Holo (HOT)
What is Holo?
Holochain is a decentralized cloud storage solution enhanced with blockchain technology and integrated with many other advanced protocols and algorithms such as Distributed Hash Table (DHT), Hashing Algorithm, and GIT.
Holochain was created as a common storage space for social applications, which will be kept on the network thanks to a Peer-to-Peer (P2P) cloud computing mechanism. Holochain allows users to easily save their apps on desktops without any heavy requirements on hardware or technical knowledge.
The platform encourages people to build and share hApps (Holochain applications). Holochain promises to provide an environment in which data storage, distribution, and interaction become much faster, cheaper, and more convenient.
In that context, Holo is a distributed P2P hosting platform that connects hApps with other Internet sites and applications. People can turn their computer into a host and earn rewards in HoloFuel, the native token of Holo.
While HoloFuel plays as a currency for hApps to pay their hosting services, another coin called HOT is sold as HoloFuel’s IOU. HOT tokens were offered through an ICO in April 2018 and can be redeemed at the ratio of 1:1 with HoloFuel.
Holo is not just a single platform. The project team has been simultaneously developing an inclusive ecosystem with different applications, such as Holochain, Holoport, and aiming to build a bridge for all Internet users.
What is the Purpose of Holo (HOT)?
HOT is an ERC-20 token, a placeholder for HoloFuel. HoloFuel can be considered as a mutual-credit currency, asset-backed with the network resources and plays an indispensable role on the Holochain network as an Ethereum gas, which will perform billions of hosting transactions a day.
In the meantime, HOT is designed more like a temporary execution currency that functions to raise funds, allows participation in exchanges on the crypto market, and pays fees on the network.
Once HoloFuel is fully launched on the mainnet, there will be a period in which swaps between HOT and HoloFuel are allowed with a conversion ratio of 1:1. HOT and HoloFuel are two sides of one coin that keeps the whole Holo ecosystem operating smoothly and efficiently.
As the main instrument to pay for hosting services on Holo, HoloFuel is designed to be value-stable. Though it still goes up and down, HoloFuel’s price is less volatile than many other tokens.
With HoloFuel, users own a P2P currency, which is optimized for high-speed transactions that are executed at low costs. HoloFuel earnings from hosting activities can be used to pay other bills as well.
The most fascinating thing about HoloFuel is its transparent accounting and operation applied by a set of common rules on every host machine.
How Does Holo (HOT) Work?
Holo has successfully brought up an entire ecosystem called HoloVerse, which empowers Holochain (home of hApps), HoloPorts (hosting devices that are capable of connecting hApps and mainstream web users).
In the Holo community, each individual is called a Holonault, referring to anyone who contributes to the network, from developer, designer, project team, HoloPort owner, or token holder.
There are lots of ways Holonaults can interact with a hApp. They can be shared, provide hosts, and other network activities.
Developers can create their own hApps effortlessly thanks to open-source libraries and available utilities, while non-developers can earn a passive income by installing Holo’s software or hardware and sharing spare capacity on their computers.
Once users get a hold of HoloFuel tokens from straight swaps or paid rewards, they can spend on various apps or marketplaces.
Otherwise, they have options to borrow HoloFuel based on their proven hosting record and use those tokens to pay for other services. Noticeably, unlike many other tokens, Holo offers no such mining or staking that can earn HoloFuel.
Sources
- https://holo.host/learn/
- https://academy.ivanontech.com/blog/what-is-holochain-holo-and-the-hot-token
