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⭐ Features
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What is Hashgraph and The Differences Between Blockchain

  • George Shnurenko
    ⭐ Features

    Hashgraph is a new approach to processing and storing data that’s considered to be the main Blockchain’s rival

What is Hashgraph and The Differences Between Blockchain
Cover image via u.today

Although Blockchain is the leading technology in the world of crypto, it’s not the only method of data processing and storage. It was the first technological advance which served as the foundation for Bitcoin and altcoins, but it’s far from perfect. Now there’s a grandiose alternative coming– Hashgraph. What is it, and how it differs from the Blockchain?

What is Hashgraph technology?

If you’re more or less tech-savvy in the sphere of the Blockchain, you know that it uses consensus to record the transactions. Hashgraph uses a bit different approach: it implements a gossip protocol that works the following way:

  • every node of the system distributes signed information (this is called “events”) about the current and previous transactions to random neighbors

  • the neighbors process the information they receive and send it to other nodes

  • the process continues until all nodes get the new information.

The process doesn’t take much time due to a quick convergence property of this protocol.

The founder of this technology, Leemon Baird, uses Byzantine fault tolerance, which means the transaction becomes valid when more than 2/3 of nodes get aware of the transaction. It’s supposed that 1/3 nodes can work incorrectly or improperly. It is considered to be a safer environment than the distributed ledgers.

What is stored in each node in Hashgraph? The pieces of information processed are called ‘gossips’, and they are sent from one computer to two others, and so on. One of the main advantages of gossips is that they can weigh about one or two bits. That boosts the speed of transaction processing by over 250,000 TPS (for comparison – Bitcoin makes six transactions per second) depending on the bandwidth.

What cryptocurrency is Hashgraph?

After becoming aware of Hashgraph appearance, many Internet users start wondering what is Hashgraph coin. The fact is that Leemon Baird hasn’t introduced the proprietary coin yet, and he stays the sole rightful owner of his system– the control of who can use Hashgraph, and who cannot. However, his team is working upon The Hedera Hashgraph network that will introduce its own token, so if you wonder what is Hashgraph cryptocurrency like, visit the official website to get details.

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Until Hedera token appears on the market, Internet users are actively discussing what cryptocurrency is like Hashgraph, with some mentioning Swirdls, IOTA, and DAG-based tokens.

Hashgraph vs Blockchain: Whatthe difference?

if you still see no difference between Blockchain vs Hashgraph, let’s clear things up:

Blockchain

Hashgraph

Uses proof-of-stake and proof-of-work mechanisms of reaching consensus.

The platform leverages a new type of consensus mechanism, based on gossip about gossip and virtual voting

Relatively slow.

Processes transactions much faster.

Data is stored in a ledger on nodes directly involved in the consensus.

Data is stored on all computers of the network., which makes it impossible to hack.

Cryptocurrencies can be mined.

No mining will be used– the nodes will process transactions automatically with ‘gossips’ being about 1-2 bits.

Answering the question “What is Hashgraph?” Reddit explains that “Hedera Hashgraph is a superior consensus mechanism/data structure alternative to the Blockchain. A decentralized platform without servers.” Therefore, the principle of decentralization is one thing that unites Blockchain and the new platform.

Pros and cons of Hashgraph

What is a Hashgraph primary advantage? In fact, there are three aspects making it superb (and all are in question):

  1. It’s fast due to the gossip protocol that optimizes messages and minimizes communication overhead. Another reason for that is that Hashgraph is functioning in a private environment with limited access– that’s what conditions a high throughput. The participants of the permission-based environment are known beforehand which eliminates the vulnerability. But what will happen when/if Hashgraph becomes a public ledger?

  2. It’s fair– that’s conditioned by consensus time stamping. But the fact that ‘neighbors’ are chosen randomly poses a risk that some chosen networks are malicious and may stop sending the transactions. At the same time, every message can be sent without the intrusion of Byzantine nodes. Although it’s not a problem yet, the creators will need to solve this issue before releasing a public distributed ledger.

  3. It’s secure due to its asynchronous nature. However, the specialists still wonder what is the algorithm terminating the consensus protocol putting the efficiency of random approach in doubt.

Will Hashgraph replace Blockchain?

Being revolutionary in some aspects, Hashgraph is an efficient consensus protocol that can help us reach a very high speed of transaction processing and enjoy higher security. Being used in private settings, this platform totally justifies author’s claims about its safety and speed. But what about public use? There’s a probability that Hashgraph will face the same problems as public Blockchains.

So before googling “what is a good Hashgraph crypto” don’t forget that the Blockchain technology has a lot of room for development, and public Blockchain creators introduce innovative protocols permanently improving their products.

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About the author

George Shnurenko is a Bitcoin and cryptocurrency enthusiast, financial analyst and writer. He's majoring in history but he believes that the digital currency which has taken the world by storm will bring about change to all us humans. 

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📰 News
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Top Bitcoin Miner Warns – Bitcoin’s Privacy Features Are ‘Quite Poor’

  • Yuri Molchan
    📰 News

    The head of a major Bitcoin mining pool says that Bitcoin privacy is weak and must be improved to prevent BTC from avoiding governments’ clampdown

Top Bitcoin Miner Warns – Bitcoin’s Privacy Features Are ‘Quite Poor’
Cover image via www.123rf.com

The CEO of one of the largest BTC mining pools, Poolin, has recently stated in an interview that Bitcoin privacy has to be improved. The current privacy features make BTC vulnerable to potential regulatory bolt tightening, says he, as reported by Forbes.

The Poolin mining company was set up by several former employees of BTC.com – a world’s major mining pool, a subsidiary of Bitmain. Among them was the Poolin’s current CEO Kevin Pan.

“Bitcoin’s privacy features are quite poor”

Over the past years, developers have suggested several ways to improve Bitcoin’s privacy. However, those were rejected by the community, since they would hard such major things as security, scalability, etc.

A good example here is Confidential Transactions that were among those suggestions. They disguise the amount of BTC sent in transactions. However, the integration of it was rejected, since it could have had a negative impact on the public verifiability of the present BTC supply.

Kevin Pan says that privacy is much more vital for a crypto asset development than scalability. Pan says:

“There is no other big question if the privacy issue is solved.”

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Governments may start controlling BTC miners

The company CEO believes that in theory, authorities or law-enforcement agencies may start telling miners to block certain address from receiving funds or sending them. However, in that case that would have to be 51 percent of the BTC network.

Pan believes that unless a solution to this problem is found soon, governments will get a chance to prevent transactions to certain addresses from happenning.

“What is more troublesome now is if government or law enforcement departments begin to create a blacklist of transaction addresses, it will make certain transactions unable to be packaged.”

“In fact, these can be done. But if there is privacy, you can't know who the address belongs to, and you can't determine how much the amount is, and there is no way to control the currency system. So for me, Bitcoin is basically no problem if the issue of privacy can be solved.”

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China plans to clamp down on BTC miners

Previously, U.Today reported that Inner Mongolia, an autonomous region of China, plans to ban all the numerous mining pools located there soon.

Since this region is one of the biggest local crypto mining areas, some believe that China is about to ban mining of all cryptocurrencies ahead of the so-called ‘China Coin’ launch.

Do you think that poor Bitcoin’s privacy features could indeed bring down regulatory control over BTC one day? Feel free to share your view in the comments section!

In this Telegram channel you’ll find fresh news, interviews, infographics, forecasts & other helpful stuff. Join U.Today's channel.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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