What is Holo?
Holo, short for Holochain, is a project aimed at decentralizing the internet by connecting participating severs all around the globe in a peer-to-peer fashion. By distributing network activity across a number of personal computers, Holo hopes to avoid many of the pitfalls of the modern internet which have been introduced from its ever-increasing centralization. Though it only exists in the form of an ERC20 token for now (HoloToken, or HOT), the Holochain network will employ a new form of digitally-stored value called Holo fuel as its native currency after the project’s full release. Instead of using the normal cryptocurrency-related terms such as coin and token, the Holochain team describes Holo fuel as an “asset-backed mutual-credit crypto-accounting system.” The underlying architecture for the project thus represents a complete departure from the traditional blockchain structures underlying most cryptocurrencies.
History of Holo
The idea for Holochain was developed by co-founders Arthur Brock and Eric Harris-Braun, two software developers with a long history of coding experience prior to the project’s founding. The name for the project was inspired by the idea of a hologram, in that one piece of a holographic image can be blocked but the entire image remains projected. This is a metaphor for how distributed systems, such as bit torrent, can continue to work despite the loss of one participant. HOT hit the markets in May 2018 and rose above a market cap of $200 million less than a week later.
How Holo Works
Holo describes itself as a “mutual credit accounting system” that does not rely on classical blockchain architecture to secure its network or validate its transactions. Instead, it uses its own system of validation known as a Distributed Hash Table (DHT). Acting as a “data integrity engine for distributed applications,” Holochain hardware and software is designed to insure the trustless, secure transmission of data across the internet, using a network of users connected in a distributed, peer-to-peer fashion to secure server space to host its applications. Instead of relying on the participation of nodes of which users need to connect in order to communicate with a cryptocurrency network, every user of the Holochain network has equal power and communicates with each other in an equally distributed way. Network participants who wish to lease out storage on their personal computers in exchange for Holo fuel can purchase a small hardware device
Holochain offers a completely new way to operate a decentralized network. It is trustless, secure, and free from reliance on any third party systems. In addition to providing a new framework for online networking, data storage and transmission, the advantages of its system-native currency, Holo fuel, are many:
Fast, easy transactions. A completely peer-to-peer cryptocurrency that is optimized for high speed and minimal fees.
Real-world utility. Holo fuel can be redeemed to pay usage bills incurred by the Holochain network.
Safe and secure. Completely accountable and transparent crypto-accounting, operating by known and shared rules running on every host machine.
DApp-centric. A large number of DApps are already being built on the Holo platform, which offers a special assortment of developer-friendly tools that make it easy to create DApps for any need.