Holochain, which some people also call Holo, Holotoken has been imagined as an “enhanced” version of the blockchain as we know it today. Some don’t even consider Holo an altcoin, but rather an altchain, which is a crypto-asset that is fundamentally different from the ones we know.
In fact, Holochain operates on the basis of a new type of ledger that is more scalable, faster, more energy-efficient and significantly cheaper to run than Bitcoin or Ethereum. To get into the details, it is a registry similar to the blockchain, but for which the nodes only hold the data that directly concerns them, and only publish hash values of the data they hold. There is no absolute consensus for each operation performed, nor any central nodes. This may seem revolutionary, but it is in fact a mesh net, in which a value transfer solution is integrated (HOT tokens).
Holo also aims to eventually become the replacement for the internet, while remaining decentralized. On the Holo network, your personal data is 100% yours and you choose how to run your applications. You can share computing power directly through the Holoport to help others connect to peer-to-peer (P2P) applications. Every time people use applications you host, you earn HOT tokens.
The primary goal of the project is to be a fully decentralized platform for application design and web hosting. To achieve this, Holo uses a consensus method called “Proof of Service”, which makes it totally different from other systems using Proof of Work or Proof of Stake. Holochain is an interesting alternative to blockchains because it was designed specifically for the creation of applications and new technologies, which is not the case with a classic blockchain.
How does Holo and its HOT token work?
If we compare Holo to other crypto-assets, we realize that it is one of the only projects that launched its ICO with a working product already. Indeed, the company has already created a kind of box that allows the network to work: the Holoport.
Here is how it works:
First of all, you have to buy this product.
Then you have to connect the Holoport to the network.
Among different configurations, you will have to choose the one you want.
Then you can share the computing power of your Holoport and provide computing power for decentralized applications.
You will then earn Holo Fuel that can either be resold or used to buy services.
The Holoport box exists in three different models:
HoloPort Nano: 2GB
The “normal” HoloPort: 8GB
Different HoloPort boxes
Different HoloPort cases
The HOT token and the Holo Fuel
The Holo network currently works with its HOT token. However, this token is only temporary while everything is being set up. This token materializes your possession of a Holo Fuel and allows you to barter.
When the project is fully operational, this token will be replaced by Holo Fuel. The HOT token is the temporary link between the blockchain world and Holo.
It is not possible to mine Holo Fuel since it mostly refers to crypto-assets running on the Proof of Work method. Holo Fuel is a reward given when a person offers a service, such as sharing bandwidth or storage space. This method of awarding tokens has therefore been named “Proof of Service”. You can only earn Holo Fuel by providing a service to people.
The commissions charged for the use of these different services will be less than 1%. This cost is much lower than what current centralized solutions require, and will gradually allow the creation of a decentralized internet where the Holoport will serve as a bridge between users.
During its ICO that took place from March 29 to April 28, Holo managed to raise 30,202 ETH.
133,214,575,156 HOTs were purchased by users and the team awarded itself 33% of this amount in addition, which is 25% of the total number of tokens in circulation, which will ultimately be 177,619,433,541 HOT.
This patented design describes a system of nodes that communicate according to a relaxed, agent-centric distributed hash table.
It is a simpler way to represent complex distributed data models. It focuses on methods for saving, storing and retrieving data in a multi-node computing system where none of the nodes has a complete index of nodes or content managed by those nodes.
Holo filed the patent to ensure that it owns this technology despite being an open source project.
Challenges of the HOLO
With this operation, Holo has basically created a large market of computing power for the creation of decentralized applications. An achievement that had not been reached by other cryptocurrencies so far. Which in their operation are much more indirect than HOT’s platform.
And is that, in the process of creating decentralized applications on chains of other cryptocurrencies, such as Ethereum, the process is different. Unlike Holo, where users enter the chain with the explicit goal of lending their computational power to hApps. In ETH you lend your computational power to decentralized applications as a by-product of your labor to maintain the entire Blockchain.
Moreover, in Ethereum you can’t choose which dApps to service and which not to service. Nor can you set the commission you want to receive for the work you do. Which ultimately means a loss of power for the users, both the developers of the applications and for those who serve as hosts.
However, this does not mean that Holo has entered the dApps market with an advantage. Quite the contrary, as there are already a number of cryptocurrencies with significant baggage behind them, of which Ethereum is only the largest. It is difficult for HOT to massify its product, so beating the competition becomes its main challenge.
The Holo cryptocurrency works as an ERC-20 token, and like all these tokens, it has a wide range of digital wallets available. Thus, HOT is supported by major wallets such as MyEtherWallet, MetaMask and Trust Wallet.
As we discussed earlier, the decentralized applications sector is a major overlooked sector of Blockchain technology. It has not yet had a big enough success to boost it in the eyes of the crypto community.
Therefore, the platform developed by Holo, could serve as an incentive for the development of this type of apps. For, by serving as a marketplace that makes it easier for dApp developers to obtain computing power. It makes the process of hosting this type of programs more efficient, and therefore easier to launch.