Hashgraph vs Blockchain
Understanding how Hedera differs from traditional blockchain technology is essential to appreciating its innovative approach to distributed ledger technology.
Blockchain:
Imagine a chain of blocks, where each block contains some information.
Each block in the chain stores data and has a link to the previous block, creating a chronological sequence.
This structure makes it secure because altering a block would require changing all subsequent blocks, which is practically impossible due to the decentralized nature of blockchains.
Examples of blockchain technology include Bitcoin and Ethereum.
Hashgraph:
Picture a group of people in a room having a conversation.
Instead of a chain of blocks, Hashgraph uses a different method where each person shares information with everyone else in the room.
This information sharing happens rapidly and repeatedly, creating a network of interactions.
Hashgraph records the exact order and timing of these interactions, making it very efficient and secure.
It doesn't require 'mining' like blockchain, so it can be faster and consume less energy.
Hashgraph VS Blockchain
Consensus Mechanism
Asynchronous Byzantine Fault Tolerant (aBFT)
Proof of Work (PoW), Proof of Stake (PoS), etc.
Data Structure
Directed acyclic graph (DAG)
Linear chain of blocks (linked list)
Pruning
None
Pruning of old blocks to maintain chain
Efficiency
100% efficient
Efficiency can vary depending on consensus mechanism and implementation
Throughput
Limited only by bandwidth
Varies, typically slower than Hashgraph
Scalability
High
Limited, especially for public blockchains
Transaction Ordering
Fair and deterministic
May be influenced by miners' decisions
Security
Asynchronous BFT, mathematically proven
Depends on consensus mechanism and network size
Energy Consumption
Very low
High (especially for PoW-based blockchains)
Cost
Inexpensive
Can be costly due to energy and hardware requirements
Fairness
Fair access, fair timestamps, fair transaction order
Depends on implementation and incentives for miners
Decentralization
Decentralized, no single point of control
Varies, some blockchains can be centralized due to mining concentration
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