In this Blockchain tutorial, we will discuss the difference between Hashgraph and Blockchain technology. Moreover, we will also illustrate the following topics.
- Introduction to Distributed Ledger Technology
- Introduction to Blockchain
- Introduction to Hashgraph
- Hashgraph vs Blockchain: Key Differences
- Is Hashgraph better than Blockchain?
- Will Hashgraph Replace Blockchain?
Introduction to Distributed Ledger Technology
Now, before moving on to the comparison between these technologies, we’ll start with an overview of distributed ledger technology (DLT).
A distributed ledger technology is a digital system that allows users and systems to keep track of asset transactions. This technology allows information to be stored in multiple locations at the same time.
Unlike traditional databases, distributed ledgers do not have a central data store. Instead, it relies on individual computers or nodes to record and synchronize transactions in their electronic ledgers.
DLT is based on the peer-to-peer (P2P) network. Peers connect in a peer-to-peer (P2P) network without the need for a central body.
A peer-to-peer network allows for the implementation of distributed ledger technology. To make decentralization operate, a consensus algorithm is applied.
Now, there are a variety of DLTs available, including the two we’ll be discussing here, Blockchain and Hashgraph.
Security, decentralization, transparency, integrity, and speed are the core features of distributed ledger technology. But, not all DLTs provide all of these functionalities.
Introduction to Blockchain
Blockchain is a widely discussed type of distributed ledger technology. It’s a decentralized and distributed ledger system that holds transactional records in blocks and allows users to view them from anywhere on the network.
Transactions in Blockchain are recorded using an immutable cryptographic signature also known as a hash.
The transactions are then organized into blocks, with each new block including a hash of the previous one, forming a chain. Hence this formation of a chain of blocks is called Blockchain.
Now, blockchain technology is immutable. This implies that data cannot be erased or modified after it has been recorded.
As a result, blockchain is a great fit for problems that require data immutability. , Managing supply chain, financial business, and voting are all possible applications.
Also check out, Types Of Blockchain and Blockchain Architecture
Introduction to Hashgraph
Alternatively, Hashgraph is just a consensus mechanism for distributed ledger technology that utilizes a separate approach. It is created by Leemon Baird and licensed by Swirlds Corporation.
Moreover, it is a peer-to-peer platform that eliminates the need for a middleman to execute transactions.
As described, Swirlds holds the patent for Hashgraph, and it can only be used with a license. So, it is not open to the public in the way public blockchain is.
However, Hedera Hashgraph, a publically available Hashgraph network is also there. It has various features of the Hashgraph consensus algorithm, except for how the leader format is used.
Moreover, it employs two techniques: virtual voting and gossip about gossip for ensuring consensus and connectivity.
The Hashgraph does not utilize mining to validate transactions Instead, it employs a directed acyclic graph for ordering transactions without breaking them into blocks. It sends data between nodes in a network using a protocol called gossip about gossip.
The Hashgraph is a network that is created to be fast, fair, and even secure. It is written in Lisp and Java and it is also Solidity compatible. The fast speed of the Hashgraph is one of its most notable benefits.
Hashgraph vs Blockchain: Key Differences
Now that we got a brief about each type of DLT, it’s time to undergo and understand some differences between them. Various effective characteristics between these are listed below.
1. Open source vs Patented
The blockchain is an open-source technology. This implies that it is open to the public to learn, use, alter, and share. Due to this, many people are contributing to the development of cryptocurrencies and utility tokens.
Besides, Hashgraph is based on a patented algorithm developed by Leemon Baird and licensed by Swirlds Corporation. As a result, any new addition must go via Swirlds.
2. Different techniques
One key difference between Hashgraph and Blockchain is there in different techniques they use. Blockchain technology utilizes a linear approach to store data in blocks.
On the other hand, the directed acyclic graph is used to store and access information in Hashgraph. Each node in both DLTs has a replica of the entire ledger, ensuring that the ledger is truly decentralized.
3. Transaction Speed
The speed of a transaction varies in blockchain as it depends upon the blockchain solution, for example, platform, cryptocurrency, etc. Nevertheless, the speed of transactions in the blockchain is considered to be slow in comparison with Hashgraph.
Hashgraph can potentially handle 5,00,000 transactions per second. But in practice, this may vary depending on a variety of conditions.
Still, Blockchain systems such as Ethereum, Bitcoin, and others are extremely slow, with speeds ranging from 100 to 10,000 transactions/second.
4. Security
When it comes to security, both blockchain and Hashgraph have proven to be reliable. Blockchain technology relies on cryptographic techniques to keep data stored and sent on the network secure.
On the other hand, Asynchronous Byzantine Fault Tolerance (aBFT) is used by Hashgraph to protect the network from malicious attackers.
Each event is correctly captured, and the method ensures that no data is tampered with, even if the network contains dangerous actors.
5. Fairness
Fairness is one of the key differences between Hashgraph and Blockchain.
Blockchain technology is considered to be a little unfair when it comes to its users and miners. In Blockchain, the miner holds more control for deciding which orders to process and also stopping transactions. This isn’t fair for everyone linked to the network, whether directly or indirectly.
Fairness is handled differently in Hashgraph, which assigns nodes at random. It also makes use of consensus time-stamping to ensure that no one is harmed as a result of the transaction order.
On the other hand, fairness in Hashgraph is still a little hazy as the whitepaper of Hashgraph does not sufficiently describe it.
6. Efficiency
The strategy of block mining in blockchain makes it difficult for mining nodes to operate on the block. For example, mining of two blocks at the same moment.
In this case, the community must now choose one block, and the other block will be rejected. In the last, the miners’ efforts are squandered, resulting in a less productive network.
Hashgraph is immune to the problem because it does not rely on block generation but rather on events. Thus, Hashgraph is more efficient compared to Blockchain.
7. Consensus Algorithm
In Blockchain, there are a variety of popular consensus algorithms. Proof-of-Work, Proof-of-Stake, Proof-of-Elapsed Time, and so on are a few of them.
Whereas, Hashgraph or Hedera Hashgraph reaches network consensus through virtual voting. Hashgraph is a consensus mechanism for distributed ledger technology and it is considered to be quite efficient.
8. Adoption of Technology
In the case of the development and adoption of technology, blockchain easily outperforms Hashgraph.
Blockchain technology was introduced a decade ago and this gives an advantage to it. As in this period, many attempts towards perfection have been made, including the launching of Ethereum.
Moreover, various blockchain solutions, like NEO, VeChain, and others, have also begun to emerge.
In comparison to Blockchain, Hashgraph is not yet as widely used as it is licensed technology. Hedera Hashgraph, the public variation of Hasgraph, is still in development.
Comparison Table
| Factor | Hashgraph | Blockchain |
|---|---|---|
| Copyright | Patented | Open Source |
| Programming Language | Lisp and Java | Different languages like Java, C++, Python, Solidity |
| Accessibility | Private and Public in case of Hedera Hashgraph | Public, Private, or Hybrid |
| Consensus | Virtual Voting | Different mechanisms like PoW, PoS, PoET, etc. |
| Security Mechanism | Asynchronous Byzantine Fault Tolerance | Cryptographic Hashing |
| Speed | 500,000 transactions/ second | 100 to 1000 transactions depending upon different solutions |
| Efficiency | More Efficient | Less Efficient |
| Fairness | More Equal | Less Fair |
| ABFT Compliant | Fully compliant | Not fully compliant |
Read Introduction to Quorum Blockchain
Is Hashgraph better than Blockchain
Although Hashgraph provides numerous advantages, such as efficiency, speed, and performance.
Still, the platform has not yet been available to the public properly. As a result, specialists have been unable to assess its actual potential.
Due to this, we can’t take Hashgraph seriously until it’s publicly announced and its implementation prospects are evaluated. Even though Hashgraph indicates to be decentralized, it is only theoretically.
Moreover, there are no protection measures to prevent the nodes from carrying out malicious acts or operations.
Also, Hashgraph cannot monitor a record with a long history because transaction history is limited to a small number.
However, blockchain has had enough time to demonstrate its worth, and its capabilities have benefited a variety of industries. As a result, it outperforms Hashgraph by overcoming its flaws.
Read Introduction to Blockchain Mining
Will Hashgraph Replace Blockchain?
When compared to Blockchain, Hashgraph is more advanced. However, this does not imply that it will be able to take the place of blockchain.
Still, blockchain acceptance is on the rise, and with the emergence of permissioned blockchains, businesses are becoming more eager to experiment with the technology.
Moreover, many businesses are already utilizing blockchain technology. Also, there are still projects that are efficient even more than Hashgraph.
Besides, Hashgraph is privately held by a company. And this is one of the reasons that the adoption of this technology is slow.
You may like the following blockchain tutorials:
- Tokenization in Blockchain
- Introduction to Enterprise Blockchain
- Consensus in Blockchain
- Decentralization in Blockchain
- Blockchain Uses Other than Currencies
- What is Cardano Blockchain
So, in this tutorial, we have discussed the difference between Hashgraph and Blockchain technology. Moreover, we have also illustrated the following topics.
- Introduction to Distributed Ledger Technology
- Introduction to Blockchain
- Introduction to Hashgraph
- Hashgraph vs Blockchain: Key Differences
- Is Hashgraph better than Blockchain?
- Will Hashgraph Replace Blockchain?
I am Bijay, a Microsoft MVP and founder of TSInfo Technologies, a SharePoint development company. Currently focusing on getting expertise on Ethereum, Solidity, Bitcoin, Cryptocurrency, Blockchain, etc. Sharing my expertise and tutorials on Bitcoin and Ethereum related technologies. Read More…