Harmony is a layer-1 blockchain using sharding and Effective Proof of Stake to achieve scalability, security, and decentralization. The network was launched in 2019 and features trustless cross-chain bridges and four shards, which process transactions in parallel. Effective Proof of Stake encourages decentralization of validators, and sharding shares the network's load among validators, delegators, and users.
Its native token ONE is used for transaction fees, governance, and staking. You can purchase ONE on Binance with a credit or debit card or trade it for another cryptocurrency. Once purchased, you can store ONE on EVM-compatible wallets like MetaMask and Binance Chain Wallet.
Exploring different altcoin projects can be a good idea if you're looking for new opportunities or crypto use cases. You might have already noticed the Harmony network or heard about it in the crypto media. To help you understand more about the project, we've outlined its background, key points, and some ways you can get involved.
What is the Harmony blockchain?
Another key Harmony platform feature is its Cross-Chain Finance model. The popularity of cross-chain and multi-chain capabilities has increased dramatically, and Harmony caters to this. The blockchain offers bridging services between BNB Smart Chain (BNB), Ethereum (ETH), Bitcoin (BTC), and other networks.
How does sharding in Harmony work?
1. A validator doesn't need to maintain a full copy of the entire blockchain's transaction history.
How does Effective Proof of Stake work?
EPoS’s reward distribution is what makes it different. Most PoS systems consolidate rewards and power behind a small number of validators. The more you stake, the more you earn and validate. In contrast, EPoS reduces rewards and penalizes validators who stake too much in a single node. Nodes with smaller stakes actually receive more favorable rewards in relation to their size, encouraging large validators to decentralize. This system also helps avoid single points of failure.
What is ONE?
The Harmony protocol's native token ONE is used for:
1. Paying network transaction fees.
2. Staking as a delegator or validator in return for block rewards.
Harmony provides a constant reward to validators of 441 million ONE annually. Transaction fees are burned with an end goal of creating a net-zero state, offsetting the ONE provided for block rewards.
Where can I buy ONE?
How do I stake ONE?
You can stake ONE on the Harmony blockchain as a validator or delegator. The simplest option is to stake as a delegator, which requires finding a validator to delegate your tokens.
2. Click the [Delegate] button.
4. Once logged in, click the [Delegate] button again and choose the amount you want to stake. If the validator you have chosen is elected, you and other delegators will start receiving a portion of their block rewards.
How do I store ONE?
New RPC URL (Use only URL in italics)
Shard 0: https://api.harmony.one
Shard 1: https://s1.api.harmony.one
Shard 2: https://s2.api.harmony.one
Shard 3: https://s3.api.harmony.one
Chain ID (Use only the number in italics)
Shard 0: 1666600000
Shard 1: 1666600001
Shard 2: 1666600002
Shard 3: 1666600003
Block Explorer URL
Don't forget that Harmony is made up of multiple shards. You must use the correct RPC URL and Chain ID pair when connecting to a specific shard. You should use Shard 0 for transacting with exchanges, staking, or using smart contracts until shards 1, 2, and 3 become more active.
Whether you're an investor, DeFi DApp user, or staker, Harmony has a solid ecosystem to explore and get involved with. Even at its current roadmap stage, there’s a lot to use and discover. With more cross-shard capabilities coming in the future, make sure to keep up to date with Harmony’s progress on their website.