New Blockchain Technology – Hedera Hashgraph
September 19, 2019
New Blockchain Technology: Blockchain is one of the most promising Distributed Ledger technology out there. Bitcoin the game-changer in digital currency was built on the blockchain. Blockchain is a chain of blocks, which stores the transaction records. Also, each block has the cryptographic hash of the previous block. Blockchain is a peer to peer network that’s is decentralized. , distributed and public digital ledger So any changes to the data in the ledger cannot be achieved without the consensus of the network
Blockchain has its limitation. The consensus method used in the blockchain is Proof of work or POW. Blockchain uses proof of work (POW) as consensus mechanisms, and this is known to have problems in speed, cost, and security.
The Hedera Hashgraph platform is a distributed ledger technology developed by the cryptocurrency startup Hedera as an alternative to the blockchain. The goal of Hedera hashgraph, as claimed by them on their website, is to have the highest security DLS system and have fast transaction speeds and low fees. Hedera hashgraph claims that it can process 10000+ transactions per second as against three by bitcoin and 12+ by Ethereum. Its build with a consensus algorithm different from blockchain to address the challenges in blockchain like speed. Instead of a chain of a block as in Blockchain Hashgraph uses directed acyclic graphs for time sequencing.
Hedera Hashgraph platform
Hashgraph platform is based on two key concepts – gossip about gossips and virtual voting.
Hashgraph uses virtual voting, a voting-based consensus algorithm that uses gossip about gossip to achieve the consensus. The voting-based consensus is not something it had been in use, its highly secure, but one of the drawbacks is that it’s not practically feasible. Hashgraph has tried to take the core feature of voting consensus and modified it by adding gossip about gossip to mitigate the more extended throughput in achieving consensus.
In Gossip protocol, a node randomly picks another node and shares all the information with the node. Now both these nodes continue to share the information with a newer node repeatedly. This sharing is done until all the nodes in the network received the information. Hash graph is a data structure that records all the gossips in order
In gossip about gossip also adds information on the origin of the new information, i.e., that hashgraph is spread through the gossip protocol. So, when a node receives the data, it has the history of who talked to who in the network.
All nodes keep a copy of the hashgraph with timestamp, hashes, transaction and digital signature’s then use the virtual voting algorithm to reach consensus without the need to send a vote.
Hedera hashgraph platform offers three service – cryptocurrency payments, smart contracts, and file service
Hedera Hashgraph Development
Hashgraph has released open-source SDK for developing an application in Java. The SDK supports three services on the platform smart contracts, micro storage for file storage, and cryptocurrency. Developers needs to use the platform coin to use the API to make a call to one of the services.
Hedera Hashgraph Cryptocurrency
The native cryptocurrency used in the Hedera network is HBAR. The developers don’t need to have a license to use the platform. Instead, they use HBAR to use the API call to the three services offered by Hashgraph, smart contract, storing a file, or transferring cryptocurrencies. It allows fast micropayment and has low network fees. HBAR is also used to protect the network from malicious attack.
Hedera hashgraph New Blockchain Technology ecosystem is developing. They have various clients from different verticals developing on Hedera platform according to their website. If Hashgraph can provide a distributed public ledger which is fast and secure, it will game-changing in the crypto world. However, we will get to know more about this as we see more adoption in the future.
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