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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 Holochain.
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 Holochain?
It is a type of distributed accounting technology that comes after blockchain technology and seeks to modify the current internet structure. Holochain is a peer-to-peer network that does not take consensus into account and does not require the validation of blocks through mining.
According to the platform, Holochain is a DLT that is distributed among the nodes avoiding any and all instances of centralized control of the data flow on its platform.
That’s because Holochain uses a distributed hash table (DHT), which allows users to store their data using certain keys. This data is located in real locations distributed in various locations around the globe. The structure distributed in several locations avoids network congestion and offers more scalability, allowing transactions through the Holochain network to reach millions of TPS. Even though Holochain does not have tokens or cryptocurrencies, but Holo Fuel, the fuel for transactions on the network.
A differential of Holochain is the fact that each device on the network has its own secure ledger and works independently while interacting with the other devices on the network, obtaining a decentralized edge computing solution. That is, each node in the Holochain network has its own chain, and the chains interact with each other in such a way that a transaction involving two chains occurs very quickly and is registered in both chains.
Holochain can also be used for hosting decentralized applications (hApps, in this case), and for this, developers only need confirmation of the single-chain that forms this entire DLT network, so the process is also quite fast.
A big difference between Blockchain and Holochain is its structure. While the Blockchain stores and transfers the data grouped in blockchains, Holochain uses a holographic model to store and transfer the data in addition to enabling, in the case of hApps, the organization of them in various dimensions of its network, ensuring that they are fact distributed.
Another difference is in the consensus mechanism. At Holochain, it is not mandatory, but it can be activated and is called “Proof of Service”, in which the user is rewarded when completing a service for another user, being rewarded in cryptocurrencies. Blockchain requires consensus and demands proof-of-work for transaction validation.
In addition, in Blockchain, nodes depend on the single network to be able to initiate and validate their transactions, while in Holochain, each node in the platform has its own “chain” / chain. This fact generates more disagreements between Blockchain and Holochain, as Holochain does not demand miners, with transaction fees almost zero. Blockchain, on the other hand, needs miners to validate transactions, having higher fees for transactions.
It can be seen that although they work for the same purpose, registering transactions in order to avoid fraud, Holochain, called by some post-blockchain technology, presents notable differences in what concerns speed, consensus process, structural difference and the fact that Holochain is more distributed while Blockchain is more decentralized. However, Blockchain is still the most widely adopted technology, not only for cryptocurrencies but also in several other areas.
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