The Hathor Network is a scalable and easy-to-use solution for decentralized finance. Launched in January 2021 by Hathor Labs, Hathor aims to make the process of creating new crypto tokens easier and more accessible. Tokens created on the network will have the scalability and parameters of Hathor’s native HTR token.
The network works by processing transactions with a mixed DAG (Directed Acyclic Graph) and a blockchain system.
The technology is very innovative unique to Hathor.
What is a DAG? In short, with a DAG system there are no blocks, unlike the more common blockchain mechanism. All transactions are recorded on top of each other, as something known as vertices. The transaction is then sent to the DAG by the nodes, similar to the blockchain system. For the transaction to occur, the node must participate in the network’s proof-of-work mechanism. Other cryptographic projects such as IOTA, Nano and Obyte also use the DAG system.
Table of Contents:
Fundamentals
Use case
Hathor aims to solve the scalability and maintenance of decentralization between crypto projects, also known as the blockchain trilemma. The project does this by including a chain of extracted blocks in each transaction DAG. Blockchain makes transactions secure if the number of transactions per second is small. And the DAG comes into play when it increases.
Hathor says he chose this alternative because it’s scalable, decentralized, and efficient. According to the executive summary, their main inspiration for the project is IOTA. Hathor aims to solve IOTA’s problems, such as their DAG solution not efficient enough when the transaction per second is small. In a way, Hafthor’s architecture is a combination of Bitcoin and IOTA.
As mentioned above, Hathor, due to its DAG technology, uses Proof of Work mining. The consensus mechanism connects to the rewards of Bitcoin and Litecoin Mining. This ensures that premiums are fairly distributed without sacrificing decentralisation.
Hathor also uses nano-contracts, similar to Smart Contracts on Ethereum, but with much lower fees and computing power. Contracts use oracles to ensure that contracts have a reliable data source.
Atomic Swaps is also integrated with the Hathor network. Other separate tokens can be traded on the same transaction to increase security and efficiency. And HathorSwap, a native alternative to atomic swaps, is in development. It will be exciting to see how they manage to complete the project.
Hathor also has a unique custom token creation option. To do this, bet 1% in HTR of the number of tokens you want to create. And if you burn your tokens, your HTR will be returned.
Quick and easy token creation and HTR blocking, if done enough, will lower circulating supply and decrease inflation.
Tokenomics
Hathor’s tokenomics can be a bit complicated, but I’ll break it down as much as I can. For the full picture, check out the tokenomics information.
The circulating offering pre-mined and mined tokens. The development team got 6% of the tokens and the rest will be distributed over a 4-year program.
Hathor also has treasury tokens, used in their words to: “employees, suppliers, marketing, legal services, incentives for strategic use cases, securing strategic partnerships, future bounty programs, and other expenses necessary to meet Hathor’s roadmap and long-term goals.”
Tokens in the volt have a block period of 5 years, after which they could be burned if necessary. The distribution of pre-mined tokens is:
The projected inflation rate for 2021 is just over 100%, short-term traders should be cautious or they will eat up all their profits. Fortunately, however, the inflation rate is expected to decline in the coming years, reaching 1.11% by 2025.
Mining is, as we said before, related to Bitcoin mining. This allows miners to use the security provided by the Bitcoin network.
Reward halfvings occur annually during the first three years, with tokens issued per block being:
- Year 1: 64 HTR
- Year 2: 32 HTR (from block height 1,051,200)
- Year 3: 16 HTR (from block height 2,102,400)
- From the 4th year onwards: 8 HTR (from block height 3,153,600)
Team
Hathor’s team is public; feel free to check out their LinkedIn pages. The team consists of researchers and engineers who have been working on Hathor for seven years.
Hathor Labs keeps the pre-mined tokens blocked, raises funds and ensures that everything runs smoothly. Hathor Labs has also announced that it is training in the Hathor Foundation and has its base of operations in Switzerland. As you would expect, the move raises questions about the decentralization of the project.
Hathor Labs has also funded initiatives to support the developer community. There is also an independent group of crypto developers called HTR/FDT who work closely with Hathor. Currently, the group is developing Layer 2 infrastructure such as HathorSwap and Hathor Debit Card.
Hathor Network (HTR) 2023 – 2025 – 2030
The Hathor project has a great roadmap. The ambitious plan includes nano-contracts, NFT integration and interoperability with other crypto projects, which are already partially out. Hathor is also working on DAGs that will allow for greater scaling and integration of the 3rd party oracle. We hope that everything will be done by the end of the year.
Hathorswap and the Hathor virtual debit card developed by the independent HTR/FDT are also noteworthy.
Community
Hathor is an open source decentralized project, so the community plays an essential role in the development of the project. The proposal for the Hathor Network is discussed on their Telegram channel, which has more than 14,000 members. Changes to the network are also discussed on their Discord channel which has just over five thousand members. Code changes are on Hathor’s Github.
Their weight on social media is solid but not great. Their Twitter profile has over 28 thousand followers and their subreddit about a thousand.
My HTR Prediction
Hathor has a great use case and technology. The more you read, the more you begin to understand the potential of this project. Hathor could prove to be a great long-term investment as the price could skyrocket after the maturing and halving and successful roadmap launch.
And HTR also has the potential for a short-term price increase with more and more hype accumulating about this project. Kucoin quoted HTR, which rose $0.20 to an all-time high of $1.90.
Recently there has been a price correction that has collapsed to current prices between $0.5 and $0.4. But when the bull market is again, I can see the price hit at least $2 this year.
HTR Forecast 2025 – 2030
I don’t think HTR has a use case original enough to differentiate the project from those already established on the market. That said, I believe there is room for smaller projects like HTR in the future, but I don’t think it will become a giant. Of course, all this could change if new and original changes were added to the network. But as of now, I predict HTR won’t reach more than $6 by 2026.
Where to buy and how to store HTR
The best places to trade Hathor are:
- Kucoin (buy and sell with: USDT, BTC)
- AscendEX (buy and sell with USDT)
And the best place to store Hathor is their official wallet.
