Investor Watch: Holochain Provides Solid Returns Despite Bear Market

Holochain is a distributed network project with autonomous capabilities for users embedded directly into its architecture and protocols. The creators of Holochain claim that the distribution of their proposed type of storage and data processing can change the order of coordination and interaction. Thanks to digital integration, under the control of the user, Holo can free users’ online life from corporate control.

Key team members:

  • Eric Harris-Brown: The project’s co-founder is an executive engineer who received a bachelor’s degree in computer science from Yale University. He’s the co-founder of the peer-to-peer network application provider Glass Bead Software and independent software development store Harris-Braun Enterprises. He is also the author of sophisticated health data collection websites, Android-based application for monitoring catches for the fishing industry and other successful projects.
  • Arthur Brock: The other co-founder is the chief architect who has extensive experience in the field of artificial intelligence technology, which initially applied to GM, Chrysler and Hughes. He later turned his attention to creating social architectures and at Holochain is responsible for developing target currencies that form social the dynamics of the emerging post-industrial economy.

Main features

Unlike many crypto projects, platforms such as EoS, BitLattice and Holochain represent the evolution of block technology. They do not even use blocks as such and avoid linear arrangement of transactions (progression of “blocks”). They provide cryptographic control of information, but none of these projects require the same amount of consumed energy and resources, like Bitcoin and Ethereum.

At its core, Holochain is not a chain at all. It is more like “git-archives” that can be distributed, shared, synchronized or combined using BitTorrent-like DHT technology (distributed hash table). Each application has its own Holochain, and each operator has its own chain.

Holochain is a system book and application platform, similar to a blockchain, which, according to developers, is not affected by issues such as scalability and energy efficiency. Each device in the network receives its own register (Holochain) and can function independently, simultaneously interacting with all other devices in the network for decentralized problem-solving.

Another name that is often referred to at the same time as Holochain is Ceptr. This parent project uses Holochain infrastructure. It represents a new paradigm, which in some way resembles the Internet. It uses blockchain-like technology, which is characterized by a lack of consensus dependence.

Currently, the project authors are working on two initiatives: Holochain and Holo (Holo-Host). Holochain itself is a peer-to-peer infrastructure that serves as the necessary foundation for Ceptr.

Token

The community will receive tokens called Holo Fuel. According to the technical documentation, they are intended for the implementation of large volumes of microtransactions. Holo Fuel is not a cryptocurrency or token, but a kind of crypto credit that is created to link transactions between system participants.

Stability Holo Fuel will be provided by the computing power of each device in the network. Nevertheless, the authors of the project claim that the cost of crypto credits will depend on the number of hosts on the network and the computing power used. With each new user, the value of the ecosystem will grow, which will also increase the value of the tokens.

There are several essential characteristics of Holo Fuel, including asset support, non-use of tokens and signature of transactions by both parties to the transaction.

At the moment, the main coin of the Holochain network is the HOT token of the ERC-20 standard, which will be replaced by Holo Fuel after the launch of the final platform version.

TPs

The developers claim that the transaction processing ability of their network is limitless. The thing is, every second transaction is almost meaningless because of the Holochain architecture. Instead of supporting a single consensus, the Holochain distributed hash table contains a report on the main type and legitimacy of the information provided by the individual block chains. This eliminates the need to track every action on the network and the need for global consensus.

In simple terms, Holochain, as a framework for applications and has no limit on the number of transactions per second because the ecosystem where they should be implemented does not initially exist. This parameter is floating and increases as the number of network users increases.

Holochain Target Applications

First of all, the project is suitable for frameworks that require multiple individual inputs with some limited copy available to all. The most straightforward example is online networking platforms. Holochain also additionally offers technologies for administering the manufacturing network, cooperatives, public platforms, reputational platforms or digital forms of money.

Roadmap

The project’s roadmap is provided below. Here, you can see new developments coming through the pipeline in Q1 2019.

Price

We see that Holo receives positive sentiment from investors.

Its current market cap is around $75 million with an average turnover of $2 million over 24 hours. It still holds a good standing in the bear market, with returns of around 3.5x in U.S. dollar terms, 20.68x in ETH, and 7.8x in BTC. At the time of writing, it is currently traded at $0.0005 USD.

One could expect a conservative x2 in USD if the crypto market cap would remain the same and x4 if the market cap increases twice.

I usually invest with a stop loss to ensure a risk reward of at least 1:4 and buy assets weekly.

Featured image courtesy of Shutterstock.

Author:
Vladislav Semjonov has a legal and financial background. He has been involved in crypto space since early 2017 in both ICO advising positions in several ICO consultancy firms, and as an ICO analyst for VC. He began contributing for Hacked.com in April 2017.