What is HEAT?
HEAT is an abbreviation for Heuristically Enhanced Asynchronous Transaction Ledger that adopts a new way of structuring cryptocurrency and peer2peer decentralized blockchains. HEAT also features a decentralized exchange and native coin that can be traded in the third party exchanges.
HEAT is a Helsinki based platform created in 2016 by a cryptographic and blockchain developer referred to as Dennis de Klerk.
Dennis is a programmer since 1999 and has been involved in major cryptocurrency projects such as FIMK development and NXT client improvement. Therefore, what exactly is HEAT?
A closer look at HEAT
HEAT Ledger is a company based in Finland that describes itself as the third-generation cryptocurrency platform.
The company considers its lead product, HEAT, as a third generation cryptocurrency platform. The first generation blockchain included platforms such as Litecoin and Bitcoin whose functions were pegged mainly to sending value on a peer2peer basis.
Then the second generation cryptocurrencies such as Ethereum came a few years after Bitcoin was launched. These are cryptocurrencies that ushered in smart contracts that allowed businesses to include operational logic in their digital assets.
HEAT touts itself as the third-generation cryptocurrency that will provide seamless integration and operation of all cryptocurrencies as ecosystems. HEAT promises binary blockchain, multi-sig monetary forms, adaptable crowdfunding capabilities, and boundless adaptability.
The HEAT coin performance in the market
The price of the native coin, HEAT coin, started at $0.06 in early in July 2016 and remained within the range of $0.08 until April 2017. Between April 2017 and close of June, the price rose to $0.5 before sliding to $0.19 in November.
In December 2017, the price of HEAT coin grew steadily and reached a high of $2.15 in January 8th, 2018. This was approximately 3400% growth on the entry price. However, the growth was short lived.
By 19th January 2018, the value of HEAT coin had dropped from the top to $0.6. But the drop did not stop there. The value continued on a downward trend and settled at the range of $0.03 to $0.02 in the third quarter of 2018.
Though the community is optimistic that the value will finally take an upward turn, those who had invested in the system were counting losses by the third quarter of 2018.
It will be interesting to observe how the price of HEAT coin performs in the highly competitive network.
What is the problem that HEAT Solves?
- Poor scalability
While the blockchain niche might look like it is advancing well especially with the fast-growing number of cryptocurrencies, the reality is that it is chocking under its design.
The very design of cryptocurrencies that require all or most nodes to sign transactions has made it very difficult to scale.
If you take a closer look at the top cryptocurrencies and compare them with industry leaders, a sharp contrast is manifested. For example, Bitcoin can only support seven transactions every second while Litecoin can only handle 60n transactions/ second.
When these rates are compared to the industry leaders such as Visa that can handle over 20,000 transactions every second, it implies that the blockchain systems are limping. This is the gap that HEAT comes to solve.
- Difficulty in cross-chain operations
Though blockchain networks are very effective in pulling down the cost of sending funds because they are peer2peer, sending value between them is very hard.
For example, if a person in the Bitcoin network wants to send value to another in the Ethereum system, he will be required to join the two networks.
The sender might also be required to use exchange services to convert the coins to another one. The concept of cross-chain operations is very difficult because the platforms have been developed with different objectives. HEAT targets to make this cross-chain operation a reality.
- Poor adoption of the blockchain niche
Every time that people see a new token announced, what runs in their minds is the complex programming underlying the process. For businesses that have fundraising needs, it is very difficult to imagine that they can issue own tokens.
Heat is designed as a complete platform to help make blockchain application at all levels a reality. Whether you only want to join a blockchain network for investment or target to issue tokens through an ICO, HEAT ledger wants to make the process easy.
How does HEAT solve the problem?
HEAT platform was designed to make the entire blockchain easily match to the next level. The founder and its development team adopted the following features and strategies to address the above problems.
The HEAT ledger ecosystem
This is probably the most notable solution adopted by HEAT to address the issues identified above. The target of the ecosystem is to bring all the parties together and make it easy for them to work as a unit.
The system combines the best features of the second generation cryptocurrencies to create a new platform that can cater for all cryptocurrencies. HEAT no longer looks at itself as a single unit. Instead, it targets to facilitate all other blockchains to move to the next level.
The HEAT system takes proof of stake (PoS) to the next level by introducing a new protocol referred to as proof of quality. Under the new proof of quality protocol, nodes are rewarded arbitrarily at regular intervals.
HEAT employs a completely decentralized approach to ensure that all the decisions on its system are made by users in the system. From creating new blocks to voting on new applications adoption, everything is decided by the nodes on the system. Here are the main features of the HEAT ecosystem that help to further address problems in the blockchain niche:
- The A2A exchange: This is a decentralized exchange that targets to help users trade directly without going through the standard exchanges. It also allows users to crowdfund.
- HEAT multi-mode: This is the main HEAT core created in different modes to help serve different clients. Whether you want to use HEAT for a business or individual needs, simply select the right mode. You can opt for the downloadable thin client, hub server or even a custom hub.
- Real-time multiplication layer: This feature employs occasion-based and configurable occasion sink mechanism when HEAT is run together with MySQL database server.
- Multi-account: This feature is designed to help users on the HEAT system to access the private keys of different cryptocurrency blockchains with just a click of a mouse. This means that you have one account but access to different blockchains. Therefore, exchanging the tokens of various platforms using the A2A exchange is as simple as a mouse click.
What makes HEAT better than it’s competitors?
The fast-growing blockchain niche has resulted in very high competition between individual networks. Here are the main things that make HEAT better than competitors:
- The HEAT platform is designed to support many cryptocurrencies. This implies that other cryptocurrency users are likely to find meaning in HEAT and join it for benefits such as using the decentralized exchange.
- The HEAT platform has provided users with a reliable way to extend blockchain use by customizing it to address their own needs. This implies that it is not rigid like other blockchains such as Bitcoin whose applications are standard and rarely fit outside the original model.
- HEAT provides for an easy to update and grow model which means that users can expect new features as the blockchain industries continue advancing. This sets the HEAT system apart from other systems such as Bitcoin that have proven very difficult to introduce changes.
- The platform has managed to beat most of the cryptocurrencies such as Bitcoin Cash and Ethereum on scalability by providing an infinite capability to scale. For example, the Off-Heap Memory Mapped Binary Files can help to give a high transaction rate of up to 1000 transactions per second.
For people who want to use different programs that can help their systems operate fast, HAET allows them to customize the system easily. For those with businesses, HEAT is preferable because clients can be cleared faster without waiting on the queue.
- HEAT operates as a completely decentralized platform. This implies that it is run by nodes spread in the globe without a centralized point of failure. They also help to secure the network and prevent the danger of 51% attack.
How can HEAT be categorized?
HEAT is a third generation cryptocurrency platform that has provided a viable bridge for developers, businesses, and communities to intensify the application of decentralized systems. By simplifying most of the blockchain operations and allowing entities to customize them, the community only has one expectation; faster growth of the crypto niche.
Despite this, HEAT has received some criticism for being overambitious. While the development team has done very well to dream big, the mandate is being considered to be rather broad. This is one of the reasons why investors are yet to put a lot of support for it. Indeed, value of the native HEAT coin was on a backward slide between January and the third quarter of 2018.
What is HEAT’s vision on Security?
The vision of HEAT on security is to become the most advanced blockchain platform that can help all the interested parties to move to the next generation cryptocurrencies with ease. To achieve this security vision, the HEAT development team employed the following features:
- Full decentralization and even distribution of coins to prevent the danger of 51% attack. The nodes spread in the system are used to ensure that there is no single point of failure like in the centralized systems.
- The development team is very aggressive in reviewing the network and closing the gaps to prevent attacks. This is done through regular updates and review of both HEAT and other networks to identify and prevent attacks.
- The platform employs advanced encryption to ensure that all user details are kept private and secure from third party seizures. This implies that even when miners follow back the public address for confirmations, they cannot pull out your details. Instead, they can only check balance to confirm you have ample funds to send.
Examples of HEAT’s use cases/ applications
As a third generation cryptocurrency platform, the HEAT development team has been working harder to deliver more use cases for not individuals and businesses. Here are some of these use cases:
- Use HEAT Ledger to create and issue tokens
HEAT Ledger provides businesses with a reasonable and straightforward platform for accessing and creating tokens. Whether you have been thinking of raising additional funds for development or wondering about the magic used to create tokens; the secret has been unveiled.
Your business can also issue tokens and make a mark in the fast unfolding blockchain industry. The process is simplified so that even those without technical expertise can see their goal of issuing tokens become a reality. If the conventional financial services providers have declined to fund your initiative, it is time to think of issuing tokens.
- HEAT as a platform for decentralized exchange
The process of going through a centralized exchange to change HEAT coins or other digital assets is complex and inconveniencing. However, the HEAT platform has an inbuilt decentralized exchange that allows users to exchange value without going through the centralized exchanges. The process is simple, direct and does not compromise the user’s anonymity.
- Use HEAT coin to trade in the exchanges
HEAT coin, like other cryptocurrencies, can be traded in the markets. This means that you can pair it with other digital coins such as Bitcoin and trade it depending on the prevailing forces of demand and supply. Remember that the platform will require that you join the preferred exchange that lists HEAT coin, sign for an account, and pay the required transaction fee.
- Use HEAT ledger as your wallet
On June 5th, HEAT released the Ethereum Heatwallet that allows users to store all ERC20 tokens. The wallet allows users to see Ethereum and transaction history of ETH addresses. It also allows the user to import seeds and store them on preferred devices.
- Use HEAT to pay for products and services in shops and stores that support it
As more stores continue supporting blockchain technology, it is becoming easier to pay for services and products using coins such as HEAT token. The heat platform makes buying with the digital coin simple because you can easily exchange the coin if only a different cryptocurrency is supported.