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? Well, in short, with a DAG system, there are no blocks, unlike the more common blockchain mechanism. All transactions record on each other, as something known as vertices. The transaction is then sent to the DAG from the nodes, similar to the blockchain system. For the transaction to be successful, the node must participate in the network’s Proof-of-Work mechanism. Other crypto projects such as IOTA, Nano, and Obyte also use the DAG system.
What you will learn
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 blocks extracted 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 with the Bitcoin and Litecoin Mining rewards. This ensures that rewards are evenly distributed without sacrificing decentralization.
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 can complete the project.
Hathor also has a unique option for creating custom tokens. 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 the circulating supply and decrease inflation.
Tokenomics
Hathor’s tokenomics can be a bit complicated, but I’ll break it down as much as possible. For the full picture, check out the tokenomics information.
The circulating offer has 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 needed to meet Hathor’s roadmap and long-term goals.”
Tokens in the volt have a locking 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 consume all their profits. Fortunately, however, the inflation rate is set 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 already provided by the Bitcoin network.
Reward halvings occur each year during the first three years, with tokens issued by the 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)
- Year 4 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 protects locked pre-mined tokens, fundraisers, and ensures that everything runs smoothly. Hathor Labs also announced that it is being formed into the Hathor Foundation and has its operational base in Switzerland. As one 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 that works closely with Hathor. Currently, the group is developing Layer 2 infrastructure such as HathorSwap and Hathor Debit Card.
Road map
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 scalability and integration of the 3rd party oracle. We hope that everything will be done by the end of the year.
Also worth mentioning is Hathorswap and the Hathor virtual debit card developed by the independent HTR/FDT.
Community
Hathor is an open source and 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 thousand members. Changes to the network are also discussed on their Discord channel which has just over five thousand members. The 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 Price Prediction 2021
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 vesting, halving and successful launch of the roadmap.
And HTR also has the potential for a short-term price increase with more and more hype piling up regarding 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 active again, I can see the price reaching at least $2 this year.
Hathor is still a small project. Currently, in June 2021, the market cap is around $86 million, the 348th largest. In order for HTR to reach a mid-cap competitor like AVAX, it would have to go up at least 30 times. And to reach leaders in space, the project would have to be a 280x to reach DOT, a 600x to reach ADA, and a staggering 3600x to reach King DeFi, ETH.
So, of course, getting into such a small project in advance can be a great opportunity. HTR could explode in price and become one of the big fish in the pond. But the opposite is also true. Projects like Cardano and Ethereum are leaders because people recognize the quality of projects. Hathor faces tough competition, and has a long way to go before entering among the greats.
HTR Price 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 see it becoming a giant. Of course, all this could change if new and original changes are added to the network. But as of now, I predict that hTR will not reach more than $6 by 2026.
