Hathor Network (HTR) Undervalued Gem – Could This Ethereum Competitor 100x?

Hathor Network (HTR) is a blockchain project with explosive potential. Many investors have been holding HTR for a while and now is the time to do a deep dive into the project for the ADAPTCrypto community. HTR has potential to compete with the larger blockchains, and with increased use, price action could follow.

The Rundown

  1. Hathor is a new type of distributed ledger technology developed from scratch under a high level of academic scrutiny with 7+ years of academic research and the PhD thesis of Marcelo Brogliato, co-founder of Hathor.

  1. Hathor is highly scalable and fast and FEELESS transactions (How great does this sound with current Eth fees?!). They plan to become interoperable with other blockchains in the upcoming year.

  1. Hathor has incredibly easy one-click custom token creation.

  1. HTR has Nano-contract capabilities: “a more secure and straight-to-the-point vision for embedded smartcontracting”

  1. If you compare the market cap (MCAP) of HTR to other blockchains, you start to understand the potential for growth.

What is Hathor Network?

According the Hathor executive summary, Hathor is:

A Novel distributed ledger architecture using both DAG and blockchain data struc-tures intertwined…As in IOTA, new transactions confirm previous ones, forming a DAG. Each transaction has its own proof-of-work which is solved by the issuer before propagating the transactions in the network. IOTA made great strides towards scalability, but its solution does not seem to work when the number of transactions per second is small. As in the case of Bitcoin, miners find new blocks which form a blockchain inside the DAG. Blocks collect newly-generated tokens and confirm all the transactions in the DAG. Each transaction has an accumulated weight which expresses the necessary effort to break the transaction, similar to the number of confirmations in Bitcoin.”

  • Hathor talks about how they solve the blockchain trilemma of security, scalability and decentralization through a hybrid of directed acrylic graph (DAG) and blockchain technology. The chain of mined blocks are inside of a DAG of transactions. The blockchain ensures security when transactions are small and DAG secured when transactions are high. Hathor compares its architecture to a combination of Bitcoin and IOTA

  • The Proof of Work mining process is merged with Bitcoin and Litecoin Mining rewards ensure a distribution of resources through decentralization without centralized coordination.

  • Hathor also incorporates Nano-Contracts which are basically simpler forms of smart contracts with drastically lower fees and computation power. These contracts incorporate oracles to insure the stipulations of the contracts are met with a reliable data source.

  • Atomic swaps are also a part of the Hathor infrastructure. This means that separate tokens can be exchanged on the same transaction increasing security and efficiency. There are rumors within the Hathor community that HathorSwap could be coming any day now.

  • Also, Hathor has an impressive single click custom token creation process. It’s quite simple. All you have to do is stake 1% HTR of the amount of tokens you are creating. If you choose to melt your tokens, you get your HTR back. The quick and easy token creation and HTR lock up could decrease the circulating supply by locking up tokens in the creation process. It only takes a 2 minute tutorial to explain the process. Check it out here.

Tokenomics

Hathor’s tokenomics have a few moving parts, beginning with the mined tokens and pre-mined tokens. I recommend reading the full tokenomics info. The circulating supply is made up of released pre-mined tokens and mined tokens. The Hathor team get 6% of their tokens “at an event of endorsed listing” and the rest is vested over a 4-year release schedule. Treasury tokens are for initiatives and growth including: “employees, suppliers, marketing, legal services, incentives for strategic use cases, securing strategic partnerships, future bounty programs, and other expenditures necessary to fulfill Hathor’s roadmap and long-term goals.” Vaulted Tokens have 5-year lock from mainnet and will be evaluated throughout to see if burn of unneeded tokens would be appropriate. The pre-mined tokens consist of the chart below:

Additionally, the circulating supply schedule looks intimidating and is something to keep in mind for shorter term traders, with inflation rates over 100% in 2021 decreasing drastically over the next few years with 1.11% inflation rate by 2025. The high inflation rates have not appeared to affect the price action drastically which will be discussed more later.

Again, mining is linked to bitcoin mining for the purpose of taking advantage of the already existing bitcoin infrastructure and the security of the massive bitcoin network.

Reward halvings: Annually during the first 3 years

Tokens issued by block:

  • Year 1: 64 HTR
  • Year 2: 32 HTR (from block height 1,051,200)
  • Year 3: 16 HTR (from block height 2,102,400)
  • Year 4 onwards: 8 HTR (from block height 3,153,600)

Team

Hathor’s team is public, feel free to check out their linkedin pages. They consist of a foundation of researchers and engineers who have been studying the foundations of Hathor for years. Part of Hathor is Hathor Labs that guards the locked pre-mined tokens, fund-raises and makes sure the project stays productive. Hathor labs will eventually be formed into Hathor Foundation and based in Switzerland. Hathor also has released their grants program to help support community engagement and innovation. There is also HTR/FDT, which is not officially part of Hathor Labs, but works on building and coordinating with Hathor. They are working on Layer 2 infrastructure like HathorSwap and Hathor Debit Card.

Roadmap

The Hathor team has potential for some excitement on their roadmap. Hathorswap, Hathor virtual debit card from HTR/FDT should also be included in the roadmap discussion although they are not on the official roadmap. Hathor has an ambitious plan to release of Nano-Contracts, NFT integration and interoperability integration with other blockchains. They are also looking to implement side-DAGs to increase scaling and 3rd party oracle integration. All by the end of the year. Hopefully they can pull it off.

 

ADAPT Price potential

After reading through the utility and technology behind Hathor, you may begin to understand the possibilities for price action. Hathor has potential for long-term investment as price could skyrocket after all the vesting and halving takes place. At the same time, there is the potential for some exciting short term price action as well. Since the HTR’s release on Kucoin, it already shot up from 20 cents to $1.80 all-time-high.

Although outdated, this breakdown of market caps, from Dread Bongo, of major ecosystems gives you an idea of how small Hathor is at this point. Currently with updated information as of March 2021, it would take Hathor more than 10x to just reach AVAX, and over 100x to reach ADA or DOT. I’m not saying that Hathor, or any other crypto, will reach Ethereum heights, but that would be about 680x if it somehow did.

 

Summary

Hathor technology and price action has potential if they can deliver on their road map, continuing to develop use-case for Hathor. In the meantime, we have already seen investors noticing HTR and crypto twitter falling in love with the potential that HTR offers. There are many investors who argue it is undervalued. Keep an eye on the vesting release schedules for short term price action, if you’re not interested in the long-term potential. Hopefully, Hathor can continue to enhance the crypto space.

Feel free to leave any comments below. Join us at AdaptCrypto for more Gems and our strong community at our Telegram or Discord.

Disclaimer: This is not financial advice. This is my own personal opinion and analysis. Please do your own research.