CONTACT
ao

Hashgraph Vs Blockchain: A Detailed Comparison

The blockchain sector has gained massive popularity in recent years and has been evolving continuously ever since.

Hashgraph Vs Blockchain: A Detailed Comparison

If you work in the blockchain industry, you are aware of how quickly it is constantly developing. There are also other comparable distributed ledger technologies (DLT) that can take the place of Blockchain by offering a superior alternative.

Hashgraph is a DLT of this type. It claims to be safe, quick, and fair because it approaches the distributed ledger differently. Because of this, we will contrast Hashgraph vs Blockchain to evaluate where each one is in the market today. 

The blockchain-based digital money known as Bitcoin was first offered to the public in 2008. The technology unveiled a brand-new financial network that made use of distributed ledger technology. Let’s get going.

Table Of Contents

Hashgraph vs Blockchain

We should comprehend the fundamental meaning of distributed ledger technology before we begin and investigate.

With distributed ledger technology, a group of peers communicates with one another to come to an agreement. Every node in a DLT is immutable and has a copy of the ledger.

There are numerous other distributed ledger technologies (DLTs), including the two that we will explore today, namely Blockchain and Hashgraph. Distributed ledger technology’s salient characteristics are decentralization, security, transparency, integrity, and speed. All DLTs do not, however, provide every feature.

Actually, DLT can also work well in centralized systems where they can benefit from speed, transparency, and integrity. Fundamentally, blockchain is enabled by distributed ledger technology (DLT), and bitcoin is enabled by blockchain.

Try to comprehend blockchain and hashgraph now.

What is a Hedera Hashgraph?

Hadera Hashgraph? The most typical query we receive. A hedera hashgraph platform called Hashgraph provides a consensus method. It isn’t a comprehensive system and doesn’t use structured algorithms for distributed ledger technology. The platform’s goal is to give users a quick, safe, and fair network experience. It falls mostly within the category of use cases of blockchain alternatives. 

Advantages of Hashgraph

1. Efficient

Hashgraph is renowned for using little energy. The main benefit of this distributed ledger is the competitive advantage it offers. Less than 1 GB of storage would be needed at hashgraph to keep the live ledger. Additionally, the transaction record that you create eventually disappears. Thus, this distributed ledger technology complements artificial intelligence better. 

2. Security

A reliable security system is built into Hashgraph. Byzantine Fault Tolerance is employed (BFT). This shields the network from malicious users, ensuring that every event is accurately recorded. The best thing about it is that it will prevent data from being tampered with even if there is malware or other harmful software present in the system. As a result, the hashgraph’s dependability is greatly increased.

3. Speed

Hashgraph speeds up by using the gossip technique. Less information spreads when the events begin to occur. The gossip mechanism makes it difficult for information to spread from one location to another throughout the network. Therefore, it greatly aids in doing the work quickly to retain the information in one spot for the majority of the time.

4. Less Investment

The fees for Hedera Hashgraph are surprisingly modest and start at $0.0001, depending on how you want to be treated by the system. The hashgraph vs blockchain cost comparison, however, are minimal and far below the $15+ that well-known blockchains charge every exchange.

Disadvantages of Hashgraph

1. Lack of Decentralization

The hashgraph lacks decentralization. Hashgraph has a cumbersome placing-at-one-place centralization system. Even so, technology argues that decentralization is happening over time. The Hashgraph management claims that it is still not entirely centralized.

2. No Mining

Bitcoin mining is time-consuming. A hashgraph, on the other hand, doesn’t need any mind at all. It might not be mineable by the user. They are thus left with no choice but to purchase it. The hashgraph management intends to introduce mining and proof of stake processes. However, there hasn’t been anything done, which makes it uncomfortable for users to use.

How Does Hashgraph Technology Work?

The Gossip protocol is used for data exchange by the nodes or members of the network. Two randomly chosen nodes receive the transaction information, which they then pass on to more nodes. This will go on until there are sufficient nodes for the transaction to be verified at that point. By the way, the nodes do not exchange network information; they just exchange transaction data. Unlike the blockchain, the hashgraph can process transactions more quickly since the data is stored as hashes.

Users may simply trace their history because the transactions are stored in chronological order. The hashgraph is a record of the sequence of all transactions, to put it simply. Every node has access to the complete history of transactions, so they employ rumors and electronic voting to reach an agreement. Since each node already knows how the other will vote, there is no need to coordinate their actions.

Both blockchain and hashgraph can be used to store data, run smart contracts, make payments, and move money. They do hashing, decentralized data storage, high transaction speeds, high security, and other tasks. They can be successfully used in a variety of industries, including e-commerce, healthcare, and banking.

What is Blockchain?

Blockchain is a method of storing data that makes it challenging or challenging to alter, hack, or scam the system. Blockchain development is a sophisticated ledger of transactions that is replicated and disseminated over the network of connected PC frameworks. Every time a new transaction occurs on the blockchain, a record of that exchange is added to each member’s record. Each square in the chain contains different exchanges. 

Distributed Ledger Technology is the name for the decentralized database governed by many participants (DLT). A changeless cryptographic mark known as a hash is used to record exchanges on the blockchain and how it works, a DLT.

This means that if one square in one chain were to change, it would be immediately clear that the chain had been altered. They would need to alter each square in the chain across all of the appropriated versions of the chain in order to destroy a blockchain architecture. As blockchain technology trends squares are added to the chain, effectively increasing the security of the record, blockchains, like Bitcoin and Ethereum, are constantly and consistently developing.

Advantages of Blockchain

1. Decentralization

The main competitive advantage Blockchain has over its rivals is decentralization. Blockchain is said to be decentralized when there are no middlemen needed. The procedure gets considerably smoother once the transaction occurs due to no obstruction and involvement of third parties, minimizing its transaction validation times.

2. Network distribution

Blockchain has a network that is fairly distributed. This implies that it does not belong to a particular location or person. Instead, you can have numerous copies of the same thing available whenever and wherever you need the pertinent data. Additionally, because a node failing does not always mean that the network will fail generally, this trait makes it resistant and resilient to any sort of failure. In a similar vein, there is something else to consider. 

3. Low cost

Blockchain eliminates the need for an intermediary system, making it simple for users to conduct person-to-person transactions. The blockchain is less expensive than its rivals because there are no middleman costs.

blockchain solution

Blockchain VS Hashgraph Best Use Cases

use cases for hashgraph and blockchain

Differences between Blockchain and Hashgraph: How Are They Different?

1. Approach

The fundamental distinction between blockchain and hashgraph is how they operate. Data is stored linearly in blocks on a blockchain. Although the add method is excellent, it is not necessarily the best option for blockchain applications. In contrast, the directed acyclic graph is used by the hashgraph to store and access data. Each node in both DLTs has a copy of the ledger, making them truly decentralized systems.

2. Security

Asynchronous Byzantine Fault Tolerance (aBFT) is used by Hashgraph to protect the network against malicious users. Every event is accurately captured, and the method ensures that no data can be altered even when the network contains some bad actors.

Similar to the blockchain, a transaction that has been finalized cannot be altered in any way. This also implies that a 51% attack cannot succeed against it. On the other hand, the Hedera Hashgraph has modified its use of aBFT slightly. To prevent DDoS assaults from disrupting the network, the consensus method doesn’t employ a leader format. We believe that both Hedera Hashgraph and Blockchain have advantages.

3. Consensus Algorithm

Consensus on a blockchain doesn’t follow a single path. Depending on the platform or cryptocurrency In a blockchain, a variety of well-liked consensus algorithms are employed. Among them are a few that demonstrate work, stake, elapsed time, and other factors. Another well-liked blockchain solution is NEO, which makes use of delegated Byzantine Fault Tolerance. It is a consensus method that has been enhanced by learning from PoF and PoS.

Hedera or Hashgraph In contrast, Hashgraph achieves network consensus using virtual voting. Even while hashgraph is a consensus method by definition, it does have a lot to offer when examined in greater detail.

4. Speed

The speed of blockchain varies based on the solution (cryptocurrency, platform, etc.). However, it is significantly slower than Hashgraph. Hashgraph has a theoretical maximum speed of 5,000 transactions per second. Practically, that could alter based on other elements. Bitcoin, Ethereum, and other blockchain-based solutions are incredibly slow, with a pace of only 100 to 10,000 transactions per second.

Its speed is due to the Hashgraph Gossip technique. With it, when more events happen, less information needs to be spread throughout the network.

5. Efficiency

Hashgraph’s methodology makes it 100% effective. The block structure of blockchain makes it challenging for miners to work on a block. Two blocks can occasionally be mined simultaneously. As a result, only one block remains once the miner community chooses one, discarding the other block. The miners’ labor is ultimately ineffective, leading to a less effective network. Hashgraph is not affected by the issue because it solely relies on events rather than block generation.

blockchain vs hashgraph infographic

Will Hashgraph Replace Blockchain?

Hashgraph, it may be said, has a number of advantages. It is effective, fast, and has low running expenses. It might be a user’s ideal platform. But before using it, you might need to get a patent because it might be sophisticated. Additionally, bear in mind that hashgraph doesn’t have much space for mining. This serious flaw makes it challenging for many users to work on it.

On the other hand, if you use blockchain, it would be inexpensive and decentralized. Blockchain’s characteristics, technological advancements, and speedy transactional methods can make it the user’s preferred choice. 

However, it can have storage concerns, and if your blockchain for business is large, you might have to spend a lot of money to get it.

There are advantages and disadvantages to both of these DLTs. One should be aware of their personal needs and priorities in order to better comprehend the discussion between hash graphs and blockchains and make a decision between the two. The time and money should be spent on a hashgraph if the work needs to be completed more quickly. On the other hand, a person should choose blockchain if they want a superior distribution network. We firmly advise being aware of your decision and acting appropriately.

Final Thoughts

Blockchain and the Hedera Hashgraph are unquestionably two technologies that should be adopted by a company that values innovation. You have two options: either you assign a team of experts to complete this crucial task in accordance with your company’s demands and goals.

We at Appventurez a mobile application development company have been developing custom blockchain-powered applications for almost a decade and we are always ready to help your business as well. We can advise you on the differences between Hedera and blockchain, analyze your business case and offer you the most effective and profitable solution.

Contact us for more information and start working on your groundbreaking project today!

are you looking for app development company

FAQs

1. Is Hedera Hashgraph better than Bitcoin?

However, as the number of users increases, this algorithm consumes a significant amount of energy. As a result, there is one more significant distinction between blockchain and hashgraph. Hedera is much greener than Bitcoin because it uses 885,000 times less energy.

2. Is there anything better than blockchain? 

Hashgraph, Iota Tangle, and R3 Corda are appealing alternatives to blockchain for distributed ledger technology. Directed acyclic graphs (DAGs) are a different type of data structure that is used by both Iota and Hashgraph to keep track of the ledger.


Anand Prakash


Related Blogs

How To Determine The Blockchain App Development Cost?
How To Determine The Blockchain App Development Cost?

The decentralized internet, also known as Web 3.0, is becoming more and more prevalent in the technological world. Technologists and internet pione

Read More
What is DeFi? A Beginner’s Guide To Decentralized Finance
What is DeFi? A Beginner’s Guide To Decentralized Finance

Decentralized finance is abbreviated as DeFi (pronounced dee-fy). It's a young industry that allows users to avoid intermediaries and conduct financ

Read More

We’re your neighbour

Appventurez is a well known mobile app development company in the USA and India that works to build strong, long-lasting relations with its clients in different locations.

india flag appventurez
India (HQ)

Logix Infotech Park, 1st Floor, Plot No. D-5, Sector 59, Noida, Uttar Pradesh 201301

Inquiries : +91-9899 650980

5 Taunton Place Craigieburn VIC Australia

Inquiries : +1-424-903-8644

Office #216 Regus Tower Bank Street, Doha Qatar

Inquiries : +974-33497259

usa flag appventurez
USA

12501 W Chandler Blvd, Suite 200 Valley Village, CA 91607 USA

Inquiries : +1-424-903-8644

Rimal 5 Jumeirah Beach Residence 2 Dubai

Inquiries : +1-424-903-8644

south africa flag appventurez
South Africa

3 monterrey Complex, 63 Montrose Avenue, Northgate, Johannesburg, 2191

Inquiries : +27 737 810 945

7 Hanover House, Chapel Street, Bradford BD1 5DQ, United Kingdom

Inquiries : +1-424-903-8644

Netherlands flag appventurez
Netherlands

Amstelveen, Netherlands

Inquiries : +31-(0)-61-020-9692

Calle Ambar 2711, Av Victoria, 45089, Zapopan, Jalisco, Mexico

Inquiries : +521 332 393 9998

ghana flag appventurez
Ghana

North Industrial Area, Otublohum Road, Opposite Melcom Plus, Accra, Ghana

Inquiries : +27 737 810 945

appventurez worldwide presence
india flag appventurez
India (HQ)

Logix Infotech Park, 1st Floor, Plot No. D-5, Sector 59, Noida, Uttar Pradesh 201301

Inquiries : +91-9899 650980

5 Taunton Place Craigieburn VIC Australia

Inquiries : +1-424-903-8644

Office #216 Regus Tower Bank Street, Doha Qatar

Inquiries : +974-33497259

usa flag appventurez
USA

12501 W Chandler Blvd, Suite 200 Valley Village, CA 91607 USA

Inquiries : +1-424-903-8644

Rimal 5 Jumeirah Beach Residence 2 Dubai

Inquiries : +1-424-903-8644

south africa flag appventurez
South Africa

3 monterrey Complex, 63 Montrose Avenue, Northgate, Johannesburg, 2191

Inquiries : +27 737 810 945

7 Hanover House, Chapel Street, Bradford BD1 5DQ, United Kingdom

Inquiries : +1-424-903-8644

Netherlands flag appventurez
Netherlands

Amstelveen, Netherlands

Inquiries : +31-(0)-61-020-9692

Calle Ambar 2711, Av Victoria, 45089, Zapopan, Jalisco, Mexico

Inquiries : +521 332 393 9998

ghana flag appventurez
Ghana

North Industrial Area, Otublohum Road, Opposite Melcom Plus, Accra, Ghana

Inquiries : +27 737 810 945

10 Global Offices

Empowering our vision through global exposure.

300+ Worldwide clients

Largest International clients

24 x 7 Availability

Effective support, anytime