Proof-of-Proof (PoP) Consensus: After creation, Hemi uses a custom consensus mechanism called Proof-of-Proof (PoP) to anchor its security to the Bitcoin blockchain. PoP miners periodically publish "keystone" Hemi block headers onto the Bitcoin network, and once confirmed, these transactions act as an anchor point. The PoP miners are rewarded with HEMI tokens for this process, which inherits Bitcoin's high security for the Hemi network.
Hemi Virtual Machine (hVM): The hVM is an enhanced Ethereum Virtual Machine (EVM) that has a full, indexed Bitcoin node embedded within it. This allows Hemi smart contracts to directly and natively access Bitcoin data, such as transactions, balances, and block headers, in real-time. This feature enables more sophisticated decentralized applications (dApps) that can react to live Bitcoin conditions without needing third-party bridges or trusted data oracles.
Tunnels for Cross-Chain Interoperability: The Hemi network uses "Tunnels," which are trust-minimized cross-chain bridges, to facilitate asset transfers between the Bitcoin, Ethereum, and Hemi networks. When a user deposits assets like BTC or ETH, they are locked on the native chain, and equivalent tokens are minted on the Hemi network. This allows users to access Bitcoin-based decentralized finance (DeFi).
HEMI Token Utility: The HEMI coin is central to the network's function and is used for several purposes after it has been created:
Network Fees: Paying gas fees for transactions and smart contract deployments.
#Staking and Security: HEMI can be staked to help secure the network's Proof-of-Proof (PoP) consensus mechanism and earn rewards.
Governance: Token holders can vote on protocol upgrades, parameter adjustments, and ecosystem proposals, allowing them to participate in the network's future.
Modular Architecture: Hemi's modular design allows developers to create custom Layer-3 blockchains (app-chains) that still benefit from Bitcoin's security. This extensibility allows for diverse use cases, including DeFi, NFT marketplaces, digital identity systems, and tokenization of real-world assets.
