Hedera (HBAR) sustainability report

Hedera is present on the following networks: Hedera Hbar.

The Hedera network operates on a distinctive Hashgraph consensus algorithm, a system based on a Directed Acyclic Graph (DAG) that fundamentally differs from traditional blockchain structures. This innovative approach is secured by Asynchronous Byzantine Fault Tolerance (aBFT), which allows the network to maintain its integrity and functionality even if up to one-third of its nodes act maliciously, thereby ensuring robust security, high fault tolerance, and exceptional stability. Central to Hedera's efficiency is its 'Gossip about Gossip' protocol, a communication mechanism where nodes not only share transaction information but also details of previous gossip events. This method enables each node to rapidly acquire a comprehensive understanding of the entire network's state, significantly boosting communication efficiency and minimizing data latency across the distributed ledger. Furthermore, Hedera employs a unique 'Virtual Voting' system. Unlike networks that rely on traditional miners or stakers, Hedera nodes achieve consensus by analyzing the historical 'gossip' information and simulating votes based on the chronological order and frequency of received transactions. This virtual voting eliminates the necessity for explicit voting messages, which in turn reduces network congestion and dramatically accelerates the consensus process. A crucial advantage of this mechanism is the attainment of deterministic finality. Once consensus is reached, transactions are instantly and irrevocably confirmed, becoming irreversible within a matter of seconds. This feature makes Hedera exceptionally well-suited for applications that demand rapid and unchangeable transaction confirmations. To further enhance network security and resilience, Hedera also integrates a staking mechanism, where HBAR token holders can stake their tokens to support validator nodes. This engagement not only fortifies the network's security posture but also encourages long-term participation in its consensus operations, aligning the interests of token holders with the network's overall health and stability.

Hedera is present on the following networks: Hedera Hbar.

The Hedera network employs a comprehensive set of incentive mechanisms and a meticulously structured fee model to foster network participation and ensure its operational integrity, particularly catering to enterprise-grade applications. At the core of its incentive structure are staking rewards for nodes. Node operators are compensated with HBAR tokens for their vital roles in securing the network and processing transactions, thereby motivating them to maintain honest operations and contribute to overall network stability. Beyond active node operation, HBAR holders can also participate by staking their tokens to support these nodes, earning rewards in return. While the specific structure of these user staking rewards may evolve with network growth, they currently serve as an additional encouragement for token holders to engage with the network's operations. Furthermore, Hedera distinguishes itself by offering service-based node rewards. Nodes receive compensation tailored to the specific services they provide, which include reaching consensus and preserving transaction order, storing data on the Hedera network through file storage services, and supporting the execution of smart contracts for decentralized applications. This granular reward system ensures that all critical functions contributing to the network's utility are appropriately incentivized. Regarding applicable fees, Hedera is designed with a fixed and predictable transaction fee structure. This transparency in costs is a significant advantage for users, especially appealing to enterprise applications that require stable and foreseeable operational expenses. All transaction fees, collected in HBAR, are systematically distributed to the network nodes as rewards. This allocation model is fundamental in reinforcing the nodes' crucial role in maintaining network integrity, efficiently processing transactions, and ensuring the continuous, reliable operation of the Hedera network.

Hedera is present on the following networks: Hedera Hbar.

The methodology for assessing the Hedera network's energy consumption involves a comprehensive, multi-faceted approach. To begin, the total energy consumption of the Hedera network is calculated as a foundational step. This calculation is a prerequisite for determining the energy footprint of any crypto-asset or token operating on it, where a fraction of the network's total energy consumption is attributed to the specific token based on its activity within the network. The process aggregates energy consumption data from various components that constitute the network's infrastructure. To accurately identify all relevant implementations of assets in scope, the Functionally Fungible Group Digital Token Identifier (FFG DTI) is utilized whenever available. The mappings provided by the Digital Token Identifier Foundation are updated regularly, ensuring the most current and precise data is used for calculations. The overall methodology relies on several key assumptions, particularly concerning the hardware employed within the network and the number of participating entities. These assumptions undergo rigorous verification efforts, cross-referenced with empirical data to ensure their accuracy. A core principle guiding these assumptions is that network participants are presumed to act largely in an economically rational manner. Furthermore, adhering to a precautionary principle, conservative estimates are applied whenever there is uncertainty, meaning that higher estimates for potential adverse impacts are chosen to err on the side of caution. This meticulous approach aims to provide a robust and realistic assessment of the energy consumption associated with the Hedera network.

Hedera is present on the following networks: Hedera Hbar.

The methodologies for determining the key energy sources and the proportion of renewable energy utilized by the Hedera network are robust and multi-layered. A primary step involves identifying the geographical locations of the network's nodes. This crucial data is gathered through a combination of publicly available information sites, proprietary in-house crawlers, and various open-source crawling tools. Accurate geo-location of nodes is fundamental, as it allows for the subsequent assessment of the energy mix supporting these operations. In instances where specific geographic distribution data for the nodes is unavailable, a practical approach involves leveraging reference networks. These reference networks are carefully chosen based on their comparability to Hedera in terms of their incentive structures and underlying consensus mechanisms, ensuring that the inferred energy profile remains relevant. Once the geo-information is obtained, it is integrated with extensive public data from sources like Our World in Data, which provides comprehensive statistics on electricity generation, including the share of renewables. This integration allows for a precise calculation of the proportion of renewable energy powering the network. Furthermore, a critical metric derived from this analysis is the energy intensity, which quantifies the marginal energy cost associated with processing one additional transaction on the network. This provides an incremental measure of the network's energy efficiency. Key data sources informing these calculations include Ember (2025) and the Energy Institute – Statistical Review of World Energy (2024), both of which are processed significantly by Our World in Data to generate datasets such as the "Share of electricity generated by renewables." For further details on these energy statistics, refer to Share of electricity generated by renewables - Our World in Data.

Hedera is present on the following networks: Hedera Hbar.

The methodologies employed to ascertain the Greenhouse Gas (GHG) emissions associated with the Hedera network mirror the rigorous approach used for energy consumption, focusing on identifying the environmental impact. The initial and critical step involves precisely determining the geographical locations of the network's operational nodes. This data collection process relies on an amalgamation of public information sites, sophisticated open-source crawlers, and specialized in-house crawlers designed to pinpoint node locations effectively. The importance of accurate geographical data stems from the direct correlation between location and the carbon intensity of the local electricity grid. Should specific geographic details for the nodes be unobtainable, the methodology permits the use of reference networks. These are selected based on their structural similarities to Hedera, particularly in their incentivization frameworks and consensus mechanisms, ensuring that the estimations remain contextually relevant. The collected geo-information is then systematically merged with public datasets, most notably from Our World in Data. This integration facilitates the calculation of GHG emissions by correlating node locations with the carbon intensity of electricity generation in those regions. A significant metric derived from this analysis is the GHG intensity, which quantifies the marginal emission produced for each additional transaction processed on the network. This metric offers a granular understanding of the environmental footprint per unit of activity. The underlying data for these calculations is drawn from authoritative sources such as Ember (2025) and the Energy Institute – Statistical Review of World Energy (2024), extensively processed by Our World in Data to produce datasets like the "Carbon intensity of electricity generation." More comprehensive information regarding these emissions statistics is available at Carbon intensity of electricity generation - Our World in Data, which is licensed under CC BY 4.0.