Hashgraph, Blockchain Competitor that is More Fast and Safe.

Although Blockchain is the leading technology in the crypto world, there are other methods of processing and storing data that have the potential to rival it, namely Hashgraph.

What is Hashgraph?

Hashgraph is a distributed ledger technology developed in 2016 by Leemon Baird, Co-founder and CTO of Swirlds Corporation . According to the explanation of one Reddit user, the Hashgraph is a superior consensus mechanism or an alternative data structure from the Blockchain. Can also be called a decentralized platform without a server. Therefore, the Principle of decentralization is one thing that unites the Blockchain and the new platform.

If you already understand Blockchain technology, you will understand about using consensus to record transactions. Hashgraph uses a slightly different approach from consensus, because it implements the gossip protocol that works in the following way:

• Each node of the system distributes marked information (this is called an event ) about current transactions and previously to random neighbors .
• The neighbor (node closest to the current transaction) processes the information they receive and sends it to another node.
• The process continues until all nodes get new information.

The entire process that occurs on this network does not take much time. This is because the size of the gossip is only about one or two bits, so the transaction processing speed can be very short, around 250,000 TPS (Transaction Per Second) . For comparison, Bitcoin does 5 transactions per second, depending on bandwidth . Meanwhile, Ethereum allows around 15 transactions per second.

Leemon Baird uses tolerance of Byzantine errors, which means the transaction is valid when more than 2/3 nodes are aware of the transaction. However, the Hashgraph is only used in permitted personal settings . If anyone can join Bitcoin, Ethereum, and other major public Blockchain as nodes, then on Hashgraph, each node must be approved by the network administrator.

In addition, unlike the number of Blockchain nodes at any given time, the number of nodes in the Hashgraph must be known by the network. Therefore, each node's identity is known and can be trusted. This is why Hashgraph can operate so fast. Critics note that the speed of the Hashgraph algorithm and the Blockchain protocol cannot be compared, because many of the Blockchain nodes are established without permission and are general in nature.

How does the Hashgraph work?
The Hashgraph algorithm operates through two techniques:

1. Gossip About Gossip

The first technique is used to share information and is referred to as gossip about Gossip . To understand how it works, imagine five members: A, B, C, D, and E. Each member starts with a transaction that produces an event . Then, each member calls other members randomly selected and both share their transaction history.
For example, D calls B and shares the history of D transactions with B. This type of call occurs repeatedly, with each member randomly calling other members and sharing their transaction history. So, B now randomly selects another member (say C), and shares the transaction history, which includes the D transaction history. Simultaneously, E may have called A, and so on. Each call produces an event , and each event holds a hash from all previous blocks.
This event graph looks like a tree, where communication points between nodes occur randomly to produce an open consensus:

2. Virtual Voting

The second technique of Hashgraph is Virtual Voting, and the aim is to reach consensus on the order of transactions.
Here's how it works:

1. The event is divided into several rounds. The Hashgraph algorithm has definite mathematical answers when the round is made. Simply put, imagine that one round has around ten events.
2. Now, each member votes to determine which event must qualify as a "witness". To understand how this happens, imagine that each member with an event in the next round looks at each event in the previous round.
3. If he can trace the line back to an event , he chooses "Yes" for the event , and if not, he chooses "No". Event rounds with the most votes are decided as "witnesses" for the current round.

Does the Hashgraph have a crypto currency?

After realizing the potential of Hashgraph, many internet users began to wonder whether Hashgraph had a product in the form of crypto currency like on the Blockchain network. The fact is, that Leemon Baird hasn't introduced coins from Hasgraph and he remains the only legal owner of this technology system. However, his team is working on the Hedera Hashgraph network that will introduce its own tokens .

Blockchain vs. Hashgraph, What's the Difference?

Hashgraph is a patented algorithm that promises benefits from Blockchain (decentralization, distribution, and security through the use of hashing ), without lack of low transaction speeds. Overall, there are some key differences between Blockchain and Hashgraph technology:

Blockchain :

• Use the proof of ownership mechanism and proof of work to reach consensus.
• Relatively slow.
• Data is stored in ledgers on nodes that are directly involved in consensus.
• Can be used to mine crypto currencies.

Hashgraph :

• This platform utilizes a new type of consensus mechanism, based on gossip about gossip_ and Virtual Voting.
• Process transactions faster.
• Data is stored on all computers on the network, which makes it impossible to hack.
• No mining will be used, the node will process transactions automatically with gossip about 1-2 bits in size.

Will Hashgraph Replace Blockchain?

As a revolutionary technology in several aspects, Hashgraph is an efficient consensus protocol and can help users enjoy the security and speed of transaction processing. But if we talk about public use, it is possible that Hashgraph will face the same problem as the various public Blockchain networks that exist today.
There are still various possibilities that might occur. If Hashgraph is able to make a decentralized technology network stable, then this technology might be a better choice than Blockchain.

The Blockchain may still be problematic in terms of speed, but the benefits can already be adopted in various fields of life.