HBAR is used to pay transaction fees, make payments and micropayments, and protect the network through its proof-of-stake consensus.
HBAR Holders & Staking
Developers and retail users can purchase hbar from an exchange or OTC. Hbar holders can use them pay for application transaction fees and stake them to Hedera network nodes. Staking maintains the security and integrity of Hedera’s network operations and rewards stakers with a small share of transaction fees.
Applications run on the Hedera public network. Developers pay transaction fees in HBAR cryptocurrency for each API call, to reward the network for processing transactions.
Exchanges, in some markets, can be used by application developers, end users, and Hedera node operators to buy and sell HBAR cryptocurrency. Hedera does not control which exchanges support hbars.
When the Hedera network receives a transaction from an application, it validates it, places it into consensus order, and gives it a timestamp. For each transaction, the submitting application pays the network a fee that is split between network nodes, the Hedera treasury, and HBAR stakers.
Every Hedera mainnet node contributes to consensus and stores a copy of the public ledger’s state. Hedera mainnet nodes submit transactions to the network on behalf of applications and perform network service operations. This has associated costs of bandwidth, compute, and storage, for which the node receives HBAR as compensation. Node operators can sell the HBAR they’ve earned for other cryptocurrencies or FIAT through an exchange.