Hashgraph, a new distributed ledger tech, competes with Blockchain
Hashgraph, a new distributed ledger technology system that has a competitive edge over blockchain has emerged. The hashgraph consensus algorithm has been developed by the software platform Swirlds, whereby the need for massive computation and significant energy consumption has been eliminated.
As compared to the blockchain technology, hashgraph is 50,000 times faster as it is able to perform more than 250,000 transactions per second, as compared to Bitcoin’s 7 transactions per second. It also has a mathematically proven fairness, as the order of transactions cannot be manipulated, while the blockchain world enables a miner to change the order of the occurrence of transactions in a block. A smart phone can also act as a node because the amount of storage needed is only 1 Gb. The effects of the transaction are only necessary for storing, and the rest is discarded, which reduces the amount of storage.
In addition, Hashgraph came up with their own consensus algorithm, where no member can prevent the community from reaching consensus, nor change it once it has been attained.
This algorithm uses a voting system, called “Virtual Voting” that removes the necessity to do the votes. To achieve conesus, Hashgraph uses a protocol called “Gossip about Gossip”. Gossip, a known computer science term, is defined as calling any random node and telling that node everything you know, that it does not know. When it comes to distributed ledger technology, the “baseline” or minimum bandwidth required is that the transactions go to every node. Gossip about Gossip is attaching a small additional amount of information to this Gossip, that contains the last person we talked to. This means we are gossiping about the information we gossiped. The Hashgraph can be built using that information.