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Blockchain technology brought a revolution in the field of digital remittances by bringing forth the most secure decentralized ledger to store data. It has long been the talk of every industry for its awe-inspiring features like security, efficiency, immutability, and transparency. In a short period, blockchain technology has impacted every field and every industry.
Data scientists are adamant that blockchain is and will remain the most demanding technology for at least a whole decade. But is it so?
Perhaps not! A software platform called Swirlds has developed an entirely new distributed ledger technology called Hashgraph. Its consensus algorithm is 50,000 times faster, safer, mathematically advanced, and way more efficient than blockchain.
The beauty of Hashgraph lies in the fact that it doesn’t use any proof-of-work (PoW) system nor does it use any stale blocks. Above all, it makes use of a Byzantine fault-tolerant system for distributed computing which makes it more secure than blockchain.
What is Hashgraph
Hashgraph is a new platform for distributed consensus that claims to be more robust and secure than a blockchain. It’s a distributed ledger technology backed by the BFT computing system. Additionally, Hashgraph claims to have a superior data structure for solving many complex problems that the blockchain couldn’t rectify.
Considered faster, safer, fairer, and more efficient than blockchain, Hashgraph claims to be the future of the internet and distributed ledger technology. Hashgraph utilizes two unique methodologies to attain a faster, fairer, and more secure consensus. These are:
- Gossip About Gossip (GAG)
- Virtual Voting
GAG indicates that a small additional amount of data is added to this gossip which is a pair of gossip containing the last two people talked to. This information is further used to create Hashgraph, which automatically updates itself with more gossiped data on each node.
Once the Hashgraph is ready, it becomes easy to vote on a new node as you already have the information about each node. Further, individuals can use this data to determine transactions that have reached a consensus more quickly. They can use it as input to the voting algorithm.
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Hashgraph Vs. Blockchain
As we all know, a blockchain is an immutable decentralized ledger for recording transactions about Bitcoin or other digital currencies. However, developers programmed it in such a way that it may record virtually anything of value.
The blockchain stores information as a shared record amongst all the nodes in the network. It stores data in a series of blocks that are electronically linked together, forming a massive database. Above all, it forms a decentralized network without any single point of failure.
Contrarily, Hashgraph follows a different and superior data structure. It can solve many complex problems that the blockchain was unable to solve. Let’s see how.
As of today, consensus technologies are broadly divided into two parts:
- Public Networks
- Private Networks
Both these networks have their own set of limitations. Due to the use of PoW, public networks have performance constraints and these are a bit expensive to run. It dramatically reduces the number of applications associated with public networks.
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As compared to public networks, private networks are more cost-effective and way more efficient. It is clear from the fact that these networks are capable of processing 1000 transactions per second. However, there are certain loopholes in this technology in terms of relaxed security standards that make these networks vulnerable to DDoS (distributed denial-of-service) attacks.
The Hashgraph algorithm by Swirld overcomes these drawbacks as it neither requires PoW nor does it require a leader. And thus it brings forth a highly efficient decentralized digital ledger without any single point of failure. So, it is faster, fairer, and more secure than blockchain ever was.
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