Hey guys welcome back to Crypto Clan, today we’ll be talking about a number
of exciting hedera hashgraph use cases and news of hedea being a leading player
in the tokenized security industry.
Hedera Hashgraph, has announced a
partnership with the micropayments platform, Dropp. Dropp offers the ability for merchants
to implement their micropayment platform to enable merchants to overcome limitations
associated with current legacy payment systems. In current payment infrastructure,
transaction fees are costly and unpredictable, the settlement process associated with these
legacy systems are slow and are associated with poor transaction throughputs, especially
for when processing relatively low fees.
Dropp has leveraged Hedera’s hashgraph consensus
service to implement desired characteristics for a micropayment system.
will leverage hedera’s consensus service to provide a number of features including high
throughput rates, whereby transaction finality can be achieved in 3 to 5 seconds. Dropp will
also implement hedera’s ability to enable the processing of 10,000 plus transactions per
second, this would be highly advantageous, especially when processing potentially numerous
microtransactions. Hedera hashgrpah also offers low predictable transaction costs, whereby
transaction fees can amount to $0.001 dollars per transaction. This is in contrast to legacy
systems, whereby transaction costs typically amount to 4% per transaction, namely when
using mastercard or visa payment methods.
Dropp’s leveraging of hedera’s hashgraph
technology, could also open markets up to new payment methods such as pay per use and
micro-subscriptions. Aswell as the benefits experienced by merchants, consumers will also
benefit from the micro-payment model provided by Dropp, whereby, sign up procedures will
be more affordable and instantaneous.
The music, asset tokenization and payment
infrastructure platform, Tune.fm has built its system on Hedera hashgraph’s network.
Tune.fm solves inefficiencies in the music and streaming industries, whereby
artists are generally underpaid for the sharing of their music. Tune.fm enables
artists to publish their music for free, while listeners pay directly using a fungible
token issued on Hedera called "JAM." This payment model cuts out several costly intermediaries found
in today's music streaming business models, which is synonymous with platforms such as Spotify.
Tune.fm has turned to Hedera Hashgraph as its public distributed ledger of choice for the
issuance, management, and transfer of its native, fungible JAM token and exclusive NFT’s minted
by artists which use the Tune.fm platform. Tune.fm will implement Hedera’s token service
due to the platform's low transaction costs and low minting fees for NFTs. It costs $1 to
mint an NFT on the Hedera consensus service, this is in contrast to Ethereum, where
the minting of NFTs can cost between 9 dollars and 55 cents per transaction.
Hedera's performance and low, predictable fees enable economically feasible micropayments in JAM
while also reducing the costs associated with the issuance and transfer of non-fungible tokens that
represent unique content created by artists.
The growing number of partnerships Hedera
is engaged in has led to Hedera being one of the leading players in the tokenization
of securities in the world.
Tokenized securities can represent a number of assets
including, shares in a company, real estate, art collectables and many more assets.
Tokenized assets bring a number of benefits to the securities marketplace compared to
traditional security marketplaces. Benefits of the tokenization of securities include lower
fees, whereby, the tokenization of securities can remove intermediaries involved
in the transfer of securities. The use of the hedera platform will bring a
number of notable benefits to this industry, namely hedera’s low transaction fees, whereby
fees can amount to $0.001 dollars per transaction. Furthermore, Hedera’s high finality rate, will
lead to tokenized security trade that can be settled in 3 to 5 seconds. This is in contrast
to the trade of securities in a traditional sense whereby, it takes 3 working days to settle a
security trade, thus hedera’s DLT platform will enable for increases in the seamlessness
and efficiency of security trade.
Hedera’s Token Service will also enable the
potential for fractional ownership of such securities, whereby parties can acquire
a percentage of ownership of a security through the use of NFTs.
Hedera is an optimal
platform for such services due to the low fees associated with the minting of NFTs. The use
of hedera for the tokenization of securities will lead to increases in liquidity in
the securities marketplace. The increase in liquidity provided by the hedera consensus
service will lead to invariable increases in transactions taking place on hedera, this in
turn will lead to increases in the demand for HBAR tokens, which in turn will lead to
increases in the price of the token.
With wall street beginning to implement
technologies to aid in the tokensation of securities, more organisations, namely large high
net worth entities may look to hedera’s consensus service to build a securities marketplace.
With over 1.5 billion transactions already taking place on the hedera
consensus service, coupled with hedera having a number of large corporate partners,
hedera could be highly attractive for more organisations to build their platform on.
What are your thoughts on today's hedera updates? What price would HBAR reach by the
end of the year? Let us know your views in the comments below
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