Ever since the beginning of the month of February 2021, Harmony (ONE) has managed to gain a lot of rally from the investors. According to the on-chain analysis, so far, Harmony (ONE) has gained around 230% rally. Harmony (ONE) one is a platform that is based on the proof-of-stake consensus protocol that exists in the form of smart contracts.
One of the major factors behind the rally experienced by Harmony (ONE) is Ethereum (ETH). As Ethereum (ETH) continues to achieve all-time highs in the cryptocurrency market, more and more investors continue to rally to the ETH market.
As a result of the above, the transaction volume on the platform has experienced a significant surge. This has caused the gas fees on the platform to sky-rocket and Harmony (ONE) seems to be benefiting from it.
The rise in the gas fees has not only caused a surge in the rallying for Harmony (ONE) but it has also gained growth for other assets as well. Some of the assets that have gained a lot of rallying include NEAR, Solana (SOL), Cosmos (ATOM), and OMG.
Despite many assets gaining growth with respect to their market capitalization and price, Harmony (ONE) has remained on the top of the list.
When it comes to the structure of Harmony (ONE), the (PoS) smart contract exists as a sharding protocol. ONE exists to provide a bridge for trustless Ethereum that is responsible for separating a chain into different segments. However, these segments tend to process transactions and store their data in parallel and equal portions.
The platform is responsible for splitting blockchain and node states into shards and is considered to offer a layer-2 solution. Due to these factors coming into play, Harmony (ONE) is capable of scaling the network linearly.
In order to maintain the cryptographic randomness, each shard is known to carry 250 nodes. The Harmony (ONE) protocol also utilizes the consensus known as “Practical Byzantine Fault Tolerance”. By utilizing the consensus, the network maintains final confirmation for single block and low transaction fees.
It was back in 2019 when the mainnet for Harmony (ONE) protocol went live. The platform is currently known for offering delegation and staking mechanisms to the users. It has been confirmed that the annual issuance of Harmony (ONE) has been capped at 3% and it cannot go beyond that point. On the other hand, Harmony (ONE) also burns the transaction fees as the transaction volumes grow higher to achieve zero-inflation.
As compared to the rest of the competitors, Harmony (ONE) is still new and needs a lot of time to gain more trust and rallying. At the time of publishing, the market capitalization of Harmony (ONE) sits at $250 million, which is very less as compared to its competitors.