Hashgraph vs Blockchain are two distributed ledger technologies that have attracted a lot of attention lately. The goal of each of these technologies is to offer a decentralised, safe way to store and share data. But the two Blockchain or Hashgraph are very different from one another. The main distinctions between Blockchain and Hashgraph will be discussed in this blog post.
Explain and Tell the Pros and Cons of Blockchain
The distributed ledger technology known as blockchain is most famous for being used in cryptocurrencies like Bitcoin and Ethereum. In essence, blockchain technology is a network of computers that maintains a decentralised database. Every computer in the network keeps a copy of the database, and they all collaborate to update and validate it.
One of the main features of blockchain is its stability. Data cannot be changed or removed after it has been added to the blockchain. This makes it the perfect option for applications that call for a transparent and impenetrable ledger.
1. High Level of Integrity: Once created, data cannot be changed or modified by anybody.
2. Complete control over information: In a typical centralised system, the user lacks full control over their own personal data, which makes it easier for superior officials or businesses to misuse users' data for their own gain. However, users have complete control over their information thanks to blockchain's superior level of security and transparency.
3. Quicker Transactions: Processing international transactions through traditional centralised institutions takes a long time. As a result, many customers cannot rely on the antiquated systems of traditional banks. But with blockchain, we can complete a transaction in a matter of seconds.
1. Verification Process: To verify transactions between the right nodes, it employs a verification mechanism like ECDSA (Elliptic Curve Digital Signature mechanism). As each node must independently confirm the user's identity, this can be a challenging and complicated procedure.
2. High Energy Consumption: Both during transaction times and even when mining, it takes a lot of electricity to conduct complicated computing tasks.
3. High volatility: The primary blockchain product, a cryptocurrency, is extremely volatile, with prices dropping often. As a result, cryptocurrencies are not widely accepted as a global form of payment.
Explain and Tell the Pros and Cons of Hashgraph
Swirlds, a business established in 2015, created the distributed ledger technology known as hashgraph. A more effective and safe method of obtaining widespread consensus is offered by the consensus algorithm hashgraph.
Hashgraph employs the "gossip protocol," a proprietary consensus algorithm, as opposed to blockchain, which uses a proof-of-work or proof-of-stake consensus algorithm. The very effective gossip protocol may reach consensus in a matter of seconds, which makes it far quicker than conventional blockchain systems.
1. Security: According to Hedera Hashgraph, the aBFT (asynchronous byzantine fault tolerance) mechanism provides the highest level of security.
2. Fast Transaction: It processes transactions at a rate of up to 500,000 per second, making it far faster than blockchains like Bitcoin and Ethereum. Additionally, it executes transactions with 100% confidence.
3. Low transaction charge: Compared to Bitcoin, which has a transaction price between $10 and $30 and can take up to 10 minutes to execute a transaction, it has a transaction fee of less than one cent.
1. Open source: Unlike blockchain, hashgraph is a patented Swirlds invention, making it impossible for developers to make contributions to it without the company's consent. Blockchains are becoming increasingly popular because of the active development community that is attempting to test out new solutions.
2. Uncertainty: Despite its claims that it is better and faster than existing blockchains, it is still unknown if it can be utilised to handle the enormous load that has seriously harmed networks like Ethereum.
The Major Hashgraph vs Blockchain Comparison
The following is a list of how blockchain and hashgraph technology differ from one another:
Their consensus mechanisms are the main distinction between blockchain technology and hashgraph. Hashgraph employs the gossip protocol, a proprietary consensus process, whereas blockchain commonly uses a proof-of-work or proof-of-stake consensus algorithm.
The very effective gossip protocol enables nodes to communicate with one another in a decentralised and safe manner. The network can expand and handle more transactions thanks to the gossip protocol's great scalability, which doesn't compromise security.
The speed at which Blockchain and hashgraph technologies operate is another significant distinction. Compared to conventional blockchain systems, hashgraph is substantially faster. Hashgraph is a perfect choice for applications that need quick and secure transactions since the gossip protocol it uses enables nearly instantaneous transaction finality.
Blockchain transactions, on the other hand, generally take a few minutes or even hours to complete. For applications that need quick and reliable transactions, this can be a big disadvantage.
Blockchain and Hashgraph were both created with security and decentralisation in mind. However, because of its consensus algorithm, hashgraph is thought to be more secure than blockchain.
Hashgraph uses the gossip protocol, which offers a more effective and safe method of obtaining distributed consensus. It is the perfect answer for apps that need a high level of security because it makes it much more difficult for malicious actors to penetrate the network.
Another important distinction between Blockchain and Hashgraph is scalability. Hashgraph is extremely scalable, but blockchain has scaling problems because of its restricted capacity for processing transactions.
Hashgraph's gossip mechanism enables the network to expand and handle more transactions without jeopardising security. For applications that need highly scalable and secure distributed ledger technology, this makes it the perfect answer.
Summing Up With Hashgraph vs Blockchain
Blockchain and hashgraph are two distributed ledger systems that differ significantly from one another. Hashgraph is thought to be more effective, secure, and scalable than blockchain, despite the fact that both technologies promise to provide a secure and decentralised method of data storage and sharing.
It will be interesting to see how these technologies develop and are used in the future as the demand for distributed ledger technology increases. One thing is certain, though: Blockchain and hashgraph both hold great promise for revolutionising how we share and keep data.