One of the biggest hurdles to enterprise adoption of distributed ledger technology has been the need to interact directly with crypto and web3 on-chain systems.
Organizations considering Hedera Hashgraph for adoption may have had to grapple with the challenges of acquiring HBAR via crypto exchanges or creating web3 wallets as a large organization.
For some firms, managing digital wallets and paying transaction fees in tokens are often seen as compliance risks and burdens for operations.
TransAct, developed by The Hashgraph Group, aims to address this challenge by removing the need to interact with on-chain web3 wallets. Here’s how Hashgraph’s TransAct works and how it affects HBAR.
TransAct from Hashgraph allows organizations to transact on the Hedera network without using HBAR. Instead, network activity is invoiced monthly in currencies such as USD. These actions make distributed ledger technology feel like a standard web2 service, aligning with enterprise processes and reporting standards.
The ability to bypass direct interaction with crypto is particularly useful for certain institutions with strict regulatory or internal risk controls that are hard to bypass.
There are many organizations that are banned from holding crypto assets on their balance sheets, and many compliance teams see web3 wallet management as a security risk.
TransAct is able to eliminate such issues while still ensuring transparency and connection to Hedera, without losing out on business.
TransAct is offered as a SaaS (Software as a service) solution with enterprise-grade agreements, guaranteeing performance, reliability, and transparency.
Alongside compliance advantages, this predictable, scalable service model aligns Hedera with the needs of large-scale enterprise adoption.
In addition, TransAct provides a useful management dashboard that allows real-time monitoring of transactions and network spending. Enterprises gain visibility into usage patterns, while developers benefit from simplified integration tools. This combination is able to speed up and make adoption of Hedera DLT easier.
Removing the need for enterprises to hold or buy HBAR may seem like a risk for token adoption. Despite this, by enabling a broader set of institutions to build and transact on Hedera DLT, TransAct is able to increase overall network usage, which in turn can drive demand for HBAR at an infrastructure level.
Gas fees are still paid in HBAR behind the scenes, and the managed service ensures payments are handled seamlessly.
This way, TransAct can be seen as a new type of catalyst for HBAR adoption and usage, expanding the network’s volume and enterprise footprint without requiring enterprises themselves to engage directly with the crypto network’s core.
The aimed effect is to grow the Hedera ecosystem while aligning with the realities of enterprise compliance and treasury management.
By removing complicated points of entry into the Hedera ecosystem and offering a compliant, enterprise-ready gateway, TransAct positions Hedera as one of the most accessible distributed ledger platforms for business and government use.
Hashgraph hopes to bridge the gap between sometimes complex blockchain infrastructures and the demands of enterprises that need to follow strict protocols and make Hedera adoption smoother.
TransAct does more than simplify the enterprise experience; but helps pave the way for Hedera to become a foundational technology for applications worldwide.
The post Hashgraph’s TransAct and Its Role in Enterprise Adoption of Hedera first appeared on AllinCrypto.
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