Which sector does hbar currency belong to?

hbar coin is the native token of the Hedera Hashgraph Layer 1 blockchain and is used to pay transaction fees, participate in network governance, and provide security deposits.

hbar coin belongs to the Layer 1 blockchain sector

hbar coin is the native token of the Hedera Hashgraph blockchain. Hedera Hashgraph is a Layer 1 blockchain based on distributed ledger technology (DLT).

Layer 1 blockchain is a base layer protocol responsible for processing transactions and maintaining the security and integrity of the network. It differs from Layer 2 solutions, which are designed to be built on top of Layer 1 blockchains to increase scalability and reduce transaction fees.

Hedera Hashgraph is a unique distributed ledger technology that uses an innovative mechanism called gossip consensus. This mechanism allows each node in the network to communicate with a limited number of other nearby nodes, creating an efficient and scalable network.

hbar coins play the following key roles in the Hedera Hashgraph blockchain:

• Transaction fees: hbar coins are used for payments made on the Hedera Hashgraph network transaction fees.
• Network Governance: hbar coin holders can use their tokens to vote on network decisions, such as voting on protocol upgrades or governance proposals.
• Security deposit: Verification nodes of the Hedera Hashgraph network must deposit a certain number of hbar coins as a security deposit to ensure their honest behavior.

In general, hbar currency is the native token of the Hedera Hashgraph Layer 1 blockchain and plays a vital role in the network, including paying transaction fees, participating in network governance, and providing security Security deposit.

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