Hedera Hashgraph vs Blockchain: A Quick Comparison

In 2008, Bitcoin was created as the first digital currency in the world. It was built on the blockchain. This technology created a new monetary network using the distributed ledger system.The distributed ledger technology (DLT), which relies only on peer-to-peer networks, is a better model that could allow industries to harness computing power in a way never seen before. We are closer to the new trust layer on the internet than the client-server model.

Due to problems still to be solved in scaling, efficiency, and interoperability, the transition is limited. Hashgraph was founded by Leemon Baird (the co-founder and chief technology officer of Swirlds) and offers a viable alternative to blockchain. It has features such as speed, security, fairness, and cost.This article explains the differences between two DLTs: Blockchain and Hashgraph.

What is a Distributed Ledger Database?

A distributed ledger database can be described as:

The ledger of all transactions and sharing contracts is synchronized across multiple locations and people to ensure that they are maintained in a decentralized manner.

Eliminating the need for a central authority

The distributed ledger (DL) contains all information that is encrypted and kept secure. Although centralized ledgers can be vulnerable to cyber-attacks, it is much more difficult to attack distributed ledgers (DLs). All nodes must be attacked simultaneously and then manipulated.

The Blockchain and Hedera Hashgraph have different data structures and consensus mechanisms for maintaining Distributed Ledger Databases.

What is blockchain?

Blockchain Technology is a Distributed Ledger Technology of the first generation. It works on a sequential data structure that forms a chain made up of blocks.Each block contains a collection of transactions.The blockchain is based on consensus mechanisms such as:

Evidence of work

To create a consensus mechanism, you must solve a puzzle using computation to reach a consensus within the network and secure the block. This is also known as mining, and the network's members are called miners. These puzzles are solved by the members/nodes to validate transactions, add blocks, and earn rewards.

Evidence at stake

It's a consensus mechanism where a creator or validator can be selected based on their contributions to the network. Validators are chosen to add blocks to the blockchain and verify their contributions.

Evidence of Elapsed Time

It prevents high energy consumption and resource use by following a fair lottery process. The algorithm is often used in permission networks, where participants must identify themselves before they can join the network. It offers a fair chance of winning. Also, blockchain application development companies in the USA are creating better platforms every day.

Leader-based Consensus

The leader computer is the brain of this mechanism. Each member of the network sends transactions directly to the leader's computer, which then adds the transactions to the chain.

Consensus-based on the economy

This mechanism is called economic rationality. The consensus algorithm attempts to mimic the functioning of an economy without having to deal with the chaos of a real-world one. A vote is possible to add blocks.

While you may be subject to a fine for voting for a block that no one else votes for, you could also earn a profit by voting for a block that everyone else has voted for.

Consensus-based on voting

Voting-based consensus requires that nodes be familiar with each other and be flexible. Each node in the network must verify blocks together and maintain the ledger.

Blockchain: Smart Contract Modifiability

The blockchain solutions network makes smart contracts immutable. This means that smart contracts cannot be altered once they have been written to the blockchain. A new contract, however, can be used in place of a smart contract. This is similar to modifying a smart contract. An intermediary smart agreement can be used to hold the address of the active smart contract. It can also serve the function "delegate call", which will redirect all transactions and calls to that active version.

Another option is to extract your previous contract information and add it to a brand new one. Then, update the address that you wish to be able to view by updating the address.

What is the Hedera Hashgraph?

Hedera Hashgraph employs Distributed Ledger Technology (DLT), which is similar to blockchain.It uses a graph-like structure in which all nodes exchange information. The graph of connections is used to report their communication.All information and data are stored in events.

To bring about consensus, it relies on the "Gossip about Gossip" and "Virtual Voting" mechanisms.

Gossip on Gossip<.h6>

It is used to sync or transfer information from one node (or more) to another. This is used to make sure that all data is circulated to all members of the network.

Virtual Voting

The Gossip About Gossip mechanism allows each node to know what the other knows and can then predict the vote of the other, resulting in electronic voting. Voting messages cannot be sent across the network using the virtual voting algorithm. Every member can see information about how another member voted, even if they are not voting.

The Hedera Consensus Service

The Hedera Consensus Service can be accessed on the Hedera Mainnet. This allows developers to:

Create verifiable time-stamps

You can create ordered events in any application. The Hedera Consensus Service can be very useful for applications that have a need. There are privacy controls that are specific to each application.

High output and conclusiveness when ordering

Auditability in real-time

Hedera Hashgraph Platforms

Open Source SDK

Hedera Hashgraph, a next-generation distributed ledger system, has released an open-source SDK for Java developers. This SDK allows developers to create Hedera Hashgraph development apps.

The open-source SDK of Hedera supports three services on the platform: File Storage, Smart Contracts, and Cryptocurrency.

The SDK provides all the necessary tools to create public/private key pairs, and sign transactions.

Mainnet Testing Platform

Hedera Hashgraph has just announced the second phase of the Community Testing Program for the Hedera Platform. This program allows developers and users to test different network capabilities before the main net is open to access. The blockchain application development company will make the Android and iOS versions, as well as the Hedera Browser Extension and WordPress plug-in, open-source. This is in collaboration with phase II testing. These applications will be used during the community testing phase to verify P2P micropayments.

Hedera Hashgraph Transaction Confirmation Methods

Clients can request acknowledgement from Hedera that a transaction has been added to a consensus state after they have made it. If you need to transfer Hbars to purchase coffee, the coffee shop may request confirmation that the payment was received. The following confirmation mechanisms are available from Hedera Hashgraph for anyone to choose from:

Response

A client can submit a transaction to a particular node. The node will check the transaction quickly and provide the result to the client before the transaction is submitted. If the check is positive, the node will add it to the network. The client will receive a response from the node confirming that it is honest and will add the transaction to the network. The confirmation from the node confirms that the transaction will alter the consensus state.

Receipt

Nodes will receive a receipt for a transaction that has been submitted to the network. A client can query a node to inquire about the transaction status. A receipt contains very little information. Whether the transaction was successfully added to the consensus state.

The object's identifier Hedera Hashgraph Cryptocurrency (HBARs)

To grant token holders access to Hedera Hashgraph-based distributed apps, the Hedera Hashgraph platform uses Hbar, a utility token.Hbar is fast and allows micropayments. It also offers low network fees. Users on Hedera Hashgraph can be rewarded with Hbars if they help launch the node. The Hbar cryptocurrency can be used in a variety of ways, including digital content monetization or influencer activity monetization.

Mutability of Smart Contracts

Smart contracts can be hampered by bugs and erratic behavior under certain conditions. Once deployed, smart contracts cannot be changed, no matter if one needs to fix a bug, or add new functionality. The only way to do this is to create a new contract.

Hedera Hashgraph offers an alternative mechanism that allows smart contracts to be subject to binding arbitration. The Hedera Smart Contract is immutable. However, it can be modified if multiple smart contract developers agree. Developers have the option to select whether or not to modify a smart contract deployed on Hedera.

Another option is to deploy a contract that contains a list of the public keys of arbitrators. This would enable arbitrators to modify the contract's code and add features. It also allows them to reverse transactions or fix bugs.

Hashgraph vs. Blockchain

Hedera Hashgraph, on the other hand, is a distributed ledger technology that uses the same data structure as the blockchain but has a better consensus mechanism.

The Hedera Hashgraph algorithm doesn't require proof of work or leader-based systems. It is capable of delivering low-cost, high-performance results without any single-point failure. Hashgraph doesn't require high computing power or electrical supply.

Each blockchain platform operates at a different rate in terms of transaction speed. Bitcoin can perform 7–10 transactions per second, Ethereum can do 15-20 transactions per second, and Hyperledger Sawtooth is capable of performing thousands of transactions per second.

Hedera Hashgraph can perform hundreds of thousands of transactions per second as the information travels exponentially.

Hedera Hashgraph is also fairer than blockchain in that miners can decide the order of transactions and can even delay or stop them from entering the block. Hashgraph, however, uses a consensus on timestamp, which prevents individuals from changing the order of transactions.

Although Hashgraph is a promising technology it has some limitations. The technology is currently only available in permission-based private networks. The technology is still being tested in a public network. The Gossip About Gossip technique states that if a node transmits information to another node the nodes closest to the node can be malicious. This could prevent information from being passed to other nodes.

Although the Hedera Hashgraph technology is very intriguing, its true potential and effectiveness will be revealed once it is made available to the public.

PerfectionGeeks Technologies has a team that builds distributed ledger applications for multiple industrial uses.So, contact our experts and get an opportunity to work with us.