Hashgraph versus Blockchain Technology
Block chain technology has revolutionised the arena of digital currency. Hashgraph is a new entrant for strengthening the digital currency mechanisms.
Hashgraph provides for a distributed ledger technology based on the feature of superior data structure. Features of the blockchain like distributed, transparent, consensus-based, transactional and flexible are all available with Hashgraph. Being a consensus algorithm it is much faster fairer, and more secure than blockchain. It is described as future of distributed ledger technology. Hashgraph technology can aid in finding solutions to problems of the blockchain like consensus mechanism.
Advantages of the Hashgraph over blockchain include
- A new consensus algorithm based on superior distributed ledger technology. This eliminates the requirement for massive computation and unsustainable energy consumption like those of Bitcoin.
- In the blockchain world, a miner can choose the order for which transactions occur in a block, can delay orders by placing them in future blocks, even stop them entirely from entering the system. Consensus time stamping available with Hashgraph offers a solution to this problem.
- Hashgraph makes no assumptions about how fast messages are passed over the internet. This capability makes it resilient against DDoS attacks, botnets, and firewalls.
- No mined block ever becomes stale. Whereas in the blockchain, transactions are put into containers (blocks) that form a single, long chain. If two miners create two blocks at the same time, the community will eventually select one and discard the other, resulting in wastage of efforts. In Hashgraph, every container is used and none are discarded.
Upcoming cryptocurrencies based on hashgraph will have to register with Hedera Hashgraph and also request tokens for vendors that accept virtual currencies running the hashgraph algorithm. While it is a more robust version of blockchain that will give regulators reason to cheer since it comes under the ambit of a registered entity, it remains to be seen whether the operational advantages of hashgraph will trump its non-permissioned environment which might keep away commerce in the underground economy. [Reference]