Hashgraph Vs Blockchain

Blockchain or Hashgraph — Which is the best form of Distributed Ledger Technology?

Well read this blog and you decide yourself!

The blockchain technology was first implemented when the first known Cryptocurrency, Bitcoin came into being in the year 2008. It was purely based on Blockchain technology.

They do have a lot of positive effects compared to other technologies that we have right now.

But the Hashgraph version of the Distributed Ledger Technology was founded by Leemon Baird with better benefits as compared to the Blockchain technology.

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Some of them include their security features, fairness, cost, and speed!
We will be dealing with all the details below. We will also be mentioning about a special type of Hashgraph named the Hadera Hashgraph.

Keep reading!

Hashgraph Vs. Blockchain: An Overview

Also, Blockchain technology is more mainstream or open to the public, whereas that’s not the case with Hashgraph. An exception of the Hadera Hashgraph is there, for the more public version of the Hashgraph algorithm.

Blockchain Technology

Blockchain is based on distributed ledger technology. It follows the pattern of a decentralized platform, where there will be no other third party to handle the operations associated with them.

The data quality is maintained by database replication and computational trust.

There are different types of distributed ledgers out there. But the thing that makes Blockchain different from all others is its structure. In a Blockchain, data are organized in the form of blocks.

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These blocks are then linked from peer to peer using the security mechanism of cryptography.

Another feature of the blockchain is that it only allows adding data to the database. Changing or deleting the present data is almost impossible. Thus, Blockchain is a continuously growing list of records.

This feature makes it perfectly fit for managing records, transactions, tracing assets, and voting.

Bitcoin, the first cryptocurrency is the one that introduced the concept of Blockchain technology to the public.

Almost all the sectors like Government, Businesses, and Economists are planning to introduce the same technology in their own respective areas.

Some of its real-time examples include in the sectors like supply chain management, payments, and identity management.

Hashgraph Technology

Hashgraph is also a different form of distributed ledger technology. It was developed by a man named Leemon Baird, who is the co-founder as well as the present CTO (Chief Technology Officer) of Swirlds Corporation.

Hashgraph technology work almost in the same format as that of a Blockchain.

Moreover, it provides benefits like decentralization and distribution.

Also, the security of the system is high, but it follows a method of Cryptographic hashing.

Another major benefit of Hashgraph technology over the Blockchain is its high transaction speed.

For example, a Bitcoin can support only up to 5 transactions per second and some altcoins like Ethereum allows up to 15 transactions per second. But, Hashgraphs can process thousands of transactions per second. It is estimated that they can perform up to 5,00,000 transactions per second!

The hashgraph is based mainly on two techniques which are given below:

Gossip about Gossip.

Virtual Voting.

Gossip About Gossip

The Gossip about Gossip method can be explained in simple terms as given below.

Consider five different members, namely, A, B, C, D, and E.

When each member performs a primary transaction, it is considered as an ‘event’.

Here, each member calls another member at random and the two people involved will be sharing their transaction history.

For instance, the member E can call another member C, and shares the transaction information of E with C. Such type of actions can occur, between different members in the network, either constantly or whenever required.

Each event holds a record of all the previous blocks. So when one member learns about a new piece of information, the same information quickly passes to other members, when they come in contact with the same member.

Virtual Voting

In Gossip about Gossip method, each node that comes into contact with each other already knows about what the other node knows, and this allows the other node to predict what the other node would vote for, which results in virtual voting or electronic voting.

In virtual voting, you actually need to reach an agreement on the order of transactions. The events are divided into various rounds. The Hashgraph algorithm will be having an exact mathematical solution for each and every round created.

For example, imagine that around has ten events as a whole. So each member votes for the event to be qualified next. The presently running around with the majority of votes will be the qualified one and the transactions related with this round would be qualified!

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Conclusion

Blockchains and Hashgraphs are two different forms of Distributed Ledger Technology.

Blockchain mainly deals with a single chain of blocks with benefits like validated, secure and distributed agreement between the peers. Some of the major platforms that make use of this technology include Bitcoin and other altcoins.

Whereas, the Hashgraph follows a patented algorithm so that the transactions are more secure and fast at the same time.

Both Hashgraph and Blockchain has its own advantages and disadvantages as mentioned above. And more versions of the distributed ledger technology is expected to be introduced in the near future.

Well, let’s wait and see…!