Hashgraph Vs. Blockchain: A detailed comparison
Undoubtedly, the blockchain sector has gained significant traction over the past few years. Startups and enterprises are exploring the potential of this technology, with many even calling it the “next big thing” in the tech world.
However, there is another distributed ledger technology that has been gaining a lot of attention lately, and that is Hashgraph. So, what exactly is Hashgraph, and how does it compare to the blockchain, or can it be a blockchain alternative?
In this article, we will take a detailed look at both the technologies and witness blockchain vs. Hashgraph differences to help you make an informed decision.
First, let’s start with a quick refresher on what blockchain is?
What is Blockchain?
A blockchain is a distributed database that allows secure, transparent, and tamper-proof record-keeping. Each block in a blockchain contains a cryptographic hash of the previous block, a timestamp, and transaction data. This makes it nearly impossible to alter any information stored in the blockchain without being detected.
Blockchain is often hailed as one of the most secure technologies available today due to its decentralized nature and cryptographic hashing. Moreover, the future of blockchain looks bright, with many predictions like Gartner’s saying that the business value of blockchain will grow to $176 billion by 2025. This will eventually increase to $3.1 trillion by 2030.
What is Hashgraph?
Hashgraph is a distributed ledger technology created by Leemon Baird, the co-founder and CTO of Swirlds. Like blockchain, Hashgraph is a distributed database that allows for secure, transparent, and tamper-proof
record-keeping. The Hashgraph technology is patented, with its authorized ledger Hedera Hashgraph, and its native token is HBAR.
What is HBAR?
HashBar crypto or HBAR is the cryptocurrency of the Hedera Hashgraph network. The main purpose of HBAR is to provide a native currency for users to transact within the network. This Hedera crypto is currently listed on several exchange apps, including Binance, Upbit, and Gate.io. With businesses beginning to explore the potential of Hedera Hashgraph, the HBAR price is expected to rise. As per crypto traders, the Hedera crypto (HBAR) future price is expected to grow by 320% in the coming 3 years.
Now that we’ve covered the basics of blockchain and Hashgraph, let’s take a more in-depth look at how each technology works.
How do blockchain and Hedera Hashgraph work?
As we mentioned earlier, a blockchain is a distributed database using cryptographic hashing to secure data. Each block in a blockchain contains a hash of the previous block, a timestamp, and transaction data. This makes it nearly impossible to alter any information stored in the blockchain without being detected.
In contrast, Hedera Hashgraph uses a DAG (direct acyclic graph) data structure to achieve high output and low latency. Each node in Hedera Hashgraph stores a list of all the transactions. So, when a node wants to add a new transaction to the Hashgraph, it must first validate the two most recent transactions from each node. Once validated, the node can then add its own transaction to the Hedera Hashgraph.
The history of how these events are related to each other is known as gossip about gossip. It allows Hashgraph to achieve high output and low latency without sacrificing security or decentralization.
Blockchain vs. Hashgraph
Now that we have an idea of what these both technologies are, let’s take a more detailed look at the comparison between them.
Security
When it comes to security, both Hedera Hashgraph and blockchain are extremely secure. However, Hashgraph has the potential to be even more secure than blockchain as it uses aBFT (asynchronous Byzantine Fault Tolerance). aBFT allows Hashgraph to achieve finality in seconds, which means that once a transaction is added to the Hashgraph, it cannot be altered or removed.
However, blockchain uses cryptographic hashing that allows it to be secure. It also has the potential to be slow as all the nodes in the network must verify each block. This can lead to delays in confirming transactions.
Platform
If we consider blockchain vs. Hashgraph, Hedera Hashgraph is a patented technology platform, while blockchain is an open-source platform. This means that only the company Hedera Hashgraph can create a ledger using the Hashgraph technology.
In contrast, anyone can create a blockchain using open-source software. This has led to the development of numerous blockchain platforms, such as Ethereum, Hyperledger Fabric, and many more. Several companies offer blockchain development services, and even online courses teach people how to build a blockchain ledger.
Speed
When it comes to transactions per second, Hedera Hashgraph has the potential to be much faster than blockchain. This is because Hedera Hashgraph uses the gossip about gossip protocol, which allows it to achieve high output and low latency.
In contrast, blockchain is limited by the time it takes for each block to be added to the chain. It allows 100–10,000 TPS, depending on the use case. However, Hedera Hashgraph claims that its network can handle up to 500,000 TPS.
Consensus
Another key difference between Hashgraph and blockchain is their consensus mechanisms. Hedera Hashgraph uses the gossip about gossip protocol to achieve consensus; this allows it to be extremely fast and secure. In contrast, blockchain uses a Proof of Work (PoW), Proof of Stake (PoS), and more to achieve consensus.
Proof of Work requires miners to solve complex mathematical problems to add new blocks to the chain. This can often be slow and energy intensive. On the other hand, Proof of Stake (PoS) allows users to add new blocks to the chain in proportion to the number of coins they have staked. This can often lead to centralization as those with the most coins have the most power.
Programming language
Another key difference between Hashgraph and blockchain is their programming languages. Hedera Hashgraph uses Java and Lisp, while blockchain uses different languages. This can be a key difference for developers as it can be difficult to learn a new programming language.
So, what’s the verdict?
It depends as both Hashgraph and blockchain have their own advantages and disadvantages. Ultimately, it will depend on the specific use case as to which technology is better suited. However, it’s worth noting that Hedera Hashgraph has the potential to be faster, more secure, and more scalable than blockchain. So, businesses need to watch out for the Hedera Hashgraph future to help them grow in the technology world.
FAQs
Q. Which crypto uses Hashgraph?
A. Hedera Hashgraph is the only cryptocurrency that uses the hashgraph consensus algorithm. The native cryptocurrency of Hashgraph is HBAR.
Q. Which technology is better than blockchain?
A. It depends. Both Hashgraph and blockchain have their own advantages and disadvantages. Ultimately, it will depend on the specific use case as to which technology is better suited. However, it’s worth noting that Hedera Hashgraph has the potential to be faster, more secure, and more scalable than blockchain. So, it’s definitely one to watch out for in the future.
Q. Can Hashgraph replace blockchain?
A. Hedera Hashgraph is known for its speed as it can handle thousands of transactions per second. This is much faster than blockchain. Additionally, Hashgraph is more secure than blockchain as it uses the gossip about gossip protocol to achieve distributed consensus. However, blockchain is still more widely used and accepted than Hashgraph.
