Blockchain technology that developed cryptocurrency is now the same technology that is allowing world to trade in illegal commodities, avoiding taxes, letting people maintain financial anonymity and remain resilient to authorized enquiry. While companies around the world are trying to take advantage of Bitcoin and Ethereum, a new kid has already entered the field named Hashgraph, to challenge the dominance of Blockchain.
Hashgraph is a Distributed Ledger Technology that fixes the flaws of Blockchain technology in terms of energy wastage, latency and proof of work. Contrary to Blockchain, which is a data structure systematized into a sequence of interconnected blocks, Hashgraph encompasses chain of events.
Contrasting Blockchain, Hashgraph can deliver the speed needed for multiplayer gaming, micro payments, stock market transactions, food and in-app purchases. Also, Blockchain demands trust to be operated but Hashgraph reduces the need to create trust by using traditional methods.
Hashgraph offers “consensus time-stamping” that wards off an individual from altering the consensus order of transactions. This means no one can influence the order of transactions. On the other hand, in Blockchain, when a miner selects an order in a block, orders can be delayed for future blocks and it can also stop users to enter into the system.
Blockchain can only process 5-6 transactions per second because each transaction requires consensus from all participants or nodes. While, most of the enterprises would prefer private Blockchain, which is speedy and doesn’t require consensus from all and this service is delivered by Hashgraph. Though, Blockchain is outstanding in terms of consensus-driven security and trust, the same attribute is also slowing it down.
Hashgraph is considered as an extended family of Blockchain technology. But the structure of Hashgraph is designed on FFM concept i.e. Fast, feeless and minerless. The technology of Hashgraph uses “gossip about gossip” protocols while Blockchain uses “gossip” protocol. This means that machines on the network that are registered in Hashgraph, disperse the transaction data and then authenticate while in “gossip” protocol, one has to depend on miners to solve the puzzle and then the transaction is validated. This empowers Hashgraph to manage 4,000 transactions per second.
Features of Hashgraph
Hashgraph is based on consensus and therefore it is faster than Blockchain and commanding of transactions is chronological in nature depending on the timestamp.
- Verifiable :
In Hashgraph, every event is propagated in the network, allowing its member to keep record of every member. As the graph advances, only recent events transaction information is available and it frees the space from previous events.
- Byzantine :
Hashgraph offers Byzantine agreement, which means that it forbids consensus to be distributed and a single member can hold up the consensus. This service is missing in Blockchain technology. This means that miners can take advantage of their hardware dominance to guide or freeze the development of the block.
- Authorization :
The difference between Blockchain and Hashgraph on the openness front is that Blockchain is open system while both of them are open source. Hashgraph is equipped with non-permissioned system, where only trustworthy fellows can join. This means that Hashgraph doesn’t need proof of work as only known members can access the network. Also, it is resilient to Denial of Service (DoS) attacks and other conflicting behavior of members.
Experts are hopeful that Hashgraph will turn out to be a promising technology as it has few limitations in comparison to Blockchain. However, it’s too early to forecast whether Hashgraph will dethrone Blockchain in coming future. If you have anything to share or an opinion to give, please comment in the section below.