Difference Between Blockchain and Hashgraph
Blockchain and Hashgraph are similar technologies that are used to store transactional data. Both are distributed ledger technologies. The article focuses on discussing the difference between Blockchain and Hashgraph.
What is Blockchain?
A blockchain is a shared distributed database that stores information in blocks. Blocks are linked with other blocks forming a chain known as a blockchain.
Pros of blockchain:
- High Level of Integrity: once the data is being created, this data cannot be altered/modified by anyone
- Full control of information: In a traditional centralized system, the user doesn’t have control over their own personal information which results in misusing of users’ personal by higher officials or companies for their benefit. However, blockchain’s higher level of security and transparency gives full control to users over his/ her information.
- Faster Transactions: Traditional centralized banks takes a lot of time to process a transaction overseas. So, many consumers can’t rely on traditional banks’ slow-paced systems. However, in blockchain, we can process a Transactions in few seconds
Cons of blockchain:
- Verification Process: It uses a verification algorithm like ECDSA (Elliptic Curve Digital Signature Algorithm)to ensure that transaction between two correct nodes. This can be tricky and a complex process as every node needs to verify the user’s identity.
- Large Energy Consumption: it requires a lot of electrical energy to perform complex computational problems during the time of transaction and even during the time of mining.
- High volatile: The main product of blockchain is a cryptocurrency, which is highly volatile as its prices dip every second, as a result of which cryptocurrency are not fully accepted around the world, as a global currency.
What is Hashgraph?
Hashgraph is an alternative to blockchains that claims to overcome the gaps left by blockchain, it uses concepts like gossip about gossip and virtual voting to achieve faster and more secure transactions.
Pros of hashgraph:
- Security: Hedera Hashgraph claims to achieve the highest level of security through a system called aBFT (asynchronous byzantine fault tolerance)
- Fast Transaction: It can process up to 500,000 transactions per second, as a result, it is much faster than blockchains like Bitcoin and Ethereum and it processes a transaction with 100% certainty.
- Low Transaction fee: Its transaction fee is under 1 cent, as compared to Bitcoin whose transaction fee is between $10 – $30 as of 2021 and it can take up to 10 minutes to complete a transaction
Cons of hashgraph:
- Open source: Unlike blockchain, hashgraph is a patented technology owned by Swirlds, as a result of which developers can’t contribute to it without the company’s permission. The main reason for blockchains’ popularity is the developer’s community involved, trying to experiment with better solutions.
- Uncertainty: though it claims to be better and faster than other blockchains, it is still uncertain whether it can be used to tackle the massive load, which has, severely damaged networks like Ethereum
Blockchain vs Hashgraph
Below are some of the differences between Blockchain and Hashgraph:
|Mining||Blockchain uses mining.||Hashgraph doesn’t use mining.|
|Integrity||It is easier to copy/fake transactions using multiple identities.||It uses digital signatures to verify transactions, so they cannot be copied or faked by any person or computer.|
|Scalability||It is limited in terms of scalability and transactions per second.||High scalability and high transactions per second.|
|Introduced||Introduced through bitcoin in 2008.||Introduced in 2007.|
|Programming language||Different programming language is used.||The programming language includes LISP and Java.|
|Platform||It is an open-source DLT platform.||it is a patented algorithm owned by Swirlds.|
|Transactions per second||It can process 100 to 10,000 transactions per second.||It can process up to 500,000 transactions per second.|
|Algorithms||Blockchain uses various consensus algorithms such as proof of work (PoW), proof of stake (PoS), Proof of Capacity (PoC), etc.||Hashgraph uses virtual voting to gain network consensus.|
|Security mechanism||A third party is needed to validate the transactions between parties.||Hashgraph uses gossip about gossip protocols to validate transactions.|
|Applications||Applications are Bitcoin, Ethereum, Hyperledger Blockchain Projects, and EOS.||The application is Swirlds.|
|Fair||It is Moderately fair.||100% fair.|
|Efficient||Less efficient than Hashgraph.||100% efficient .|
|Power consumption||While mining, it requires a high electrical supply and involves heavy computer calculations to verify transactions.||It does not need high computational power and high electrical supply.|
|Control over data||Miners have the power to cancel a transaction or postpone a transaction.||Validation of transactions is as per consensus.|
|Went public||It went public in 2008.||It went public on August 24, 2018.|
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