If you are familiar with the blockchain industry, it is no longer news that its growth has been exponential. Nonetheless, Blockchain is not the only Distributed Ledger Technology (DLT).
There are equally adaptable DLTs that are on the path to displacing blockchain technology. Some of these DLTs show they are ahead of the pack by providing better functions and superior solutions.
Hashgraph is one of them. This DLT solves the distributed ledger in a different manner. It has also amassed the bragging rights of being faster and more secure than Blockchain. But the technological advancements of Blockchain and its quick way of the transaction make it the first choice for any user.
Hashgraph vs Blockchain are undoubtedly competitors, so it isn’t surprising that there is a widespread debate over “which is better,” and this has lingered on for the past few years.
So here comes the big question.
Hashgraph vs Blockchain, which is better?
We’re about to find out.
Let’s compare these two technologies and see where each stands.
What is Blockchain?
Blockchain is the concept behind blockchain technology. It is a decentralized, immutable digital ledger that is almost impossible to forge, corrupt, or hack. This means it stores data or information so that it cannot be changed after it has been created.
What is Hashgraph?
Already being considered the Next Generation Blockchain, Hashgraph technology, on the other hand, is a fascinating alternative to Blockchain. It is a platform that uses a consensus approach similar to Blockchain. It isn’t a complete system and, specifically, a distributed ledger technology with structured algorithms.
The two technologies, Blockchain and Hashgraph, have been in the news lately.
While the major difference between these two technologies is that one is a method for recording facts and keeping records, and the second is a computerized distributed ledger, we still have a big question to answer.
Would you want this type of technology in your everyday life? Let’s find out in this article on Hashgraph vs blockchain
Hashgraph vs. Blockchain
There are so many factors to consider when comparing Hashgraph vs blockchain. We carefully listed the most significant comparisons between these two great ledgers. Let’s get started
Hashgraph vs. Blockchain: Transaction
When compared to the Blockchain, Hashgraph is more efficient. It is faster than the Blockchain and can reach up to tens of thousands of transactions per second, in contrast to Bitcoin’s mere 6-7 transactions per second and Ethereum’s 15 transactions per second.
Hashgraph vs. Blockchain: Transparency
One of the most significant points of contention in the Blockchain vs. hashgraph debate is that, while hashgraph is more transparent, Blockchain is more open-source.
Through the use of blockchain technology and Blockchain being a distributed Ledger, transaction histories are becoming more transparent as all network users share the same record of transactions as opposed to individual copies. That shared version can only be updated through a consensus, which means everyone must agree on it.
Despite that, hashgraph has a higher level of transparency because all of its data is available to view via consensus timestamps. In contrast, Blockchain is not always transparent because some data can be encrypted.
Those who prefer transparency claim that it ensures overall security in the network and allows for better performance at scale. However, those who prefer open-source argue that encryption makes networks more secure than when all transactions are public.
Hashgraph vs. Blockchain: Security
The cryptographic hashing used in Blockchain makes Blockchain so secure and impossible for hackers or entities such as governments to corrupt it.
However, it will interest you to know once again that hashgraph is more secure than Blockchain due to its Asynchronous Byzantine Fault Tolerance (aBFT) consensus algorithm that handles security at a much higher level. This also makes hashgraph more energy efficient than the Blockchain.
Hashgraph vs. Blockchain: Processing
Currently, Blockchain is slow compared to Hashgraph.
How much faster is Hashgraph than Blockchain?
Well, that depends on your starting point. But let’s just say if you’re driving a BMW i8 and want to ride in a Formula One race car, you might be interested in hearing about Hashgraph technology.
This is because Hashgraph moves information around differently than Blockchain does. And even though both technologies compete for the same space, neither one should be your enemy. In fact, it’s possible (and likely!) that the two will co-exist someday as complementary technologies for processing transactions more efficiently.
Hashgraph vs. Blockchain: Speed
The entire point of Blockchain is maintaining a decentralized network that can record transactions without the need for a trusted third party (such as a bank or government). At its most basic level, each node holds a copy of the ledger, and every time there is a new transaction, it is sent out to all the nodes on the network so they can update their ledgers accordingly.
Blockchain uses a consensus algorithm called Proof of Work (PoW), which relies on miners to resolve conflicts about what should be included in blocks added to the chain.
Given how slow this process is, it does not make sense for many commercial applications.
For example, if you’re using Blockchain for your digital wallet, you will have to wait 30 minutes before your transaction is complete! That’s totally unacceptable from a user experience standpoint.
So what makes Hashgraph different?
Rather than PoW, Hashgraph uses “gossip about gossip” and “virtual voting” protocols to achieve consensus — or agreement across all participants in the network — which allows it to process thousands of transactions per second (more than both Visa and Mastercard).
This means that when you purchase something at Starbucks using Hashgraph instead of Bitcoin or Ethereum, you’ll get your coffee immediately rather than having to wait 30 minutes while your transaction processes through the Blockchain.
Looking Into The Future
What does the future have in store for Blockchain vs Hashgraph? One can only speculate. While blockchain technology is being used to build many new applications, we are still a long way from mainstream adoption.
The first thing that needs to happen is scalability. Right now, Bitcoin processes around 7 transactions per second, and Ethereum processes around 15. As mass adoption becomes a priority, this number will need to increase dramatically.
Nonetheless, there are many projects geared toward improving blockchain technology’s scalability, such as sharding and the Lightning Network.
With regards to Hashgraph, another factor that needs to improve is the speed at which nodes communicate with each other. Right now, it’s prolonged and inefficient due to its use of UDP (User Datagram Protocol) instead of TCP (Transmission Control Protocol). With some simple modifications, though, hashgraph could potentially process more than 250k transactions per second!
Is There A Clear Winner?
There is a clear winner, isn’t there?
After comparing these two technologies in terms of function, it’s safe to say Hashgraph outperformed Blockchain.
As a result of the many benefits, Hashgraph has a number of new use cases that have emerged. Hashgraph is faster, more efficient, and less costly than Blockchain. It is also more secure, has better performance (more transactions per second), and scales better.
Since Hashgraph has only a single consensus algorithm (Gossip about Gossip and Virtual Voting) as opposed to multiple consensus algorithms in Blockchain, it can easily be used by governments, businesses, and the general public.
Hashgraph corrects the limitations of Blockchain. There you have it!