A local distributed ledger platform is getting a boost to its governing body, a move that has the potential to generate hundreds of millions for the company over the next few years.
Google announced it would be the newest member joining the Hedera Governing Council of Richardson-based Hedera Hashgraph, a blockchain-adjacent, enterprise-ready platform. The announcement was made by Google Cloud Developer Advocate Allen Day in a blog post.
After the announcement, Hedera’s HBAR cryptocurrency increased in value by $0.05 – a first single-increase boost since the company’s launch of the platform last year. According to AMBCrypto.com, HBAR registered a market cap of $160 million and a 24-hour trading volume of $46.35 million
“As we continue to evolve our infrastructure, we’re excited to expand our work with Google Cloud to now make [distributed ledger technology] even more readily available for our community members, no matter their size or industry,” said Atul Mahamuni, SVP of Products for Hedera, in a prepared statement.
Created about a year ago, the Hedera council is currently made up of 11 companies from a range of industries, including Boeing, IBM and Deutsche Telekom. However, Hedera has noted that the council could be expanded in the future to include nearly 40 members.
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Council members serve for three-year terms, with a max of two consecutive terms. It serves to help govern changes to Hedera’s software and setting policies, as well as providing stability and scalability for companies using the platform.
As part of the announcement, Hedera said Google Cloud will become its preferred cloud provider. Google’s role on the council will see it operating a node of the decentralized platform, providing ledger data and analytics. A recent report by research firm Fundstrat noted that Google joining the governing council indicates future success, and predicts Hedera could generate more than $1.9 billion in value by 2024.
“We’re inspired by what Hedera has accomplished to date, and look forward to providing the infrastructure and technologies to support what’s possible with distributed ledger technology,” Day wrote.
Hedera Hashgraph was founded in 2018 by Leemon Baird and Mance Harmon, and launched its distributed ledger platform in September of last year. According to Crunchbase.com, the company has raised about $118 million of five rounds of initial coin offerings. Hedera is backed by BlockTower Capital and Digital Currency Group, among others.
The company’s open public network uses algorithms to help enterprises and developers create online spaces and applications. It also can process about 10,000 transactions per second, with an average fee of about $0.0001. Hedera has also made its algorithm open for review, along with its LLC agreement.
“This is about developing solutions that drive real business value,” Mahamuni said in a prepared statement.
