The evolution of technology has given us numerous innovations in every field. One of these innovations with immense potential is cryptocurrency.
Cryptocurrency is entirely based on digital transactions the records of which are maintained using Digital Ledger Technology (DLT). DLT has paved the way for further significant technologies such as Blockchain and most recently, Hashgraph.
Blockchain is a decentralized form of DLT where information regarding transactions is transferred through blocks, each linked to the previous. One of the key attributes of blockchain is that it is a decentralized technology not controlled by any single entity or network.
Developed as an alternative to blockchain according to some experts, Hashgraph was launched into the market by Leemon Baird, the CTO of Swirlds.
Developed as a way to overcome certain shortcomings of blockchain and better the consensus algorithm of said DLT, hashgraph is an algorithm. It is said to be a more secure, transparent and faster way to achieve distributed consensus.
One of the major limitations of Blockchain, the Byzantine Generals’ Problem is what led to the development of hashgraph which specifically solves this problem. As per the problem, even if a single member does not provide consensus the whole transactions can be modified significantly generating the possibility of malicious members to corrupt the system.
Hashgraph specifically solves this problem. It consists of two main technologies namely the gossip protocol and the virtual voting algorithm to gain consensus. Whenever a transaction is initiated, information is passed through the nodes using the gossip protocol. Based on this, the transaction is approved once consensus is received using the voting algorithm. One of the ways in which hashgraph is more secure is that it is a private and patented DLT where every transaction goes through the main system and verified before the information is passed on using the gossip protocol.
In order to further this technology and expand hashgraph into multiple fields, the Hedera Hashgraph Development project was created based on collaboration with multiple tech giants.
Hedera Hashgraph is a public peer to peer platform developed with the intention of opening up the hashgraph technology to the public. It provides three services namely cryptocurrency, file storage and smart contracts.
An open source SDK was recently launched as part of the Hedera Hashgraph Development project so that developers can build more decentralized apps using the hedera technology.
Compared to blockchain, transactions in Hedera Hashgraph are much faster and much more scalable as hedera hashgraph technology can process thousands of transactions within a second.
Apart from this, it is resilient to malicious transactions as it utilizes the asynchronous Byzantine Fault Tolerant consensus algorithm which records a transaction when more than two-thirds of the nodes are awakened by the said transaction.
Furthermore, as opposed to mining in blockchain where the user can pick the order of transactions, hedera hashgraph uses time stamps to record the transactions where the order of transactions cannot be manipulated.
Due to numerous benefits of Hedera Hashgraph including higher security, speed and scalability, a lot of companies are looking towards hedera hashgraph development for building their custom cryptocurrency and smart contracts along with custom decentralized applications.
Both these DLTs have their own utility. However, for the Hedera hashgraph project to go mainstream, more research and development will be required by developers in order to further expand the technology and its utility in other industries.
Hedera Hashgraph research thus has great potential to become mainstream and change the face of digital ledger technology as we know it.
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