Hello guys,

Today I would like to talk about one interesting project from my point of view - Holochain. ( https://holochain.org/ )

Standard disclaimer: this is not financial advice, don't trust anyone on the internet, make your own due diligence. 


Let's start with basic definitions. Holochain represents low-level protocol for Holo apps. Holo is the dapp(or happ) which may represent initial currency app on the holochain. Holochain has completely (!) new revolution architecture which makes it super scalable and extremely efficient. Actually, it's more interesting than everything I have seen before (more details later). For easier understanding, we can cross analogies with Blockchain and Bitcoin, so Blockchain is the core protocol and Bitcoin is the first currency case of the blockchain, the same way Holochain is the core protocol, Holo is the first currency use case of Holochain.

Holochain protocol gives the ability to host applications decentralized way on many individual nodes and make it scalable. Basically Holo app(or Happ) is an application hosted on holochain. 


I will not go deep into the details, but I want to tell the main idea. 

Why does the protocol deserve attention? - Very simple. There is no need the central place to store all the information and there is no consensus. The information is kept in the distributed hash tables and each node keeps its own data and also some number of another node (selected by the application developer) holds the hash chain to validate the data of the node.

What does it mean? There is no bottleneck compare to all blockchains, so there is no upper limit in transactions and the system is completely decentralized and very efficient. You can run the application without necessarily to keep all it’s data on your local computer and only download what you really need! 

Check the video:

Sources of demand:

  • People need to buy Holo fuel to pay for the hosting of their applications.

Actually, holochain does not limit developers to use some particular currency in their apps, so they may create their own fuels(with their own economies) or integrate dinosaur solutions like Bitcoin in their apps. But for scalable applications it will not make much sense. Basically, I am absolutely sure that because of simple integration in the holo apps and effective structure, Holo fuel will be used as the native currency of holochain ecosystem and people will use to keep and transfer the value.

Sources of supply:

Initial 75% of supply is sold during the ico, 25% belongs to Holo org.

 But the structure of the supply can be tricky in the holo because of:

  • The system of reserved accounts.

It is not the clear system at the moment, but some way or another there will be some reserve accounts which sometimes will issue additional holo fuel and buy it back as well. So such account can go into minus and then the minus also can be covered because holo hosts may sell earned holo fuel to the account at some flexible price(algo not clear yet, but most likely it not influence much at the price because of LIFO system which may be used). In fact, I think it only brings complexity to the system and does not make any sense since I am absolutely sure the market will beat all such artificial efforts to reduce volatility for the asset.

  • Borrowing of holo fuel for holo nodes

Nodes will be able to issue holo fuel like a debt based on the 3-month earnings (reputation of the node) and some verification system(not clear yet). So the price for such fuel will be based on the ability for issuing node to pay out “the debt”. To be honest, have no idea how it will work, but 3 months earning at the start is close to nothing because organic demand for hosting will not be super huge at the start and not all nodes will issue fuel simultaneously. 

Description of marketing fuck ups of Holo (which make you feel com fused): 

• There is no coin

 There is really no coin, but blockchain is just accounting tool, a coin is just definition of accounting unit. In the case accounting unit is holo fuel, just the accounting system is different. 

The sum of all fuel every time equals to 0, because if someone has plus, someone has minus. Initial distribution will be in minus for Holo organization and will be covered from tiny % from transaction fees .(for simplification of understanding you may think that some fuel will be removed from circulation during the time). 

• Holoports (hardware)

Holoports are not necessary for hosting of Holo apps, so their role is just to decentralize initial computation power to make the network reliable. Dfinity also had the idea to provide hardware. It's fine and meaningful step. 

Sources of risk:

  • I don't know how the "supply breath" will work in the reality. We need to track it very accurate since there may be a source of fundamental risk. But for the nearest 1-1.5 year I think there is no such risk.
  • Innovation gap risk. Basically, the system is very very innovative, so every time there is a risk that a team will not be able to realize all the promises. But if we will take into account the alpha version on the github, all the details about the team etc personally, I think the risk is the lowest possible compared to all the many projects I have seen before.


Very interesting, revolution project which is completely different from anything represented at the market nowadays. But we need to track some important points in the future.

I don’t like stamps, but for people who need extra simplification for understanding: 

It's like dfinity, but better and much much much cheaper in capitalization.

Subscribe to my channel and don't miss new reviews :) https://t.me/chainhedge