about‑gossip” protocol and virtual voting to achieve asynchronous Byzantine Fault Tolerance (aBFT)-mathematically proven for secure and efficient operation.

• Hashgraph Consensus
  Transactions spread rapidly via gossip mechanisms; each node syncs and achieves consensus securely and instantly—requiring no blocks or mining .
  
  

• Open-source & scalable
  The code is now open-sourced under Apache 2.0 via the Linux Foundation’s Hiero project.
  
  

• Ultra-efficient network
  Designed for high throughput and carbon-neutral operation, Hedera handles hundreds of thousands of TPS in a single shard.
  
  

II. What main services does the Hedera network offer? 

• Consensus Service

Trusted timestamping and secure event logging.

• Token Service (HTS)

Create and manage fungible or non‑fungible tokens natively.

• Smart Contracts

EVM-compatible using Solidity via Besu-based contracts.

• Unique Governance Model 

Unlike many crypto founders who remain in full control Leemon and Mance chose decentralization of governance early on. The Hedera Governing Council now includes top companies across continents and industries. Members take turns running network nodes and voting on policy (no single-party control).

• The HBAR Token

Utility & Security: HBAR fuels transactions, stakes to secure the network, and earns staking rewards (~6.5% APY).
Ecosystem Fuel: Supports real‑world use cases-DeFi, NFT, micropayments, supply chain, identity, and more.
Enterprise partners: Big names like Google Cloud, IBM, and LG are actively deploying solutions.
Real-world pilots: Projects in CBDCs, tokenized assets, media rights (Avery Dennison, Tokeny & HBAR Foundation).
Environmental impact: Low energy protocol enables carbon‑negative claims.

• Hedera Governing Council members

This council ensures decentralized governance—no single entity controls the network. Each company contributes expertise, runs mainnet nodes, and helps guide Hedera’s growth. Hedera members leading global organizations spanning sectors like tech, finance, energy, legal, retail, and academia. As of now, there are 39 members, each holding an equal vote and serving up to two consecutive three-year terms.

  1.  Foundational Tech & Telecom

• Swirlds (creator of Hashgraph)

• IBM

• Google (via Google Cloud)

• LG Electronics

• Boeing

• Deloitte (via Mangrove restoration)

• Deutsche Telekom

• Tata Communications

• Zain Group

2. Finance & Banking

• FIS (WorldPay)

• Nomura Holdings

• Standard Bank Group

• Shinhan Bank

• Mondelēz International

• BitGo

• Nairobi Securities Exchange

• Arrow Electronics 

3. Energy & Sustainability

• Électricité de France (EDF)

• Blockchain for Energy (B4E) 

• COFRA Holding (May 2023)

4. Legal & Professional Services

• DLA Piper

• Dentons

• ServiceNow

5. Retail & Manufacturing

• Magazine Luiza (Magalu)

• Avery Dennison

6. Academic Institutions

• University College London (UCL)

• London School of Economics (LSE)

• Indian Institute of Technology Madras (IIT Madras)

• Ubisoft

• Dell Technologies

• Hitachi America

• COFRA Holding

III. Staking on the Hedera Network: How it Works

• What is Staking on Hedera?

Staking on Hedera is the process by which HBAR token holders help secure the network and support consensus by linking (or "staking") their tokens to trusted validator nodes. Unlike traditional blockchains, Hedera uses a Proof-of-Stake (PoS) mechanism that is energy-efficient, non-inflationary, and integrated directly into its Hashgraph consensus algorithm.

1. Token Holders

Users stake their HBAR tokens by associating them with a validator node.

2. Validators

Nodes participate in transaction ordering and consensus using the virtual voting algorithm.

3. Rewards

Based on participation, HBAR holders earn staking rewards, typically paid daily.

• Key Features of Hedera Staking

Minimum Stake

1 HBAR (yes-no high barrier to entry)

Custody

Non-custodial: your tokens stay in your wallet

APY

Approx. 6%–7% annual yield (varies with network conditions)

Lock Period

None-you can move your tokens at any time

Delegation

Stake to a trusted validator via wallets like HashPack

Slashing

Not currently implemented — validators aren’t penalized for downtime

• How to Stake HBAR (User Flow)

1. Download a Hedera-compatible wallet like HashPack.
   
   

2. Buy or transfer HBAR to your wallet.
   
   

3. In the wallet, go to the "Staking" tab.
   
   

4. Select a validator node and confirm delegation.
   
   

5. Sit back and earn rewards — no need to actively manage.