Until now we’ve seen a lot of developments in the crypto and blockchain space. However, even if the blockchain was created to decentralize the digital world, it’s still facing some problems like scalability and energy consumption.
While the developers are working constantly on finding solutions for scalability and energy consumption, a new project came to surface which aims to solve those problems, but also to decentralize the entire internet.
According to the whitepaper the Holo is built with the help of users of hosts which provide storage and processing power for dApps while they are being paid with Holo Fuel.
Meaning that the centralized web applications that are being stored in data centers will be decentralized by Holo and the community that is using it. The whitepaper tells us that the process will be self-scaling through the peer-to-peer architecture which automatically performs load-balancing and load-sharing across thousands or even millions of peers.
We might have the impulse to say that the Holochain is a blockchain, it’s actually not, or at least not a conventional one. Let’s see why.
The blockchain was created as a software-like architecture and relies on databases to function. This technology records all the transactions and information in a vast distributed database. It has “one shared reality across all nodes.”
The Holochain, on the other hand, is created on an agent-centric architecture, meaning that the whole system is fueled by each user or host that uses the technology. According to the whitepaper, Holochain allows nodes to act independently, or in tight coordination only with counterparties, and then share independently evolving data realities that agree over time.
With Holo each host will be able to transform their computers and devices into a money machine, that is paid for hosting distributed apps. Furthermore, each user can choose what app to host and also to set their own hosting prices. Which leads us to the next step.
The Holo Fuel
The community will be paid in credits called Holo Fuel which, according to the paper is designed to transact high volumes of micro-transactions. The team behind Holo explained that Holo Fuel is not a cryptocurrency or a token, but a crypto-credit which is created to link the transactions between the Holo hosts.
The value of Holo Fuel will be stable because the computing power of each device backs it. However, the team declared that the value of the crypto-credit would be dependent on the number of hosts that are online and share the computing power. With each host the ecosystem grows more valuable, making the credits increase in value too.
There are several essential characteristics of Holo fuel
It is asset-backed.
It does not use tokens or coins.
Transactions are counter-signed by both parties.
At the moment, the Holo (HOT) is an ERC20 token which will be changed in Holo Fuel after the team launches the final version of the platform.
How it works
Application Provider purchases hosting
Host generates signed service logs
App Provider pays the Host
Host might opt to cash out their hosting credits from the Reserve Account where the original payment was made.
A Host can only cash out credits earned for hosting.
While the crypto market has started to gain traction once again, it seems that the world of technology is also working overtime to deliver solutions which are giving the users the power to change the infrastructure of the digital world and the internet. Holo seems to be a huge project, and many people are suggesting that it will become the next biggest thing after bitcoin and ethereum.