Both Blockchains and Hashgraphs are kinds of Distributed Ledger Technology, with the latter expected to challenge Blockchains’ global supremacy.
In fact, Hashgraph is being billed as the biggest thing since the internet, as well as the most revolutionary decentralized technology.
Key Takeaways
- Blockchain uses a decentralized, sequential structure for recording transactions, while Hashgraph uses a directed acyclic graph (DAG) for faster and more efficient transaction processing.
- Blockchain requires mining and proof of work for consensus, whereas Hashgraph employs the gossip-about-gossip and virtual voting protocols for achieving consensus.
- Hashgraph claims to offer higher transaction throughput, security, and fairness than traditional blockchain technology.
Blockchain vs Hashgraph
Blockchain relies on a decentralized network of nodes and linear chain structure to validate, store and provides secure transactions. Hashgraph uses a directed acyclic graph (DAG) structure and consensus algorithms to validate transactions, and allows for secure voting and smart contract execution.
Blockchain is a decentralized and immutable virtual data ledger that is used to keep track of transactions and digital material across the internet.
An asset can be anything from a car to a house to real estate to any other tangible or intangible commodities, such as branding, private knowledge, copyrights, and patents.
As a result, any substantial virtual asset is appropriate for trading and monitoring on a blockchain network.
Hashgraph is a distributed ledger established by Leemon Baird. It uses hashing to ensure security and decentralization as means to enhance the version of distributed ledger technology.
It is critical to emphasize that Hedera is unique in that it can achieve the same results as the most popular public blockchains, but it is considerably superior in order to improve energy, stability, and security.
Comparison Table
| Parameters of Comparison | Blockchain | Hashgraph |
|---|---|---|
| Programming Language | Different languages | Java and Lisp |
| ABFT Compliant | Not completely compliant | 100% compliant |
| Accessibility | Public, private, or hybrid | Private and public if it is Hedera Hashgraph |
| Copyright | Open-sourced | Patented |
| Applications | Bitcoin, Hyperledger Blockchain, EOS, Ethereum, etc. | Swirlds |
| Security Mechanism | Cryptographic hashing | Asynchronous Byzantine Fault Tolerance |
| Speed | 100 to 1000 transactions | 500,000 transactions per second. |
| Fair | Less fair | Fairer |
What is Blockchain?
Blockchain technology generates a data structure with built-in security mechanisms. It is based on the concepts of encryption, decentralization, and agreement, all of which contribute to transactional trust.
The majority of blockchain and distributed ledger technology (DLT) data is arranged into blocks, each of which contains one or more transactions.
Blockchain technology generates a data format that incorporates security measures. It is founded on encryption, decentralization, and agreement concepts that ensure transactional confidence.
Most blockchains and distributed ledger technology (DLT) structure their data around blocks, with each block holding one or more transactions.
Blockchain technology supports decentralization by allowing members to participate across a distributed network. There is no sense in failing, as the transaction record can only be changed by one user.
However, blockchain and other systems have substantial security differences.
Private blockchains rely on identities to validate membership and access credentials and only allow well-known organizations to join. The organizations band together to form a private, members-only “business network.”
A blockchain-based network gets consensus within a network through a process known as “chosen endorsement,” in which recognized users validate transactions.
Members with specific access and permissions can only maintain the activity ledger. This network type demands more identification and access management.
Blockchain is a system of storing data that makes it difficult or impossible to edit, manipulate, or swindle it. A blockchain is a data log of interactions that are duplicated and distributed across the whole computer network servers of the blockchain.
This secures all data and information with a stringent lock policy that no one will be able to circumvent. This blockchain contains the majority of the critical information.
What is Hashgraph?
It is patented by Swirlds and can only be used with a license. However, there is Hedera Hashgraph, which is a public Hashgraph network. I
t includes all of the Hashgraph consensus method capabilities, but it uses the leader format in a slightly different way. To preserve connectedness and consensus, it employs two techniques: talk about gossip and Virtual Voting.
The Hashgraph network is intended to be secure, fair, and speedy. It is built with the Java and Lisp programming languages. This also implies that it supports Solidity. The speed of the Hashgraph network is one of its most significant advantages.
Proof of Work or Leader-Based Systems is not required for the Hedera Hashgraph algorithm. It is capable of providing low-cost, high-performance service. Hashgraph does not necessitate a large amount of computer power or an energy source.
Although Hashgraph is a promising approach, it has severe disadvantages. Currently, the technology is exclusively utilized in private, permission-based networks. It has not yet been tested or researched in some kind of a public network.
Hedera Hashgraph eliminates the speed issue and can easily execute thousands of transactions per second. They utilize two algorithms to improve overall efficiency. These algorithms include Virtual Voting and Gossip about Gossip.
Hedera is the only public distributed ledger that uses the Hashgraph consensus technique, which is quick, fair, and safe. Hedera’s governance is completely decentralized, with up to 39 term-limited and diverse leading organizations and enterprises.
Main Differences Between Blockchain and Hashgraph
- Blockchain uses different programming languages, while Hashgraph uses Java and Lisp.
- Blockchain is not completely compliant with ABFT, whereas Hashgraph is 100% ABFT compliant,
- Blockchain is either public or private, or hybrid. Hashgraph is private and Hedera Hashgraph is public,
- Blockchain is copyrighted as open-sourced. On the other hand, Hashgraph is patented.
- Blockchain can be applied to Bitcoin, EOS, Ethereum, etc. Hashgraph can be applied to Swirlds.
- The security mechanism used in the blockchain is cryptographic hashing, and the security mechanism used in Hashgraph is Asynchronous Byzantine Fault Tolerance
- Blockchain has a speed of 100 to 1000 transactions. This is based on the protocol implementation. On the other hand, Hashgraph has a speed of 500,000 transactions per second.
- Hashgraph is fairer than Blockchain in comparison.
References
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3144241
- https://journals.euser.org/index.php/ejef/issue/view/272/ejef_v2_i2#page=86
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