Around 10% of people around the globe currently buy cryptocurrency. With over 18,000 cryptos in existence, however, keeping up with cryptocurrency trends can be somewhat daunting.
Harmony (ONE) is a crypto coin worth watching for inquiring investors. Its distinctive features give it an edge over other cookie-cutter blockchains.
Want to learn more about Harmony crypto? Don’t miss out on this article!
Harmony Crypto Core Features
Harmony’s whitepaper outlines the main design features of its blockchain:
- Fully scalable
- Secure sharding
- Efficient and fast consensus
- Adaptive-thresholded PoS
- Scalable networking infrastructure
- Consistent cross-shard transactions
These features create a blockchain uniquely poised to overcome the limitations of both cryptocurrency (scalability) and fiat currency (centralization). It also offers these solutions without unduly sacrificing security, thanks to its sharding mechanisms.
Scalable Sharding
Sharding has long been seen as a solution to crypto’s scaling issues. In simple terms, sharding separates a network into independent sections (shards).
This increases the number of peer-to-peer users a network can handle. It also allows nodes to decrease the enormous amounts of data they need to store.
To help illustrate the concept, imagine a network as a library. The library is a cohesive system made up of individual books (nodes).
All the information in the entire library must be stored in each individual book, however. This decreases the efficiency of managing books.
It also limits the number of books the library can store because of storage and space issues. And it limits how many people can access the library at any given time.
Sharding allows books to only store meaningful information, instead of the entire library. The library can then handle many more books and library patrons with significantly fewer storage requirements (scaling).
The Harmony blockchain offers sharding on its:
- Blockchain state
- Network communication
- Transaction validation
Harmony’s blockchain features a beacon chain as an identity register, with multiple shard chains to process simultaneous transactions. This makes Harmony a pioneer in fully scalable solutions.
In the library metaphor, a typical network could only handle very limited book checkouts at once. It also takes a long time due to a large amount of information that needs processing and validation. Sharding the different process points creates several checkout stations that are faster and more efficient.
Secure Sharding
One of the main issues with sharding is security. Creating shards creates that much more access points for corruption, allowing attackers to commit fraud or erase data.
Harmony uses Distributed Randomness Generation (DRG) to confuse attackers. Each node gets random numbers for its sharding assignments. These numbers must be:
- Unpredictable
- Unbiased
- Verifiable
- Scalable
Nodes are randomly assigned and reassigned numbers at random intervals. This prevents attackers from using a malicious node to corrupt shards.
Imagine if an attacker wanted to falsify or erase library information. They’d have to insert a corrupt chapter (node) into an individual book (shard).
This is relatively easy if they can control which specific book they access, whenever they want to access it. However, they’re only given random books at random times for an unknown amount of time, making a successful insertion much more difficult.
Effective Proof-of-Stake
There are two main types of consensus for adding new blocks to blockchains:
- Proof-of-work (PoW)
- Proof-of-stake (PoS)
PoW is currently the most widely used mechanism. It requires network users to prove their work is valid by completing a task, such as a puzzle. This strategy is effective but hinders scalability.
PoS is a more efficient alternative strategy. Blocks are added by validators who “stake” their crypto for verification. Legitimate additions are then rewarded with more stakes.
Harmony takes PoS a step further by using its own newly designed Effective Proof-of-Stake (EPoS) mechanism. EPoS stated goals are:
- Fair stake distribution
- Unambiguous delegation
- Compound block rewards
Additionally, Harmony prevents large-stakes attacks through sharding by voting shares instead of validators. Voting shares are priced by an algorithm so attackers can’t use all their voting power in one shard.
Harmony One Coin Analysis
Harmony (ONE) is already live on the market. Its launch included coin exchange Binance and Binance DEX.
How much is Harmony ONE worth? How far is it poised to go? What factors will influence its value over time?
Just like the weather, nothing is ever 100% guaranteed in cryptocurrency exchanges. But there are several analysis tools you can use to make a reasonable forecast.
Fundamental Analysis (FA)
Fundamental analysis looks for a stock’s fair market value in relation to its trading price. If the fair market value is significantly below the current trading value, it’s considered undervalued.
This helps investors snatch up undervalued shares before the trading price potentially catches up. Investors look at a company’s overall financial health and its products and services in relation to market factors. These include:
- Cash flows
- Liabilities
- Profit margins
- Business model
- Competition
- Customer base
- Industry growth
- Long-term sustainability
- Corporate leadership
These factors help investors determine a company’s potential value in its market. Their stock might be overhyped (Facebook’s IPO) or underhyped (Nvidia’s industry share) in relation to their market and fair market value.
The Harmony ONE token currently has two main factors affecting its value: stiff competition and uncertain cryptocurrency trends.
Harmony is poised to become a leading crypto contender with its ambitions of scale and speed. It can be particularly useful as a payment system capable of handling fast transactions at a volume more comparable to credit card companies like Visa.
However, factors such as wars, inflation, and sluggish economic growth have resulted in a swinging crypto market. Many countries with significant markets are hostile to cryptocurrency. China banned crypto in 2021, and India has passed stiff taxes on crypto transactions to discourage its use.
Much of Harmony’s future fair market value depends on the strength of the overall crypto market worldwide. Fortunately, most countries around the world still support crypto as a valued currency.
Technical Analysis
Technical analysis is another tool for investors. It analyzes trading trends and statistics instead of company and industry factors.
There are several different ways to perform technical analysis. These include:
- Past, present, and future trends
- Trend strength or weakness
- Average price
- Price momentum
- Price and transaction volume
These formulas help you forecast a trading value based on past numbers. There are many factors that can unexpectedly upend a market, however, so it’s best not to neglect a fundamental analysis, either.
You don’t have to calculate the mathematical formulas for each value manually. You can keep up with Harmony’s technical analysis numbers at Trading View.
Average Directional Index (ADX)
The ADX is an average of price range values over a set period. It helps determine the overall strength of a trend, whether it’s positive (+DI) or negative (-DI).
Investors can use the ADX to sort temporary fluctuations from actual directional changes. A value of +25 indicates a strong trend. A value below 20 indicates there’s a weak or nonexistent trend.
Relative Strength Index (RSI)
The RSI measures the magnitude of price changes vs. the strength of price trends. This formula helps investors determine if assets are overvalued or undervalued.
The RSI scale is between 0 and 100. Generally, an asset is overbought at 70 and oversold at 30 or lower. This value is adjustable for real trends, however.
Commodity Channel Index (CCI)
Like RSI, the CCI can help determine if an asset is overbought or oversold. It compares the current price to the average price over a set time.
The CCI is unbounded and dependent on each individual asset’s historical value. Some assets may be overbought or oversold at higher or lower levels than average.
Moving Averages (MAs)
The MA simply calculates average prices over a set period. This can include over days, weeks, and even years. This formula helps investors filter price “noise” by creating smooth values.
There are several different types of moving averages used for stock market assets. Two popular MAs include Simple Moving Averages (SMAs) and Exponential Moving Averages (EMAs)
Volume-Weighted Average Price (VWAP)
Traders use the VWAP to compare current prices to set benchmarks. The calculated value uses average prices weighted by trading volume.
This gives investors an impression of both asset trends and asset value. It’s especially useful to find short-term trends for day traders.
Time-Weighted Average Price (TWAP)
TWAP measures an asset’s average price over a set period of time. Like MAs, the time set is flexible depending on the needs of the trader/investor.
This formula is also used to help offset large amounts of an asset entering a market, which can impact market prices. TWAP is similar to VWAP, with the main difference being it doesn’t take trading volume into account.
How High Can Harmony ONE Coin Go?
There are currently over 12 billion Harmony ONE tokens. For comparison, BitCoin is capped at 21 million, and Ethereum (ETH) tokens have just recently reached around 120 million. The global population has yet to reach 8 billion.
Harmony ONE is used for:
- Staking
- Voting rights
- Gas fees
- Transactions
- Storage
Harmony is very ambitious, even for a cryptocurrency. Its ROI has already exceeded 4,600%. Current crypto analysts predict stable and steady growth, reaching $2 in 2023 and potentially even $10 in 2026.
Harmony is still in the early adoption phase, however. If it reaches market leadership similar to Bitcoin and Ethereum, its value could go even higher.
News About Harmony ONE
Harmony’s strategy has been to focus on building a sustainable ecosystem instead of generating short-term marketing hype. This includes Web3 scaling, Non-Fungible Tokens (NFTs), and supporting crypto-integrated games, companies, and communities.
Partnership with XYZZY
Harmony’s most recent venture is a formal partnership with GameFi subsidiary XYZZY. Harmony will host the Realms of Ethernity (RoE), an MMORPG that will use ONE token for in-game rewards.
XYZZY is run by the Decentralised Investment Group. The company specializes in blockchain technology investments designed to disrupt current markets.
RoE is slated to launch in the spring of 2022. It’s predicted to spearhead revolutions in the gaming industry and disrupt the current metaverse.
XYZZY hopes to replicate Harmony’s success with DeFi Kingdoms. The popular crypto game is built on Harmony’s blockchain and uses the JEWEL token.
Investment in LootMogul
Harmony has invested in the LootMogul, a metaverse gaming platform. LootMogul lets sporting influencers engage sporting enthusiasts, along with earning NFTs and tokens.
Like Harmony, LootMogul offers a unique product on the current market. Its influencer list includes:
- the NBA (basketball)
- the WNBA (women’s basketball)
- the NFL (football)
- the MLB (baseball)
- the NHL (hockey)
- the ICC (cricket)
- Olympics teams
- College teams
- High-school sports
Influencers and fans go head-to-head in tournaments to earn prizes. They can also build arenas that have perks like VIP access to real-world stadiums.
LootMogul is partnered with SANDBOX and uses SAND tokens for some winnings. Players can also earn real-world cash.
Cross-Chain NFT Bridge Launch
Harmony launched an NFT bridge as part of the Horizon Bridge between the Harmony and Ethereum/Binance smart chain. This was in part to help offset high gas fees on Ethereum.
Another perk of the NFT bridge is to encourage new artists on the Harmony blockchain. Harmony’s comparatively low-cost platform allows artists to learn how to utilize blockchains in a low-stakes environment.
$50 Million DAO Infusion
Harmony seeks to support open-development scaling through decentralized autonomous organizations (DAOs). A DAO is a collective community that uses smart contracts as its operational bylaws and stakes as its organizational direction.
Harmony is helping build 100 DAOs, with investment support that includes supplying mandates, governors, and $1 million max funding. DAO examples include:
- Wallet DAOs
- Research DAOs
- Community DAOs
- Validator DAOs
- Developer DAOs
- Basic DAOs
- Matching DAOs
The ultimate DAO goal is to keep Harmony Foundation’s management decentralized. The company direction will be community-based, instead of driven by a top-down hierarchy.
Everything You Need to Know About Harmony Crypto and its Potential
Now you know the important information about Harmony crypto. It’s a unique blockchain that features higher transaction speed and volume for lower prices.
It also manages to secure speed and scalability while remaining secure thanks to its sharding mechanisms. It focuses on community outreach for its long-term sustainable industry growth.
Are you ready for more Harmony ONE insights? Check out more of our articles from industry experts!
