Many blockchain alternatives are emerging as the world moves toward extremely transparent and highly robust distributed ledger technology (DLTs). These DLTs, which are progressively being used by companies all around the world, also make it easier to keep track of transaction data records.
The Hashgraph is one such distributed ledger technology. Because of its efficiency, speed, and security, the technology is quickly gaining traction. In fact, those who use it, claim that it outperforms blockchain technology in several ways.
So, which is actually superior? And, if you use blockchain technology in your apps and processes, do you have to be concerned about the growing popularity of Hashgraph? We will explore the answers to these questions and provide a thorough Blockchain vs Hashgraph comparative analysis below. So, read it thoroughly to gain the best insights.
A blockchain is a distributed shared database that stores data in blocks. Blocks are linked to one another to form a chain known as a blockchain.
once created, the data cannot be altered or modified by anyone.
control In a traditional centralized system, the user has no control over their own personal information, which leads to higher officials or companies utilizing users' personal information for their own profit. However, due to blockchain's superior level of security and transparency, people have complete control over their information.
Traditional centralized banks take a long time to execute an international transaction. As a result, many consumers are unable to rely on traditional banks' slow-moving systems. However, we can process transactions on the blockchain in a matter of seconds.
Process of Verification It uses a verification mechanism such as ECDSA (Elliptic Curve Digital Signature Algorithm) to confirm that the transaction is between two correct nodes. This can be a difficult and complex procedure because each node must authenticate the user's identity.
It takes a lot of electricity to perform complex computing tasks during transactions and even mining.
The main product of blockchain is a cryptocurrency, which is very volatile as its prices fluctuate every second. As a result, cryptocurrencies are not widely acknowledged as a worldwide currency.
Hashgraph is a blockchain alternative that claims to overcome the gaps left by blockchains by employing concepts such as chatter about gossip and virtual voting to accomplish faster and more secure transactions.
Hashgraph claims to deliver the maximum level of security using an aBFT system (asynchronous byzantine fault tolerance).
It can process up to 500,000 transactions per second, making it far faster than blockchains like Bitcoin and Ethereum, and it executes transactions with 100% accuracy.
Its transaction fee is less than one penny, as compared to Bitcoin, which has a transaction fee of between $10 and $30 as of 2021 and a transaction can take up to ten minutes to complete.
Unlike blockchain, hashgraph is a patented technology owned by Swirlds, so developers cannot contribute to it without the company's permission.The popularity of blockchains is primarily due to the involvement of the developer community in trying to experiment with better solutions.
While it claims to be better and faster than existing blockchains, it is still unclear whether it can handle the tremendous load that has badly harmed networks such as Ethereum.
The major factor that has a big impact is the approach taken. And, despite the fact that the basic foundation is the same, these technologies take very distinct methods. A Blockchain stores information in a linear format, such as blocks connected by a single line.At the same time, the hash graph is an acyclic graph used to store data. Every node in both has a copy of the ledger, making it entirely decentralized.
Both technicians provide outstanding security. To secure data stored and transmitted through the network, blockchain employs encryption. As a result, intruders cannot enter the network and steal information.Even if someone tries to tamper with data integrity, the signature concept comes into play since it displays invalid signatures, alerting nodes to suspicious activity.
On the other hand, hashgraphs are built asynchronously. The mechanism ensures that the data is secure even if a malicious actor attempts to take it. The transaction cannot be changed or edited once it has been completed. They both offer the same level of security.
Depending on the platform and cryptocurrency type, blockchain has several approaches to consensus. There are numerous popular consensus algorithms in blockchain, such as proof of work, proof of stake, and so on. NEO is another form of algorithm that is based on delegated Byzantine Fault Tolerance. It is a more advanced variation of the PoF and PoS. The Hashgraph, on the other hand, uses a virtual voting procedure. Hashgraph is more like a consensus algorithm, but experts found it doesn't have anything greater to offer in terms of consensus algorithm than blockchain.
The blockchain's speed varies depending on the solution. However, as compared to the hash graph, it is slower.Hashgraph can reach up to 500,000 transactions per second, but this can vary based on other factors. Blockchain systems, on the other hand, such as Ethereum and Bitcoin, are relatively slow and can only process 10,000 transactions per second. When it comes to the cause of it, the gossip to gossip method makes it possible. With this , less information must be sent over the network, which is beneficial when more events occur on the network.
When we compare the fairness of both technologies, blockchain comes in second, while hashgraph comes out on top. The miners have more control over which orders to process and which to reject. It may be unjust to the people who are present on the network, either directly or indirectly. Because it assigns random nodes, hashgraph technology is more fair than blockchain technology. It uses time-stamped consensus to ensure that no one is affected as a result of the transaction order. One of the most praised features of hashgraph is its fairness, which was lacking in the blockchain.
The cost of transactions varies on the blockchain, with larger fee transactions receiving priority. The transaction cost is typically greater than $15, and the transaction speed is limited, ranging from 4 to 15 seconds. It can go up to $25 to $30 if the transaction speed is faster. In the case of hashgraphs, the transaction cost is the same. However, the price can vary depending on a number of things. The minimal price might begin at $0.0001.
Due to the approach used, hashgraphs have been shown to be more efficient. The blockchain approach makes it impossible for miners to operate on both blocks at the same time. That means the miners must discard one of the two blocks. As a result, efforts are wasted, and network efficiency suffers. The hashgraph, on the other hand, does not rely on blocks and instead operates on events. So it is not affected by the problem that exists in blockchain networks.
When it comes to blockchain adoption and development, there is no better technology than blockchain. In comparison to hashgraph, it has been in the industry for a long time. There are numerous instances where blockchain technology has been proven to be successful, such as its support for dApps and smart contracts.
The hashgraph is still a long way from the blockchain in terms of adoption and development. Above all, it is still a patent technology, and the public version is still in the process. Many businesses use hashgraph, but the number is insignificant in comparison to blockchain use.
We analyzed the advantages and disadvantages of each technology. After learning all of the technicalities, you may be wondering if hashgraph will eventually replace blockchain. An honest response is still difficult to come by because several business sectors have researched blockchain more than hashgraphs. However, hashgraph is on its way to reaching various business verticals.
Based on some characteristics, we can say that hashgraph is superior to blockchain and has solved the blockchain's difficulties, and vice versa. However, based on the exposure and applications, blockchain is being widely adopted by numerous businesses and is enjoying continued success. We hope to determine which one is the greatest over time.
|Mining||Mining is used in blockchain.||Hashgraph does not use mining.|
|Integrity||Using numerous identities makes it easy to copy/fake transactions.||It verifies transactions using digital signatures, which cannot be reproduced or faked by any human or computer.|
|Scalability||It has scalability and transaction per second limitations.||High transaction per second and scalability.|
|Programming language||A variety of programming languages are used.||LISP and Java are two programming languages.|
|Platform||It is a DLT platform that is open source.||Swirlds owns the patented algorithm.|
|Transaction per second||It is capable of processing 100 to 10,000 transactions per second.||It is capable of processing up to 500,000 transactions per second.|
|Algorithms||Blockchain uses a variety of consensus techniques, including proof of work (PoW), proof of stake (PoS), proof of capacity (PoC), and others.||Hashgraph achieves network consensus through virtual voting.|
|Efficient||It is less efficient than Hashgraph||Completely effective|
|Power consumption||Mining necessitates a large electricity supply and extensive computer calculations to verify transactions.||It does not require a lot of computer power or electricity.|
Hashgraph is a well-known advanced technique. However, there is no guarantee that it will totally replace the blockchain in the future. Because Hashgraph is privately held, industry adoption is slow. Do you have a clear grasp of the two cutting-edge technologies? If so, you may quickly determine which one you like based on your requirements. Whether you intend to establish a blockchain or hashgraph-based application, the first step is to confer with professionals, either a blockchain development company or a hashgraph development company, depending on your needs and budget.