Blockchain vs Hedera Hashgraph
Having started out as a foundation for cryptocurrencies, DLT has made significant headway over the past decade, spanning a number of other areas. Many people believe that the term DLT and Blockchain are the same thing, but this is a misconception. Blockchain is just the most famous example of this technology. However, now a competitor Hashgraph has appeared in the digital world.
Blockchains appeared much earlier and faced some serious difficulties that hinder its development. Hashgraph, in turn, is a fairly new technology that promises to solve almost all the “shortcomings” of the blockchain and open up completely new opportunities to the world.
Blockchain: Limitations of Smart Contracts
Smart Contracts are computer protocols or, more simply, computer code.
The code is used to enter all the terms of the contract concluded between the parties to the transaction into the blockchain. The obligations of the participants are provided in the intellectual contract in the form of “if-then” (for example: “if Party A transfers money, then Party B transfers the rights to the apartment”). There can be two or more participants, and they can be individuals or organizations. Once these conditions are met, the smart contract independently executes the transaction and guarantees that the agreement will be respected.
And there is a big difficulty in the fact that smart contracts that operate on the blockchain network are absolutely unchanged under any circumstances. That is, if you notice some error on the part of someone and the participants of the transaction or in the code itself, you will not be able to do anything. There is only one option left: close the current smart contract and deploy a completely new one.
Such restrictions create great difficulties and confound the adaptation of technologies. Hedera Hashgraph can solve this problem. Let’s find out what their fundamental difference is and what is important for us in this.
What is Blockchain?
Blockchain is the latest method of storing information about contracts or transactions in digital form. The revolutionary nature of blockchain technology is that it can be applied to any type of data. And the registry of this data will be stored in a large number of places, and not on a single server that hackers can hack. Thanks to thousands of data storage locations, we can talk about absolute data security.
The technology is as open as possible to all participants. Each of them can get acquainted with the current version of the information register at any time, which is always as transparent and accessible as possible. The data chain in the blockchain cannot be tampered with by anyone. The chain can only add new blocks without deleting all the previous ones.
All this is made possible by updating the data registry on all remote computers in the same minute. Therefore, it is quite logical that such a data storage system is safe and is not afraid of hacker attacks.
Until recently, blockchain was the only format for implementing distributed ledger technology, without any alternatives. However, the blockchain, in terms of its features, remains a very limited ecosystem, in which there are a huge number of conditions that do not allow it to scale. The technology is evolving, and the answer to these difficulties is a new implementation format — Hashgraph. What is its special feature?
What is Hedera Hashgraph?
The Hashgraph also refers to a distributed registry. However, the developers abandoned a clear sequence of blocks. A hashgraph records information non-linearly, meaning multiple blocks can be written at the same time. Thanks to the DAG, the hashgraph promises all the advantages of the blockchain with the solution of all its disadvantages, the main of which is the low speed of operations.
Hashgraph, like Blockchain, uses distributed computing to create new elements of the system, decentralized data storage, hashing, and other functions. It can also be used for settlements, payments, and transfers, running smart contracts, and storing files. But it has a number of significant advantages and a potential alternative to blockchain is likely to build on some of them:
- High scalability and speed — up to 500,000 transactions per second, and potentially up to a million. To date, the platform has reached more than 100 million transactions with the help of AdsDax. Hedera Hashgraph 100m is proof of the technology’s unique scalability and speed;
- In a Hashgraph, the greater the number of network participants, the higher its throughput;
- No need to perform complex and expensive calculations: 1 GB of memory is enough for transactions (after all, only transaction data is transmitted, not the entire network), and transactions are confirmed by several arbitrary participants-no need to use the entire network;
- There is no mining and proof-of-work, which means that there is no competition between miners, artificial speed slowdown, and the need for expensive equipment;
- Much less energy consumption (due to the lack of mining);
- Virtually zero commission;
- Resistant to DDoS attacks, botnets and firewalls;
- The Hashgraph code is patented, which means that the project has greater legal stability.
It is assumed that due to its high performance, the Hashgraph is ideal for solving commercial problems, micropayments, online games, and decentralized financial markets. In these areas, the Hashgraph has the greatest chance of developing as a full-fledged alternative to the blockchain, up to its complete displacement.
How transactions are confirmed on Hedera Hashgraph
Blockchain is receiving a barrage of criticism and distrust for some of its “shortcomings”. In particular, for the speed of processing transactions, which is also slowed down by their confirmation algorithms. Hashgraph promises to solve all the problem points of the blockchain.
Transaction verification is performed by the unique new Gossip protocol. And don’t be surprised by the name — it’s not called gossip for nothing. At a given frequency, information along the chain jumps from one node to another at a high speed. This occurs as long as the number of nodes that are aware of the transaction, will not be sufficient to test it.
When performing an operation on the blockchain, you have to wait quite a long time for approval. We think you know this from experience. Hashgraph offers a “simplified” system. For example, you need to pay with virtual coins. You make a transaction, and you need to prove that you did it, and the “seller” will receive your funds:
- Send your request to the node to verify and add the transaction to the network. The check is very fast. If the verification confirms that all the conditions are met correctly, you will receive a notification that gives 100% confidence to both parties of the transaction that it will soon be added to the network — that is, it will be completed.
- You can also wait for the receipt to be received. It comes to you after the operation is completed.
Hedera Hashgraph Cryptocurrency
Search the HBAR exchanges if you want to purchase Hedera Hashgraph coins. The main task of the HBAR token is to ensure the operation of the project system. No one will be able to launch a node and use the technology’s capabilities without having this cryptocurrency in their account. It is also used for the payment of fees for the transaction confirmation.
Of course, the coin can also be used purely for trading purposes. But the features of the project, associated with its low requirements for nodes and low commissions, affect the price negatively. The coin is not in short supply. And until the project gains huge popularity, it is unlikely to raise the price from the bottom.
To date, the cost of the HBAR token is $ 0.1221. Although 2 months ago, Hedera Hashgraph price was $ 0.031501. Now you won’t find much speculation about the future value of the token, but any Hedera Hashgraph price prediction claims positive dynamics. And Hedera Hashgraph 100M-the mark of completed transactions with only one company-practically guarantees an incredible level of technology application.
Who invented Hashgraph?
Dr. Lemon Baird created and patented Hashgraph. He is the founder of technology. This happened 5 years ago. And Hedera Hashgraph ICO was very successful already in 2018.
Hedera Hashgraph’s governing board was formed in February, 2021 by several Fortune 500 individuals. For example, it includes the Japanese financial holding company Nomura Holdings, the international law firm DLA Piper and the German telecommunications company Deutsche Telekom. At the end of August, the aerospace giant Boeing joined the board.
What does Hedera Hashgraph do?
Hedera Hashgraph has become a new milestone in the digital space. It can become an ideal alternative to the blockchain in the very near future. These days, Hedera Hashgraph can offer cryptocurrency, smart contracts and a file service.
The developers promise that realizing the potential of the technology is quite simple. And soon the network will be able to provide about 10,000 transactions per second. But most importantly, the transaction confirmation time will not exceed 5 seconds. And nice bonus for traders and not only: the transaction fee can be reduced to a minimum of $0.0001.
Can you invest in Hashgraph?
Of course you can. First, you can purchase Hedera Hashgraph token tokens, which will increase in price in proportion to the increasing importance of the technology. How to buy a Hedera Hashgraph coin? This is very simple to implement on Godex.io if you have any other cryptocurrency. But first, get a Hedera Hashgraph wallet.
Secondly, you can invest in apps and platforms based on the technology. Just look for promising startups.
Is it worth investing in HBAR? Decide for yourself, but we recommend that you take a closer look at it, as the technology is developing at a tremendous pace. To date, the platform has made more than 100 million transactions with AdsDax alone. Hedera Hashgraph 100M is an important milestone for the entire project.