HBAR is used to power decentralized applications, enable payments and micropayments, reward nodes for compute and storage, and protect the network from malicious actors.
End users and proxy stakers
Developers and end users can purchase hbars from third-party companies and platforms, such as exchanges, that have chosen to integrate into the ecosystem. Once a user has hbars they can use the cryptocurrency to purchase goods and services, and pay application transaction fees. Those with hbars can proxy stake (coming soon) them to a Hedera network node — proxy staking will maintain the security and integrity of Hedera’s network operations, while earning the proxy staker 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 proxy stakers (coming soon).
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.