Hello, crypto fam! For those of you who are first-time viewers, I’m Kris from Exodus and you regulars, welcome back. Were going to take a closer look at Hedera Hashgraph, and why some people have called it The Blockchain Killer. Let’s break it down, right after this. If you’re not familiar with Hedera Hashgraph it’s a little bit different from your typical crypto project.
Hashgraph is an open review consensus algorithm developed in 2016 by DrLeemon Baird. Hedera is the decentralized public network and governing council, owned and governed by a global council including Baird’s company Swirlds Corporation, along with corporations such as Boeing, Deutsche Telekom, Google, IBM, Tata Communications, LG and more. Bring them all together and you get HederaHashgraphthe only public distributed ledger in the world that uses the unique Hashgraphalgorithm, with its very own native token, HBAR.
HBAR coins are used to power decentralized applications, make payments and to secure HederasProof-of-Stake network. Dr Leemon Bairds Hashgraph technology is a compelling alternative to blockchain. Some have even called it the next-generation blockchain. Similar to a blockchain, Hashgraph is a decentralized and public distributed ledger. But the way it works differs from blockchain in several ways and even offers up some vast improvements.
Hashgraphs stroke of genius was looking at one of the fastest and most resilient ways primitive human communication has travelled through gossip. We’ve all shared spicy news in one way or another and are often shocked by how fast gossip spreads like wildfire. In fact, once the word gets out, there’s no way to stop it.
Using gossip as a blueprint, Dr Bairdcreated the gossip-about-gossip protocol behind the hashgraph algorithm, which works like this: Unlike blockchain, which has miners sequencing data block after block in a Proof-of-Work protocol, hashgraph uses an entirely different network architecture or data structure called Directed Acyclic Graph or DAG. Hashgraphs DAG is made up of these spherical containers called events, which are gossipped across the nodes of the network, like notes along a musical scale. Let’s say we have five nodes on the network: Alice, Bob, Carol, Dave and Ed. Each node gossips out events to other nodes at random.
Each event is a bundle of information of transaction data along with a timestamp, signature and two cryptographic messages also known as hashes. With just those two hashes, the ledger can obtain a complete historical graph of how the information flowed through the network. Hashgraph solves all the same problems that blockchain does but in a different manner. Does this mean it is better than Bitcoin or even Ethereum? Let’s look at some of the differences.First, speed. Bitcoin can handle about transactions per second.
Ethereum, the 2nd largest blockchain can handle about15 transactions per second. Hedera Hashgraph?At the fastest levels, Hashgraph is able to achieve a blazing speed of 10,000 transactions per second. Next, transaction fees. The average transaction fee of Bitcoin andEthereumcan is between a few cents to $10 or more depending on how congested the network is..Comparatively and because there are no miners to compensate for their work, Hedera Hashgraph is able to keep its transaction fee to a minimal$0.0001 in USD, paid in bars.
This fee does not change depending on network demand or usage, making it stable and attractive for enterprise use and adoption. And third, security. Hashgraph has achieved the highest possible level of security for a consensus algorithm asynchronous Byzantine Fault Tolerance(or aBFT). Hashgraphs aBFT network is able to achieve consensus with 100% finality by assuming that messages between honest nodes will be delayed or never reach their intended recipients, such as during the case of a malicious attack. Fast, minimal transaction fees, and a secure network.
What more could you ask for? Hederaalso doesn’t require energy-heavy Proof-of-Work resources. For diversity and stability, Hederais governed and backed by a global council of 39term-limited organizations and blue-chip enterprises representing18 industries around the world, including Australia, Japan, Europe, South America and India. The potential applications of Hashgraph, like blockchain, are infinite.
From settling micropayments to music and intellectual property, supply chain management, decentralized advertising, sovereign identity, decentralized finance, the Internet-of-Things and this is just scratching the surface. Currently, there are more than 300decentralized applications being built on the Hashgraph platform, including the digital healthcare platform Safe Health Systems, Inc. that’s used by over 150,000 users at Delta, Arizona State University, and The Coupon Bureau, an industry-managed platform whose advisory committee includes the likes of Target, General Mills, GS1 and others.
Read More: Weekly Gossip In Hashgraph