One of the biggest advantages to using blockchain technology is the security of it. It is very difficult to hack. Where there is a weak link, however, is when moving crypto currencies to an exchange.
When one reads about a huge amount of coins vanishing or being hacked it is almost always when the money was on an exchange or in an open wallet.
Hshares recognizes the need for more security when moving money around so they devised a way to use a sidechain to run parallel to other chains like Bitcoin.This will make it easy to send money from one chain to another. As things stand now, blockchains cannot communicate with each other and need to use exchanges. With a sidechain they finally will be able to move around without an exchange
How does Hshare work?
Hshare, also called Hcash, is a DAO (Decentralized Autonomous Organization).
This acts as a way for blockchains to communicate with each other. In the case of a sidechain to transfer coins from one chain to another, a signal is sent from one block on one chain to another block on another giving the new block the hash information about the transaction. While doing this it also lets the main block know that the coins are there and that they aren’t being used somewhere else at the same time.
This immobilizes the coins and the information about the transaction is stored at the address on both chains where the movement took place.
The protocol for this to work is a mashup of Proof of Stake and Proof of Work. It works in the same way a PoF protocol works in the sense that blocks are mined by using computational power. In addition, though the mining goes to the witness who has not only the most computing power but the most tokens, so a Proof of Stake protocol.
This works to keep users engaged which makes validating blocks much faster than a standard Proof of Work protocol.
The biggest benefit for some to use Hshare is the fact that all information is anonymous. A major complaint about using cryptocurrencies to make payments is that whoever your paying knows exactly how much you are carrying in crypto.
With Hshares, just enough information is made available to validate the block without giving away any sensitive information. They will use zero information proofs to mask the identity of the sender and receiver through the use of advanced cryptography to verify transactions without sharing information about the transaction with miners.
The carrier of that information is the native token called Hcash. It will be used to pay for resource fees used in the network, such as deployment of smart contracts, operating and upgrading of systems (transaction fees, cross-chain data transfer fees).
Libertarians, cypherpunks and the unbanked have long been holding onto this idea of a system that can safely and anonymously run off the traditional financial grid. If this system proves to be viable, then it will pave the way for a truly decentralized crypto currency.