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Holochain is a distributed network, data integrity engine for applications that gives developers a framework for building dApps and is an alternative to the traditional blockchain.

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What is holochain?

Holochain is a distributed network, data integrity engine for applications that gives developers a framework for building dApps and is an alternative to the traditional blockchain. The platform ensures infinite scaling capacity through a peer-to-peer network. It uses a validation mechanism called DHT (Distributed Hash Table) where each user has its own chain. Every transaction is signed and counter-signed by each party and then published in the shared Distributed Hash Table.
The regular blockchain-projects are trying to become more and more decentralized, Holochain has taken another way by creating a unique distributed network that reduces congestion and shade. The creators of the project Eric Harris-Braun and Arthur Brock, state that they have built a next-generation enterprise-grade network similar to a blockchain, but better. Holochain's scalability has no limits, supports dApps hosting, and maintains the cloud-based IT infrastructure.
Holochain is an open-source framework that includes Holochain token (HOT) and the Holo Platform for hosting Holochain dApps over the cloud. The Holochain core is written in Go, and the developers are going to add new languages to make the platform more versatile and flexible.

Holochain vs. Blockchain

Holochain is a modern approach to Distributed Ledger Technology. It avoids a traditional method of consensus, using a system where each so-called agent keeps its own private fork. This fork is stored and handled in a distributed hash table. Such a system makes it possible to solve the problem of scalability and to use fewer resources for dApps created and hosted on Holochain. Modern blockchain operates by storing data on a distributed network through cryptographic hashes. Scalability is the key problem of this technology, as the volume of data increases on the blockchain, it reflects poorly on the transaction throughput. Therefore, processing time increases, as much as transaction fees.
The Holochain system is like the structure of a hologram. In a hologram, a coherent 3D pattern is created by a specific interaction of light beams, and in the Holochain produces a coherent structure, putting together individual components and using holistic patterns as part of its design. Blockchains powered by Proof of Work algorithm needs a lot of electricity. Since nodes on Holochain don’t store and validate the entire blockchain, there’s no mining and thus energy usage is minimal, it means that Holochain is a green solution. The developers compare their system to how a living organism stores information in DNA or how languages are stored in people's populations.

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Holochain Usage

Holochain is a good decision for dApps that require a large number of individual inputs. It is working well in peer-to-peer platforms, supply chain management, reputational cryptocurrencies or loyalty programs, collective intelligence projects, and more, because of its agent-centric nature. Anyone can view a detailed overview of Holo dApps on the holohackers map. Holochain doesn’t operate well with private or anonymous databases since each individual node publishes a shared distributed hash table. It is also not suitable for apps hosting massive files.

Holo privacy and security

The two primary goals of Holochain include the removal of third-party intermediaries and improved security and privacy. The approach in which the platform provides each user its individual Ledger with its own chain is designed to protect the privacy and increase protection. Each part can integrate and share data, only when agreements are reached with the other chain’s element. Holochain dApps remain separated from corporate-owned servers because they operate on distributed networks. All users retain control of their data without third parties.

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HOT and Holofuel

The HOT coin is the main component of the Holochain ecosystem. The project doesn't rely on miners, HOT cryptocurrency excludes the consensus model and focuses on maximum freedom to the limitations. Each element on the Holochain network has its own Ledger and operates independently while communicating with each other on the platform. Each user gets their hash chain, with its own set of rules and restrictions. The HOT token is an ERC-20 standard it is able to be swapped for Holofuel.
Holofuel is the native currency of Holochain working as evidence of a contract agreement on the platform. It is built to function like Ethereum’s Gas and also serves as a native asset on web hosting, as the developers use it to pay hosts. Holofuel has many features. It is used on dApps as well as online marketplaces and also can be exchanged for different currencies. By the end, Holofuel will completely replace global ledgers as the primary source for tracking digital assets, and users will be provided with a distinctive ledger with their account balances and transaction history.

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