The popularity of Blockchain needs no introduction to anyone and most of us might be familiar with the word Bitcoin too. Leave aside the meaning of the term, a majority of people aren’t just concerned about it as long as it doesn’t become a disruptive technology to make a mark over the minds of the masses.
Blockchain has already been incorporated into systems of so many sectors that ultimately, we can say that future might get behold by it. Numerous IT companies are working in their respective specializations for flawless implementation of Blockchain technology.
What is Blockchain and how does it work?
Blockchain is a growing list of records, called blocks that are linked using cryptography. Each block refers to the previous block and together make the Blockchain. Blockchain is not just a technology but also the next generation of the Internet that has varied applications in day to life.
Blockchain with its decentralized and trust-less features can lead to open up new opportunities and benefits for many enterprises. You might remember that there were days when businesses had no fool-proof way to validate ownership of a digital asset or secure it, but that’s not the case at present as Blockchain has a pancreas for such problems. Verification of a transaction in a public network is not safe in the current time, so here Blockchain brings private and permissioned networks to suit enterprises. Now take an instance of a transfer of shares of ownership in the current scenario that requires much of paper works, a trusted entity to look over, or a legal advisor. Here Blockchain can play an important role by providing a trust-less secure environment which can be even over a public network.
Blockchain can even remove the need for a third-party arbitrator like legal advisors. The creation of digital assets too is now possible with the emergence of Blockchain, which was earlier not thought of. In fact, Blockchain is the first technology to allow you to transfer digital assets in a very secure and decentralized way.
What is Hedera Hashgraph?
Hedera Hashgraph is based on DLT technology like blockchain that works on Graph like structure where all the nodes communicate their information to each other and their communication is reported by building a graph of connections. Further, all those information or data is stored in events.
Hashgraph is a distributed ledger technology that functions over the Asynchronous Byzantine Fault Tolerance consensus algorithm, which is capable of securing the platform against attacks. Security, fair conditions, and a high level of performance are some of the main features offered by Hedera Hashgraph that make it stands out as unique in terms of the functioning of dApps.
Hedera Hashgraph had been widely used and deployed by various Hedera Hashgraph development company worldwide and there had been a great deal of confusion over how and in what way Hedera Hashgraph must be deployed to get its full potential.
Differences between Blockchain vs Hedera Hashgraph
Now, you must need to know the differences between Blockchain and Hedera Hashgraph for a better understanding. So, here we have covered those differences on a categorical basis.
Open source vs patented product
It’s an open secret that Blockchain is an open-source technology to run over the DLT platform and it can be contributed by many people to build utilities like cryptocurrencies and other utility tokens. Moreover, Blockchains have created their niche around some business houses due to their decentralized nature after defining their quality.
Whereas Hedera Hashgraph is a patented product owned by Swirlds, so as a new user you have to pass through Swirlds.
Speed of transactions
In Blockchain the speed depends upon the implementation of protocols such as Hyperledger, or solutions such as cryptocurrency, blockchain platforms such as Ethereum, Corda, and more.
Compared to Blockchain, to provide faster transaction speeds Hedera Hashgraph uses the gossip about gossip protocol as it requires less information to propagate with more events taking place.
No doubt, Blockchain is way much slower than Hedera Hashgraph which can process up to 500,000 transactions per second.
Efficiency at Blockchain comes to question since it uses a block approach which makes it difficult for more than a number of miners to work on it, as at the same time only block can be mined. While the other blocks which are being mined get discarded, and the efforts are wasted.
Compared to this, Hedera Hashgraph is much more efficient, as no resources are wasted or discarded. Here all events that are gossiped about to the network are reserved, which makes it 100% efficient.
Consensus reaching mechanism
The consensus mechanism in Blockchain greatly depends upon cryptography and currencies. The most widely used algorithms used in Blockchain are Proof-of-Stake, Proof-of-Work, Proof-of-Elapsed Time, Practical Byzantine Fault Tolerance, etc.
To achieve the same consensus Hedera Hashgraph uses virtual voting. Now in this mechanism, there is no need for other algorithms as they can provide low-cost and high performance without failure. Apart from that, even operating costs can be minimized as there’s no need for high computation power and electrical supply.
At present, it might seem that Hedera Hashgraph might have a lot of advantages compared to Blockchain, which too offers whole new advantages. Apart from these above-mentioned most important factors, the full potential of Hedera Hashgraph is still waiting to be tested. Moreover, Hedera is theoretically said to be based upon decentralized architecture, but the outer government still controls its pace. Even the history of transactions is limited to a short number in Hedera Hashgraph, as in case the record is long, it can’t track it!
Now compared to it Blockchain has already proven its worth in its potential and comes with various features from which many sectors had already reaped many benefits.
Hedera Hashgraph is no doubt a wonderful technology but Blockchain is a versatile technology that is growing and had been already adopted by a number of enterprises. As of now, Hedera Hashgraph is still in the nascent age and has a long way to go to replace the Blockchain.