> ## Documentation Index
> Fetch the complete documentation index at: https://hedera-0c6e0218-fix-asset-tokenization-docs.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Why Build on Hedera?

> Performance, predictability, and sustainability — built for production.

Hedera is built for applications where correctness, speed, and cost matter. If you've been frustrated by slow finality, unpredictable gas fees, or lack of enterprise governance on other networks, Hedera was designed to solve exactly those problems.

## Performance and Finality

Hedera delivers **3–5 second absolute finality** — not probabilistic. Once a transaction is consensus-stamped, it cannot be reversed or reorganized.

* **\~10,000 TPS** on the public mainnet
* **No block reorgs** — Hashgraph consensus is deterministic
* Consistent performance under load — no throughput degradation during high-traffic periods

<Tip>
  Unlike probabilistic finality on Ethereum (where you typically wait for 12+ confirmations), Hedera's finality is absolute. A transaction confirmed at second 4 stays confirmed.
</Tip>

## Predictable, Low Fees

Hedera fees are **fixed in USD** and paid in HBAR at the current exchange rate. There are no gas auctions.

* Average transaction fee: **\~\$0.0001**
* Fees are set by the Hedera Governing Council and change infrequently
* No fee spikes during network congestion — fees don't fluctuate with demand
* Smart contract execution costs are predictable and published in the [fee schedule](/learn/networks/mainnet/fees)

This makes Hedera practical for high-volume applications (millions of transactions per month) where gas costs would be prohibitive on other networks.

## Enterprise-Grade Governance

Hedera is governed by the **Hedera Governing Council** — up to 39 global enterprises serving rotating, term-limited seats:

* **Current members include:** Google, IBM, Boeing, LG Electronics, Deutsche Telekom, Ubisoft, Avery Dennison, ServiceNow, and others
* No single member controls more than one seat — no single entity can dictate network direction
* All node software is open-source via **Hiero**, a Linux Foundation project
* Published roadmap and transparent governance decisions

This governance model makes Hedera suitable for regulated industries and enterprise procurement requirements where vendor lock-in and single-point-of-control are deal-breakers.

## Sustainability

* **Carbon-negative certified** — Hedera offsets more carbon than it produces, verified by independent auditors annually
* **Proof-of-stake consensus** — no energy-intensive mining
* One of the most energy-efficient public networks in operation

## How Hedera Compares

|                    | Hedera                   | Ethereum                 | Solana                 |
| ------------------ | ------------------------ | ------------------------ | ---------------------- |
| **Finality**       | 3–5s (absolute)          | \~13 min (probabilistic) | \~0.4s (probabilistic) |
| **TPS**            | \~10,000                 | \~15–30                  | \~65,000               |
| **Avg Fee**        | \~\$0.0001               | Variable (gas auction)   | \~\$0.00025            |
| **Governance**     | Council (39 enterprises) | Decentralized            | Solana Foundation      |
| **EVM Compatible** | Yes (+ native services)  | Native                   | No                     |
| **Carbon**         | Negative                 | Neutral (post-Merge)     | Not certified          |
| **Finality Type**  | Absolute (ABFT)          | Probabilistic            | Probabilistic          |

## What Gets Built on Hedera

<CardGroup cols={3}>
  <Card title="Tokenization" icon="coins">
    Real-world asset tokenization, stablecoins, loyalty points, and carbon credits using Hedera Token Service.
  </Card>

  <Card title="Supply Chain" icon="truck">
    Verifiable provenance tracking and audit trails using Hedera Consensus Service.
  </Card>

  <Card title="AI / Data Integrity" icon="brain">
    Timestamped, tamper-proof logs of AI model inputs and outputs for auditability.
  </Card>

  <Card title="DeFi" icon="chart-line">
    AMMs, lending protocols, and yield strategies using EVM-compatible smart contracts.
  </Card>

  <Card title="NFTs" icon="image">
    NFT minting and marketplaces with native royalty enforcement via HTS.
  </Card>

  <Card title="Enterprise Messaging" icon="envelope">
    Ordered, verifiable event streams for compliance, audit, and cross-org coordination.
  </Card>
</CardGroup>

## Ready to Build?

<Card horizontal title="Choose your development path →" href="/learn/getting-started/choose-your-path" />

## Frequently Asked Questions

<AccordionGroup>
  <Accordion title="How does Hedera keep fees predictable?">
    Fees on Hedera are set by the Governing Council and denominated in USD. Unlike gas auctions (where fees spike when the network is busy), Hedera fees are fixed per transaction type regardless of network load. The HBAR amount you pay fluctuates with the HBAR/USD exchange rate, but the USD cost stays stable.
  </Accordion>

  <Accordion title="Is absolute finality important for my application?">
    It depends on your use case. For financial applications, tokenization, or any scenario where transaction reversal is unacceptable, absolute finality matters enormously. For applications that already handle eventual consistency (like most web2 apps), probabilistic finality is often acceptable. If you need settlement guarantees, Hedera's ABFT finality is the right choice.
  </Accordion>

  <Accordion title="What does 'open-source via Hiero' mean?">
    Hiero is a Linux Foundation project that maintains all Hedera SDKs and the node software (Hedera Services). The source code is publicly available, and contributions are welcome from the community. This means Hedera is not proprietary — it cannot be shut down or held hostage by a single company.
  </Accordion>

  <Accordion title="Is Hedera suitable for regulated industries?">
    Yes. The Governing Council model, KYC/KYB-capable token features (via HTS token management keys), and enterprise-grade SLAs make Hedera a preferred network for financial services, healthcare data, and government applications. Several central bank digital currency (CBDC) pilots have been built on Hedera.
  </Accordion>
</AccordionGroup>