IS HASHGRAPH THE NEXT BIG THING IN CRYPTO ?
There has been a lot of contemplation about the best consensus mechanism that can make blockchain more scalable, efficient, cost effective and fast. In the early days of blockchain, Bitcoin was implemented using the Proof of Work mechanism to operate the bitcoin ecosystem which results in high energy consumption and emission, expensive mining devices and less efficient. After this innovative technology, blockchain enthusiast wants to really improve thereby finding the best way to operate on blockchains using lesser fees, energy, mining device and more scalability.
In 2009, Ethereum technology became wide known through its Proof of Stake (PoS)mechanism built on the blockchain. To know more about proof of stake, you can check my article here . However, this isn’t enough to cater for daily peer to peer transaction because of high gas fees generated. More so, the ethereum blockchain can get easily congested most especially when it gets too busy.
Nevertheless, this innovative developments from Bitcoin and Ethereum has led us to various technology today which includes the sidechains, Consensus, ledgers, DAGS, Rollups, Zero- knowledge and so on. Most importantly, we are interested to know why hashgraphs can change the entire crypto space.
What Is Hashgraph
Hashgraph is a consensus algorithm that can be used in distributed ledger technology in this case (Blockchain). It basically uses the idea of a directed acyclic graph (DAG) to record the history of transactions, rather than a linear chain of blocks as in traditional blockchains. This allows for higher throughput and faster transaction confirmation times, as multiple transactions can be processed simultaneously.
Why Hashgraph Is Unique
This technology requires all transactions to be recorded simultaneously to every participant and nodes, which means they can communicate with each other through every transactions. This means a transaction can’t be manipulated from one person, validators or nodes. This technology implements the complete consensus mechanism, this transaction details will include the timestamp, original identity. By using virtual voting, each participant can determine the consensus order of the transactions based on the information received from others.
The key idea behind Hashgraph
Hashgraph also claims to provide fairness and security by utilizing a voting-based consensus mechanism. Participants in the network vote on the order of transactions and events, and the algorithm guarantees that everyone eventually reaches a consensus on the order of events. This consensus mechanism is also Byzantine fault-tolerant, meaning it can tolerate malicious behavior from a certain percentage of participants.
Why Hashgraph Is The Next Big thing In Crypto
Considering the fact that blockchain is still early and has a lot of room for adoption, this has made some other factors that might affect the blockchain not really obvious. Most recent blockchain most especially Ethereum and Bitcoin has been proving to have a high rise of fees whenever there is a high volume of transactions and users at a time even the through put becomes so low. Hashgraph makes the difference at least for now. For web3 revolution we will need cryptocurrencies that can change the revolution of payments and transactions with speed, cost effectiveness and efficiency. Although, PoS has its own specific implementation that has make it very unique and special but can’t be compare to the potential of hashgraph because of is high throughput and low latency.
Hashgraph hasn’t been really adopted compared to PoS Blockchains but has been proven to worth the attention of entrepreneurs, developers and investors. The need or this technological improvement will be needed in the future which will hasten its adoption than PoS and PoW blockchains.
It is also better to note that the low adoption of hashgraph hasn’t lead to more research and flaw detection, so there might be limitation im this technology and more development will start to hop in.
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