The cryptocurrency landscape has exponentially expanded over the last decade, ever since Bitcoin entered the scene back in 2008 or 2009. Cryptocurrencies were designed as an alternative to the traditional financial system. The underlying technology, blockchain, has been applied for numerous use cases since then as people started to realize the potential of this groundbreaking new technology.
Among the newer projects being introduced in the cryptocurrency landscape, HoloChain has grabbed considerable attention. The project, which can be considered as an offshoot or product of the MetaCurrency Project, was founded by Arthur Brock and Eric Harris-Braun.
What Is HoloChain & What Are They Trying To Do?
HoloChain is designed as a decentralized hosting platform, enabling decentralized applications or dApps to serve mainstream internet users. It also provides a massively scalable infrastructure for hosting and managing these applications. It aims to provide developers with a framework for dApps creation, putting it into direct competition with the likes of Ethereum and the others. One of the salient features of HoloChain is its unique computing model, which employs an agent-centric system, rather than a standard data dependent blockchain.
The main aim of the HoloChain project is to tackle one fundamental problem, namely, the scalability limitations of blockchain networks. The main operating principle behind traditional blockchain networks involves the storage of data with the help of cryptographic hashes on a distributed network. However, some notable limitations have been noticed with this approach, with scalability being one of the biggest problems plaguing node verification.
HoloChain provides a solution to this problem in the following ways, each of which is explained in brief below
- HoloChain implements a new method called an agent system, to avoid keeping a global consensus. Under this system, an agent keeps a single fork, which is stored and managed in a limited manner. Here, the consensus engine uses a validating distributed hash table, which requires only those nodes which are actually exchanging data amongst each other, to reach a state of agreement.
- Developers are thus provided the capabilities of building their own hosted dApps in a personal hosted environment, which runs on top of HoloChain. They are not mandatorily required to interact with the rest of the shared distributed has table, which acts like a distributed ledger.
- Each of HoloChain agents maintain a single blockchain which interacts with the particular agent’s cryptographic key The HoloChain team provides hands-on support for developers, in a bid to drive organic growth.
How Do They Plan on Achieving This Goal?
HoloChain is very agent-centric as compared to other project, which makes them ideal for applications requiring many individual inputs but with limited accessibility for each user. Even though HoloChain is not a good fit for hosting large files or certain dApps, it can be applied to a number of use cases such as
- Collective Intelligence and Knowledge Management
- Peer-to Peer Platforms
- Social Media Platforms
- Supply Chain Management
How Does The Technology Work?
The underlying technology behind HoloChain has quite a few fundamental differences with the traditional blockchain. To better explain this, the main HoloChain network participants have been mentioned and explained below.
- Hosts: The hosts are responsible for providing processing power and hosting for the different distributed applications while earning redeemable credits.
- End User Participants: End users can also participate in the network, subject to the rules established by each respective dApps in the ecosystem.
- Application Providers: They are responsible for the security and the maintenance of apps which they publish on the Holo marketplace.
- Infrastructure Provider: To manage the bridging from the web to HoloChain, the Holo Application Delivery Network takes the support of reserve accounts.
The technological approach of the HoloChain project can be explained in the following steps:
- HoloChain’s Distributed Hash Table system maintains a series of rules for the verification of data on each node’s blockchain. Instead of making each node keep its own copy of the data in the entire blockchain, the verification process takes place on a distributed hash table.
- This is done to prevent data loss to the public blockchain in the event of a node failure. A limited copy is maintained and verified according to the rules instead.
- HoloChain prioritizes the information contained within the hash-chain of the user, seeking to achieve consensus only between those agents which require it. This is radically different from data-centric approaches of other projects, where reaching network consensus is prioritized.
- A level of security is achieved on each hash-chain through the use of DNA, which acts as an application specific contract in this case. As a result, any action that goes against an application affect the DNA structure of the hash of the block, does not affect anyone else.
Holo Fuel has been designed as a mutual credit currency, which keeps the circulating supply unaffected in the ecosystem. Holo Fuel’s supply is affected by the interactions between agents with both positive and negative balances. Three of the key factors include:
- The Host’s redemption behaviors
- Users purchasing fuel from reserve accounts compared to regular exchange
- The host’s spending behavior which is confined by their credit limit
The Main Competitors of HoloChain
HoloChain has quite a number of competitors in the decentralized application development landscape. Each of them has unique characteristics and aims to solve the problems in their own way. Some of the notable competitors include:
- Bottos: Founded in 2016, Bottos is a decentralized data sharing network protocol based on the blockchain.
- DeepBrainChain: DeepBrainChain is an AI driven computing platform dedicated for AI products with a comprehensive ecosystem behind it. It was founded in 2017.
- Neblio: Neblio is a decentralized application centric blockchain network founded in late 2017
- CyberVein: Founded in 2017, CyberVein is a platform used for developing blockchain based decentralized database solutions. It is capable of storing vast amounts of structured data on-chain.
The HoloChain project was conceptualized before the advent of Bitcoin and has been in the works from 2016. With a great team of developers and a strong code, they have worked hard on developing a user-centric architecture. With a potential to achieve even greater scalability than normal blockchain networks, the project is slated to become the front runner in this particular sector. The HoloChain token (HOT) is currently valued at $ 0.000808 USD and ranked 42nd according to Coinmarketcap. As of 14/10/19, its market cap exceeds $130 Million USD with a total of 55 tradable markets in exchanges such as Binance, CoinEx, WazirX and LaToken.
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