Harmony (ONE) – All you need to know

What is Harmony?

Harmony is a software platform for building applications. These apps are marketplaces where people can buy and sell assets from each other directly without going through a central body. Every transaction on Harmony is paid using its ONE token, which is also used to pay fees, vote on governance issues, and earn rewards.

One of the pioneers of this type of decentralised software is Ethereum, and Harmony builds on that technology to create a platform that can be used on a much wider scale. The Harmony team boasts a lot of software engineering experience, as it’s full of alumni from Amazon, Apple, and Google.

How does Harmony work?

Harmony works by removing the middleman and replacing it with peer-to-peer transactions. Customers can deal with each other directly, as a history of every transaction is stored on a public blockchain. Whenever a new trade happens, Harmony checks the blockchain to make sure everyone owns what they say they do, and verifies the transaction by adding it to the chain.

What makes Harmony different is its use of ‘sharding’. Normally, blocks are added one at a time. With sharding, a block is broken down into lots of different pieces – shards – that can all process transactions at the same time, before coming back together as a single block to be added to the chain. This lets Harmony cope with many more transactions than the likes of Ethereum and Bitcoin.

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