Define Hedera? How It Differs From Other Blockchain Technologies?

Since the beginning, blockchain technology has been gaining immense popularity. Also, every blockchain platform is constantly evolving. For instance, professionals consider Bitcoin cryptocurrency blockchain as the original blockchain version 1.0. Meanwhile, Ethereum blockchain is version 2.0, and Hedera Hashgraph might be version 3.0.

Hedera is an alternative to conventional blockchain technology and differs in various ways. Let us learn how.

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Table of contents

• Describing blockchain technology
• What is Hedera?
• How does Hedera differ from other blockchains?
• Copyright and openness
• Efficiency in work and energy consumption
• Determining the consensus
• Conclusion

Describing blockchain technology

Blockchain is one of the most recognized uses of distributed ledger technology. Not only is it decentralized, but it is also unalterable and unbreachable. Additionally, blockchain platforms store the transactional data in blocks accessible by users globally over the network. Blockchain training course are available online, which will give participants an insight into its working.

Since blockchain technology allows verification without intermediaries, the transactions are time-stamped. Moreover, blockchain offers complete privacy, immutability, security, and transparency. As a result, it is exceptionally beneficial in supply chain management, banking, and other sectors. IT professionals seek certification in blockchain as it increases their chances of being hired by various industries.

What is Hedera?

Hedera Hashgraph, or simply Hedera, is a data collection and consensus algorithm. It uses concepts of Gossip about Gossip and Virtual Voting, hence providing safer and faster transactions. While blockchain training courses teach users how to build a DLT, Hedera Hashgraph is one of the methods. Initially, Leemon Baird developed Hashgraph to focus on the needs of the private corporate sector. The Swirlds own the intellectual property behind Hedera. And, the software creating private DLTs is known as Swirlds Hashgraph.

Hedera is a peer-to-peer program, but we cannot consider it a blockchain platform. The nodes present in Hedera share data with random members in the network who have a history of transactions. Likewise, information circulates among all the members. It has numerous other advantages:

• Hedera technology is resistant to DDoS attacks.
• It has disposable distributed ledger technology.
• It offers a speed of up to 100,000 transactions per second.
• The transaction history is immutable.

How does Hedera differ from other blockchains?

Bitcoin and Ethereum blockchains are older blockchains. Thus, they use a Proof-of-Work (PoW) mechanism to validate the next block. In other words, each minor (or node) utilizes computing power to solve complex mathematical equations. Ultimately, they authenticate the transactional data. Developers usually require a certification in blockchain to develop a DTS platform.

Contrarily, newer blockchains use Proof-of-Stake (PoS) mechanism. Besides being energy efficient, they have a high bandwidth usage. In PoS, miners use the blockchain’s native cryptocurrency to approve the transactions. For instance, Hedera (HBAR) is Hedera Hashgraph’s native crypto coin. Developers claim that it outperforms the existing blockchain technologies in efficiency, speed, and security. Further, it utilizes two different algorithms — Gossip about Gossip and Virtual Voting — instead of a chain of blocks.

Following are some other differences between Hedera Hashgraph and other blockchains:

• Copyright and openness

Blockchain is an open-source public ledger. Thus, many people can contribute to run cryptocurrencies and utility tokens. On the other hand, Hedera Hashgraph is a private ledger patented algorithm. Swirlds own the Hashgraph technology, so every new entry has to pass through them.

• Efficiency in work and energy consumption

Conventionally, blockchains use a block-by-block approach, which is difficult for miners to work on. Although blockchain education helps design better algorithms, the current miners have to debate between two blocks and discard one of them, resulting in a wastage of time and effort. Also, blockchain requires high computational power to verify transactions.

Hedera, on the other hand, does not follow the block-by-block approach. Therefore, it is 100% efficient as it does not discard any resources or efforts. Additionally, Hashgraph does not demand a high electrical supply.

• Determining the consensus

Blockchain platforms use various consensus algorithms depending on cryptography and crypto coins. For example, Proof-of-Stake, Proof-of-Elapsed-Time, Practical Byzantine Fault Tolerance, etc.

Contrarily, Hedera Hashgraph uses Virtual Voting to reach a network consensus. It does not require any other algorithm, and hence, it can provide low-cost and high performance.

Conclusion

Certainly, Hedera Hashgraph has the edge over regular blockchain technologies. In addition to being swift in performing transactions, Hedera is energy efficient and secure. Unlike other blockchains, it is not a public ledger and does not use DLT. However, it is relatively newer in the industry and has yet to prove its stability. Therefore, individuals should thoroughly research Hashgraph and take up a blockchain training course before investing in either of them.

Check out BLOCKCHAIN COUNCIL for more updates on Hedera.