Ok, maybe new is the wrong word. The cryptocurrency Harmony (ONE) has actually been around for two years now and yet still, very people have heard of it. Recently, Harmony has exploded in value, skyrocketing from $0.07 per coin at the beginning of the week to a new all-time high of $0.17. The rally has seen its market cap grow from $666 million last Sunday to $1.5 billion today – an increase of over 200%.
So what is Harmony?
Harmony was launched in March 2019 as part of the Binance Launchpad initial exchange offering (IEO) with the aim of creating a blockchain that offers “decentralization at scale”. In the run-up to the launch, Harmony saw a significant amount of investment from VC firms like Silicon Valley’s Consensus Capital, Hong Kong’s Lemniscap, and several others, giving the project strong backing and legitimacy.
Since then, the project has been rather quiet, slowing building and developing its network while its market cap hovered steadily between $20-$30 million. Now, it would seem, the work has paid off and Harmony is finally having its day in the cryptoverse.
Harmony’s core function is to serve as a platform for data sharing both fungible and non-fungible tokens (NFTs). Back in 2019, NFTs were still a very new concept and few people had found ways to capitalize on the technology but today, they’re all the rage – a clear indication of why Harmony is suddenly doing so well.
To help drive its core function, Harmony was designed to have both low latency and low fees, something that Ethereum and other token-hosting networks still struggle with. To tackle the problem of scalability, Harmony has integrated deep-sharding technology into its design which provides a method of conducting mass validation rather than the slow, individual block confirmations of proof-of-work (PoW).