What HoloToken (HOT) Is & Why It Matters

Many altcoins have registered astronomical gains in the 2021 crypto bull run. If you’ve been keeping track, most of their prices have since corrected, and are now back to where they were at the beginning of 2021. However, one particular token is still posting greater than 1,000% gains for its holders. We’re referring to the HOT token. In this article, we’ll discuss everything there is to know about the Holo Network, Holochain and the HOT token. 

What Is the Holo Network?

The Holo Network was founded by Eric Harris-Braun and Arthur Brock in 2017, both of whom have extensive experience in smart contract coding. The Holo project was built with the vision of providing the tools and technology necessary to power the future economy of peer-to-peer (P2P) trading. At its core, Holo is a distributed P2P hosting platform for all the Holochain applications, known as hApps

Holo Network’s goal is to function as a bridge between decentralized Holochain apps and the existing centralized web which we use daily. The Holo Network and its ecosystem bring many distributed applications to a typical web browser. With the help of their native cryptocurrency, HOT, the Holo Network enables distributed hosting services powered by the peers in the network.

With the help of Holo Network, anyone can generate a passive source of income by loaning out the computational power of the devices they own. By doing that, users become hosts, earning rewards in HoloFuel. The best part is that Holo Network’s proprietary software runs in the background without disrupting the activities you perform on your electronic devices, such as phones and laptops. You also get to​, decide your hosting price, set your priorities and choose what Holo applications (hApps) to serve.

What Is HoloToken (HOT)?

HOT is the native token of the Holochain. It’s built on the Ethereum Network and acts as a utility token for the Holo Network. Users who offer computational power to the network are rewarded in HOT tokens. 

According to the Holo Network, HOT tokens will soon be tradable for HoloFuel. Once HoloFuel is launched, users can convert their HOT tokens to HoloFuel during the first six months of the Holo beta program. Holo fuel serves dual purposes as both the reward for input on the network and as the measure of computational power. 

What Is Holochain?

Blockchains can handle transactions significantly faster than traditional methods. In many cases, blockchains can process the bulk of transactions in less than a few seconds. However, there are some complaints about the workings of blockchain technology. Early blockchain networks such as Bitcoin’s are especially prone to scalability issues because their proof of work (POW) consensus needs a large amount of energy to function. 

Developers are constantly coming up with innovations to secure public blockchain networks while significantly reducing energy costs. The goal is to achieve high scalability — without compromising network speeds — while keeping transaction fees low.Holochain could potentially address all these existing blockchain issues. It’s an open-source framework which enables the creation of true P2P applications. Let’s take a closer look at Holochain.

How Does Holochain Work?

As mentioned, Holochain is an open-source framework for building fully distributed P2P applications. It is not a typical blockchain. 

On a regular blockchain, nodes on the network maintain the same network state. Holochain, however, is an energy-efficient ledger system that’s agent-centric. This means each agent (host) has copy of the secured ledger and can act independently, as well as interact with other devices on the network to provide a functional and highly scalable distributed ledger system

Unlike typical blockchains, with Holochain each node maintains its history independently. Holochain aims to eliminate the need for synchronizing all of the nodes in a network by implementing distributed hash tables, which creates a shared public space. With this approach, every node carries a part of the distributed data, which won’t be lost to the network when a node goes offline. 

This aspect of the Holochain is configurable and customizable for each application’s use cases. With the distributed validation process on Holochain, every app user agrees to and is aware of the application validation rules. If the application rules are broken in any way, other nodes in the network can identify who broke the rules, and take positions accordingly. 

What Is HOT Used For?

HOT tokens were launched in 2018 in an ICO. They were sold to users as IOU tokens which can be redeemed as HoloFuel tokens. As a mutual-credit currency backed by an asset, HoloFuel tokens can only be obtained by exchanging your computational power on the Holo Network. 

The fundamental purpose of the HoloFuel token is to reward hosts for lending their power. This allows Holochain’s mutual-credit accounting system to process billions of microtransactions every day. 

What Makes the Holo Network Unique?

The concept of the Holo Network itself is unique. By directly competing with the mighty blockchain technology, the Holo Network aims to solve the drawbacks of existing blockchain infrastructure. Apart from that, the way the network functions also makes the entire process unique. To become a node validator on the Holochain network, you don’t need huge amounts of processing power or electricity. In fact, you can even use your smartphone to become a validator. 

Key Features of Holo Network

hApps

Holochain is intended to enable developers to create various applications (hApps) on the Holochain network for the public to access. For instance, if you’re a developer, you can create your own chain to conduct microtransactions among your friends, without relying on an external protocol or receiving confirmations from other network participants. 

Passive Income Opportunity

As mentioned, users can share their idle computational resources to power various Holochain applications. By doing so, they generate a reliable source of passive income in the form of HoloFuel tokens. In addition, the Holochain platform offers great flexibility, as you can choose which hApp you want to provide resources for, as well as the amount you want to charge. 

Greater Accessibility

Built on the Holochain, the purpose of Holo is to make hApps easily accessible to everyday Internet users who may not be ready to install and test complex protocols like Holochain. Holo was developed to bridge that gap, and users can access hApps with a simple click on the application via their web browsers.

HOT (Holo Coin) Tokenomics

Note: figures below are accurate as of this writing, and are approximated up to two decimal places.

Total Supply — 177.6 billion HOT tokens

Circulating Supply173 billion (98% of the total supply)

Market Capitalization$1.08 billion 

24-Hour Trading Volume — $78 million

Price — $0.0062

Pros and Cons of Holochain

Pros

  • Holochain is an innovative framework which addresses many significant problems existing in the current blockchain infrastructure.
  • Holochain is highly scalable, extremely fast and more energy-efficient than any blockchain protocol there is today.
  • Apart from scalability and speed, Holochain also offers high security and low transaction fees.

Cons

  • Despite being in the market for over four years, the Holo project lacks measurable success. 
  • There’s no denying that this project has great vision. However, there’s a huge gap between what has been promised and what has been delivered thus far. 

Is HoloToken (HOT) a Good Investment? 

As the adoption of Holochain and Holo Network increases, the price of the HOT token is expected to appreciate. We believe that Holochain and its ecosystem has strong potential. According to the popular crypto price forecast platform WalletInvestor, the price of the HOT token is expected to appreciate by over 100% in less than one year. This platform also suggests that HoloToken’s price could appreciate from $0.0082 to $0.016 in the same time frame.

Buying HOT

One of the easiest and most convenient ways of buying the Holo token, HOT, is on the Bybit exchange. Follow the steps below to purchase HOT with Bybit. 

Step 1: Registration

If you don’t have an account with Bybit yet, you can easily create one in a couple of minutes. (If you’re an existing Bybit user, please proceed to Step 2.)

Visit the official Bybit exchange website and click Register in the top right corner. Enter your basic details as requested and create a secure password. Click Continue after confirming the password you’ve created. You will then receive a code at your registered email address or mobile number. Enter that code on the exchange page to complete the account creation procedure. Complete a quick verification process to start transacting crypto and fiat money on the Bybit exchange.

Step 2: Acquiring USDT In Your Bybit Wallet

The HOT token is paired with USDT, the most popular stablecoin, on Bybit. Therefore, you must hold USDT in your Bybit exchange wallet to purchase your HOT tokens. If you already hold USDT tokens in other wallets, you can withdraw them and transfer them to your Bybit exchange wallet. If you don’t hold any USDT yet, you can purchase it in a few simple steps. 

Visit the Buy Crypto page and select USDT in the drop-down menu. Then, enter the number of USDT tokens you want to purchase, as well as your preferred fiat currency. Complete the transaction by entering the number of USDT tokens you want to buy and selecting your preferred mode of payment (e.g., wire transfer, credit/debit card). Once the transaction is successful, the corresponding USDT tokens will be transferred to your exchange wallet.

Step 3: Buying Hot Tokens

Visit the Spot Market section and search for the HOT/USDT pair. On the extreme right of the trading terminal, you’ll find the Buy zone as highlighted in the screenshot below. Enter the number of HOT tokens you want to purchase and check the equivalent amount of USDT you’ll need to pay for them. Once confirmed, you can click Buy HOT to complete your purchase. 

We recommend using a limit order as opposed to a market order, in order to avoid slippage. Or, you can enter the trade at your desired price. HOT tokens will be transferred to your account once your order gets filled.

Source: Bybit | HOT/USDT

Step 4: Storage & Security

It’s crucial to secure your crypto tokens, as they’re potentially vulnerable to online hacks. Although the Bybit exchange offers maximum security, you should understand that it is ultimately a custodial wallet — a form of hot storage. Consider transferring your purchased HOT tokens to cold storage for greater peace of mind.

Closing Thoughts

As an open-source framework, Holo Network allows developers to create reliable P2P applications that offer unsurpassed speed. With Holochain, developers get to create their own chains to which they can add any data, such as financial transactions between two parties. The chains in the framework can split, merge and interact, making it highly interoperable and customizable.

Ultimately, the Holochain network is a potential alternative to the blockchain because it’s futuristic, cheaper, and more efficient. However, Holo Network will likely need time and effort to make their promises a reality. When that occurs, it will, truly have an impact on the gargantuan blockchain industry. 

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