In the world of distributed ledger technology, there are many different types of systems available. Two of the most popular ones are Hashgraph and Blockchain. Both have gained a lot of attention in recent years for their innovative approaches to decentralization, security, transparency, and speed.
In this article, we will explore the key differences between Hashgraph and Blockchain and how they stand in the current market.
What is Distributed Ledger Technology?
Distributed ledger technology (DLT) is a network of peers that communicate with each other to reach a consensus. In a DLT, every node has a copy of the ledger and is immutable in nature. The key features of DLT are decentralization, security, transparency, integrity, and speed.
Blockchain: An Overview
Blockchain is one of the most popular forms of distributed ledger technology. It is the underlying technology that is used by the first-ever cryptocurrency out there, i.e., Bitcoin. In a blockchain, peers communicate between themselves to form a peer-to-peer network.
Technically, a blockchain is a series of blocks or records. It supports the append-only structure. However, the database is immutable, which means that the data, once written, cannot be deleted or edited by anyone. The data stored in the previous blocks cannot be changed by any means.
Blockchain is an ideal solution for current generation problems where data immutability is essential. It can be used for voting, supply chain management, and the finance industry.
Hashgraph: An Overview
Hashgraph is a distributed ledger technology that claims to be more secure, fast, and fair. It is implemented using Java and Lisp programming languages and supports Solidity. One of the most significant advantages of the Hashgraph network is its speed.
Hashgraph utilizes the directed acyclic graph for storing and accessing information. Each node has a copy of the ledger, making it truly decentralized. It utilizes Asynchronous Byzantine Fault Tolerance (aBFT) to secure the network from bad actors. The consensus algorithm ensures that each event is recorded correctly, and no data can tamper even when the network has some malicious actors.
Differences Between Hashgraph and Blockchain
Here are some key differences between hashgraph and blockchain.
Approach
The most significant difference between Hashgraph and blockchain is their approach. Blockchain stores data in blocks — in a linear way. Hashgraph, on the other hand, utilizes the directed acyclic graph for storing and accessing information.
Security
When it comes to security, both blockchain and Hashgraph stand strong. Blockchain utilizes cryptographic methods to ensure security for the data stored and transmitted on the network. Hashgraph utilizes Asynchronous Byzantine Fault Tolerance (aBFT) to secure the network from bad actors.
Consensus Algorithm
Blockchain uses Proof of Work or Proof of Stake algorithms to achieve consensus, whereas Hashgraph utilizes Asynchronous Byzantine Fault Tolerance (aBFT) to achieve consensus.
Speed
Hashgraph claims to be faster than blockchain in terms of transaction speeds.
Conclusion:
In conclusion, both Hashgraph and blockchain have their advantages and disadvantages. Blockchain has been around longer and has a larger community, while Hashgraph is a newer technology that claims to be faster and more secure. Both technologies have their unique approaches to decentralization, security, transparency, and speed, and it ultimately depends on the specific use case as to which technology is better suited.
