Welcome back to the "Voice of Crypto," your gateway to the latest insights from the world of crypto and decentralized technology.
Today, we're thrilled to present the details of an exclusive interview with Mance Harmon, a seasoned tech executive and entrepreneur with a remarkable career spanning over two decades.
If you didn't know, Mance is the co-founder and CEO of SWIRDS Inc., the parent company behind Hedera Hashgraph and several other domains including cybersecurity, military technology, and more.
Mance Harmon's journey into the world of cutting-edge technology didn't start in Silicon Valley.
Harmon actually started in the U.S. military as a machine learning expert. Harmon also had the opportunity of working with Dr. Leemon Bair a co-founder of Hedera Hashgraph, during their tenure with the Air Force back in 1993.
This fruitful collaboration laid the foundation of what would later become Hedera.
It turns out that Mance's military career took him through several tech ventures, from missile defence to managing major programs for the Missile Defense Agency, until eventually starting Swirlds Inc. in 2015, and Hedera Hashgraph in 2017.
Fast forward to today, Hedera Hashgraph is now one of the most prominent Layer 1 blockchain out there.
And despite Hedera's success, however, Mance Harmon assures us that there's still more to come.
The core technology behind Hedera Hashgraph is the Hashgraph, a unique consensus algorithm invented by Dr. Leemon Bair.
During the interview, Mance Harmon says that while he's not Dr Bair's equal in terms of technical expertise, their partnership has been very effective in transforming the Hashgraph from merely an idea into reality.
Several consensus mechanisms already existed before Hedera's launch, including Bitcoin's Proof of Work and Ethereum's Proof of Stake (formerly PoW).
However, the history of Hedera's Hashgraph can be traced back to the burning need for a consensus algorithm that could balance security and performance, in a way that no other algorithm could.
Before long, Dr Bair went looking in 2012 and finally cracked the code in 2015.
His results, also known as the Asynchronous Byzantine Fault Tolerance (ABFT) have now set the gold standard for security in consensus algorithms, while including a new layer of scalability to Layer 1 blockchains.
Mance Harmon says that Hedera Hashgraph is different from traditional blockchains, in that it adopts a different structure known as a Directed Acyclic Graph (DAG).
Here's how it works in most of the other blockchains:
A chain of blocks mostly records transactions and a consensus algorithm determines the next block.
However, Hedera's DAG, on the other hand, records transaction history, while a separate consensus algorithm secures the network.
" In security, we've achieved the theoretical limit, making it as secure as possible. For scalability, Hedera can also scale, and this is due to the foundational building block, which is the consensus algorithm, ABFT"
But why is this separation important?
Mance Harmon says that this method ensures maximum security, thanks to Dr Blair's ABFT.
Having two algorithms to record transaction history and secure the network helps Hedera to achieve greater decentralization, security, and scalability, and tackle the notorious blockchain trilemma head-on.
One of the biggest issues with blockchain technology is what is known as the blockchain trilemma.
This trilemma simply states that no single blockchain can have decentralization, security, and scalability without sacrificing one for the other.
Bitcoin, for example, is highly secure and decentralized but lacks optimal scalability. Solana is highly decentralized and scalable, but not very secure. Finally, Avalanche is secure and scalable, but not very decentralized.
Mance says that Hedera, on the other hand, has now achieved decentralization, unmatched security, and impressive scalability.
The environmental impact of blockchains (especially PoW blockchains like Bitcoin) has become a pressing concern.
This is especially concerning sustainability, carbon footprints and damage to the ozone layer.
However, Mason says that Hedera Hashgraph operates with a different consensus mechanism that perfectly tackles this concern.
"We're using a different consensus algorithm. We can transact at a fraction of the energy consumption of a PoW-based blockchain, which is important in today's world."
Hedera's consensus algorithm minimizes energy consumption and reduces environmental footprint.
Hedera Hashgraph has also carved a niche for itself with its strong enterprise focus.
According to Mance, the platform boasts several use cases, including supply chain management, audit trails, tokenization, as well as property rights.
Mance also says that governments are embracing Hedera, and are using it in several application areas like identity verification for voting, land title registries, and CBDC.
Other giants Google, IBM, FIS and Chainlink are also joining the Hedera network, and are adding to the real-world utility of the platform.
CBDCs, despite the massive criticism against them, are one of the most significant developments in blockchain technology.
CBDCs are basically crypto versions of fiat and have been gaining traction with world governments.
Hedera steps in with its robust and secure network and is being widely used by central banks interested in digitizing their currency.
Mance Harmon mentions that the adoption of CBDCs is one of the best ways to have blockchain technology widely accepted.
Hedera's public network provides the ideal environment for central banks to create and implement CBDCs.
And Mance says that Hedera collaborating with central banks could usher in a new era of digital financial systems.
Non-fungible tokens (NFTs) have also been a massive success since their introduction.
These digital documents have changed the way the world views ownership, and basically represent security in art, music, real estate, in-game items, and even physical objects.
Hedera Hashgraph, with its security, decentralization, and environmental friendliness, is positioning itself at the forefront of NFT development.
Mance Harmon says that the versatility of NFTs as well as their potential can be handled by Hedera's robust infrastructure.
Combined, both of these technologies are set to make a mark in the flourishing NFT space.
Web3 is more than just a buzzword; it represents a digital world where users can participate in several activities including development, governance and even gaming.
Like in other areas, Hedera has a pivotal role to play in this journey with its proven performance, security, and decentralization.
"Web3 needs to have a reliable and secure layer for transactions. Hedera has an opportunity to be that infrastructure because we have the performance, security, and decentralization that you need"
Mance Harmon says that Hedera will be instrumental in the evolution of Web3, with several building blocks already in place.
As Hedera Hashgraph continues its rapid growth, the coming months and years promise to be exciting.
The platform is set to witness several more projects, particularly in the gaming sector. Mance also says that NFT enthusiasts can look forward to more innovation, Web3 users have a go-to blockchain, and governments and central banks can turn to Hedera for their CBDCs.
In closing, Mance Harmon says that the world can expect an eventful time over the next 1 – 2 years as Hedera Hashgraph becomes more dynamic.