What is Hedera (HBAR)? A simple guide for India
How Hedera works, who runs it (including Tata Communications and Wipro), what HBAR is used for, its risks, and how Indians can buy it and pay tax on it.
Hedera is a public network for payments, tokens and business records, and HBAR is the coin that powers it. It often gets called a blockchain, but it is built differently, and it is run in an unusual way: by a council of large companies, two of which are Indian. This guide explains how it works in plain language, what HBAR is for, and what to know before you buy it in India.
Key takeaways
- Hedera went live in 2019. It uses "hashgraph", a way of reaching agreement that does not use blocks or mining.
- It is governed by a council of up to 39 organisations, including Google, IBM, Boeing, Tata Communications and Wipro.
- HBAR pays network fees, is staked to secure the network, and has a fixed maximum supply of 50 billion.
- Fees are set in US dollars, so a simple transfer costs a tiny fraction of a cent.
- In India HBAR is taxed like any other crypto: 30% on gains plus 1% TDS on sales.
Live price: ₹11.32 ($0.1179). See the full chart on Hedera price in INR.
Hashgraph in plain words
Most blockchains bundle transactions into blocks and add one block at a time to a chain. Someone has to win the right to add each block, through mining on Bitcoin or through staking on Ethereum.
Hedera does it differently. Computers on the network, called nodes, keep telling each other about the transactions they have heard of, and also about who told them what and when. This is called "gossip about gossip". From that shared history every node can work out, on its own, the order in which transactions arrived. The result is a structure called a graph rather than a single chain.
Two practical results matter for users:
- Finality in seconds. Once Hedera confirms a payment it is final. There is no waiting for extra blocks.
- Strong fault tolerance. The method is designed so the network keeps agreeing on the correct order even if up to a third of nodes misbehave. The technical name is asynchronous Byzantine fault tolerance (aBFT).
The system was invented by computer scientist Leemon Baird, who co-founded Hedera with Mance Harmon. The network uses a form of proof of stake: HBAR holders can stake their coins to nodes, which gives those nodes more weight in reaching agreement.
Who runs Hedera: the Governing Council
This is the part that makes Hedera different from Bitcoin or Ethereum. Hedera is governed by a council of up to 39 organisations from different industries and countries. Members serve terms of three years and can serve at most two terms in a row. Past and present members include:
| Member | Sector |
|---|---|
| Technology | |
| IBM | Technology |
| Tata Communications | Telecom (India) |
| Wipro | IT services (India) |
| Boeing | Aerospace |
| Deutsche Telekom | Telecom |
| LG Electronics | Electronics |
| Nomura | Finance |
| Dentons and DLA Piper | Law firms |
| University College London | Education |
Supporters say this gives stability and makes big companies more comfortable building on Hedera. Critics say it is less decentralised than networks where anyone can run a validator. Both points are fair, and which one matters more depends on why you are interested.
In 2022 the council voted to buy the hashgraph patents and open-source the code. In September 2024 the code was handed to the Linux Foundation as a project called Hiero, released under the Apache open-source licence.
What HBAR is used for
- Paying fees. Every transfer, smart contract call or token action on Hedera costs a small fee paid in HBAR.
- Staking. Holders can stake HBAR to a node to help secure the network and earn rewards when rewards are on offer. Your coins stay in your own account.
- Moving value. HBAR can be sent from person to person like other coins.
Hedera fees are fixed in US dollars and paid in HBAR at the current rate. A simple HBAR transfer costs about $0.0001. This matters for businesses: they can plan costs without worrying that fees will jump when the coin's price rises.
The maximum supply is 50 billion HBAR. About 43.8 billion were in circulation in September 2026, so most coins are already out. That limits how much new supply can hit the market, which is one of the points covered in our token unlock guide.
What is built on Hedera
Hedera's pitch is to businesses rather than to meme coin traders. Common uses include tracking goods through supply chains, digital identity, carbon credit records, tokenised funds and payments. A recent example is IDTrust, an identity product for people and AI agents, which was listed in the IBM Cloud Catalog in September 2026 and sent HBAR up about 27% in a day (our report).
Keep one thing in mind: a big company using Hedera does not mean it buys or holds HBAR. Many enterprise apps pay only tiny fees, so real usage and HBAR's price do not always move together.
Risks to know
- Price swings. HBAR hit a record of $0.5692 in September 2021 and was still about 79% below that in September 2026. Sharp rallies on partnership news have often faded.
- Competition. Many networks chase the same business users, including Ethereum, Solana, Avalanche and private bank chains.
- Governance. A council of companies can change fees, rewards and rules. That is steady, but it is also a small group.
- Regulation. India has no crypto law yet, so rules for all coins could change.
How to buy HBAR in India
- Pick an exchange registered with the Financial Intelligence Unit (FIU-IND). See our FIU-registered exchanges list.
- Finish KYC with your PAN and Aadhaar.
- Add rupees by UPI or bank transfer and buy HBAR, either on the INR market or on the USDT market.
- If you want to hold it yourself, withdraw to a wallet that supports the Hedera network. Hedera accounts look like 0.0.12345, so double-check the address and any memo the exchange asks for.
Tax on HBAR in India
HBAR is a virtual digital asset under Indian tax law. Profits are taxed at a flat 30% plus cess, whatever your income slab and however long you held it. 1% TDS is deducted when you sell above the limits, and losses cannot be set off against other gains. Staking rewards are generally treated as income when you receive them; check with a tax adviser for your case. Our crypto tax calculator works out the numbers.
FAQ
Is Hedera a blockchain?
Not in the strict sense. It uses a hashgraph, which records transactions in a graph instead of a chain of blocks, but it does the same job as a blockchain.
Which Indian companies are on the Hedera council?
Tata Communications and Wipro have both been members of the Hedera Governing Council.
What is the maximum supply of HBAR?
50 billion HBAR. About 43.8 billion were in circulation in September 2026.
Is HBAR legal in India?
Yes. Buying, holding and selling crypto such as HBAR is legal in India. It is taxed at 30% on gains, and you should use an FIU-registered exchange.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
