Curious about learning distributed ledger technologies? In this article, we will provide a comprehensive comparison of Hashgraph vs. Blockchain, covering all the crucial aspects such as security, consensus mechanism, speed, and much more.
Learning Of Blog
- Introduction to Distributed Ledger Technology
- Defining Hashgrapgh & Blockchain
- Hashgraph vs. Blockchain- Key Differences
Introduction to Distributed Ledger Technology
Distributed ledger technology is a digital system for recording the transaction of assets in which detailed transactions are recorded in various places at the same time. Distributed ledgers have no central data store, unlike traditional databases, and use independent computers or nodes to record and synchronize transactions in their respective electronic ledgers. Blockchain and Hashgraph are both distributed ledger technologies, but former one claims to be more secure and efficient.
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Defining Hashgrapgh & Blockchain
Before figuring out how both these distributed technologies differ, let’s define both of them.
It is another form of distributed consensus that offers a different approach to distributed ledger technology. It is a peer-to-peer platform that removes the need for any intermediary to complete transactional operations. Hedera Hashgraph is a public Hashgraph network that has all the characteristics of the Hashgraph consensus algorithm with slight changes in how it employs the leader format. Hashgraph platform is known for its speed as it can handle thousands of transactions per second and capable of verifying more than one million signatures per second.
Concept of Blockchain
It is a chain of data “blocks” stored on millions of computers or servers distributed over a wide geographical area. Blockchain is a complete ledger that maintains a copy of all the credit and debit transactions of a digital asset.
It is a decentralized ledger capable of tracking multiple digital assets on a peer-to-peer network. By peer-to-peer network, it means a decentralized peer-to-peer network where all the computers are connected in some way, and where each maintains a complete copy of the ledger.
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Hashgraph vs. Blockchain- Key Differences
Hedera Hashgraph platform is based on asynchronous Byzantine-Fault Tolerance (aBFT), which aims at providing an improved model of DLT by catering solutions to many established cryptocurrency platforms. This platform uses Gossip about Gossip (meaning to synchronize information from one node to another random node) and virtual voting as the form of gaining network consensus.
Unlike Hashgraph, Blockchain does not rely on a single approach to consensus. Depending upon cryptography and currency, Blockchain uses many consensus algorithms such as Proof of Work, Proof-of-Elapsed Time, Practical Byzantine Fault Tolerance, Proof of Stake, etc.
For the data stored and transmitted on the network, Blockchain possesses a different approach where they utilize cryptographic methods to ensure security. The digital blocks in the chain are tamper-proof, and no malicious actor can change the integrity of the data in any way.
For securing the network from malicious actors, Hashgraph utilizes an approach known as Asynchronous Byzantine Fault Tolerance(aBFT) where Hedera hashgraph assumes that there will be bad actors.
Efficiency can be determined on the basis of block-creation. Since Hashgraph does not rely on block reaction, unlike Blockchain, it is 100% efficient. But when it comes to Blockchain, sometimes the effort of the miners is wasted as miners have to decide on one block in case two blocks are mined at the same time.
Talking about the speeds of both the technologies, Blockchain’s speed varies depending on various factors such as cryptocurrency, platform, etc. and its speed is comparatively slow when compared to Hashgraph as Blockchain can perform 100 to 10,000 transactions per second. On the other hand, Hashgraph can reach a speed of 5,00,000 transactions per second.
No matter how better Hashgraph is in terms of security, efficiency, and speed, it lacks behind in terms of adoption. Blockchain is an evolving technology that is adopted by various top companies and organizations, while the adoption rate of Hashgraph is slow.
Let’s have a quick overview of the differences between the two.
|Accessibility||Public if Hedera Hashgraph, else Private||Public, Private and Hybrid|
|Consensus Mechanism||Virtual Voting||Various Proof of Work, Proof of Stake and more.|
|Security Mechanism||Asynchronous Byzantine Fault Tolerance||Cryptographic Hashing|
|Speed||Up to 500,000 transactions per second||Up to 100 to 10,000 transactions per second|
So what you think? Could one beat the other?