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Although it is the most famous not only among cryptocurrencies, the Blockchain technology, created in 2008, finds some limitations in its scalability. To try to solve this problem, several solutions have been created, including Hashgraph.
Continue reading and find out more about the technologies and what are their main differences.
Blockchain technology is a public ledger that records a cryptocurrency transaction so that that record is reliable and immutable.
One of the main characteristics of the Blockchain is the construction of the transaction blocks on top of each other, forming what this technology names: a chain of blocks, in which each block produces a unique hash that identifies the transactions.
Having a single hash per block, if an attempt is made to change the transaction information, a new hash will be generated and fraud will be identified. In addition, publishing transactions in the public ledger also prevents fraud.
What is Hashgraph?
Hashgraph is a consensus-based distributed accounting technology, in which transactions do not require proof-of-work to be validated, but the consensus from all nodes in the network. Thus, users of the platform must agree to the order in which transactions are made considering that no user is trusted. After this consensus process, validated transactions have a registered consensus date and time, which eliminates the need to insert them in a public ledger. This technology was designed to be a secure, fair and very fast network.
Hashgraph was created Leemon Baird and is owned by Swirlds Corporation.
Data storage: although both are decentralized, Blockchain stores data linearly in its blockchain. Hashgraph, on the other hand, uses acyclic and targeted graphics for storage and access to information.
Security: Blockchain uses encryption methods to ensure the security of data that travels over the network. Hashgraph uses Asynchronous Byzantine Fault Tolerance (aBFT), which means, in a simple way, that the network can reach consensus, but that non-malicious computers on it can always communicate within a defined time so that messages are received and assuming ensure that there are no botnet attacks on the network.
Consensus: Hash graph consensus is determined by a virtual vote cast by the network’s nodes. Blockchain has a varied consensus since each cryptocurrency or solution that uses this technology adopts its own consensus algorithm, such as proof-of-work and proof-of-stake.
Speed: Like the consensus mechanism, the speed of the Blockchain varies depending on the solution that uses it, although it remains in a range of 100 to 10,000 transactions per second. Hashgraph is much faster, offering 250,000 transactions per second.
Justice: Hashgraph’s transactions are fairer due to the fact that the nodes of this network are allocated at random and the transactions are stamped with the consensus time, therefore, no user is affected by the order in which the transactions occur. In the Blockchain, miners have the power to select, order or interrupt transactions, and may favor some transactions over others.
It can be seen that although they work for the same purpose, recording transactions in order to prevent fraud, Hashgraph presents differences mainly in relation to the speed and consensus process, which could solve the Blockchain stability problems.
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