Why is Blockchain better than Hashgraph? 5 Reasons

There has been a continuous stir in the market ever since the distributed ledger technology surfaced. There has been a considerable change and development in Blockchain, and it is impacting the different business operations. Many people consider Blockchain and distributed ledger technology the same, but the fact of the matter is that Distributed Ledger Technology is a broader term that has Blockchain as a subset. To put it simply, Blockchain is a type of distributed ledger technology that has been paving the way for transformation in business operations. While talking about distributed ledger technology, one should also be aware of the different types of Blockchain technology, and Hashgraph is yet another example of the same.

What is Hashgraph?

Hashgraph, unlike Blockchain, is a consensus method that deals with distributed ledger technology. It is privately held. However, there is a public Hashgraph known with the name of Hedra Hashgraph. The programming language used for Hashgraph is Java and Lisp. The reason Hashgraph gained popularity is that it works comparatively faster than Blockchain. Hashgraph can process 50,000 transactions per second as compared to Blockchain, which can only process 100 to 10,000 transactions per second. This makes Hashgraph more scalable than Blockchain. However, Blockchain is still considered better than Hashgraph; let’s understand why?

Blockchain vs. Hashgraph

1. Approach- Put it simply, Blockchain is a distributed ledger technology that linearly stores information; on the contrary, Hashgraph stored it in an acyclic manner. In either of the cases, the data is stored on the nodes and is distributed, thus making both these technologies completely decentralized.

2. Security- One of the key features that made Blockchain outshine the other technologies is the security of data. Blockchain encrypts data cryptographically. Hashgraph, on the other hand, uses Asynchronous Byzantine Fault Tolerance (aBFT) to secure the network from data theft. Each of the events is recorded, and it is ensured that no data tamper even when the network has some data breach attempt.

3. Consensus algorithm- In the case of Blockchain, there is no limitation to the type of consensus mechanism; for example, there is Proof of Work, Proof of Stake, Proof of Work, Proof of Space and more, but when we come to Hashgraph, then things are different. In this case, virtual voting to gain network consensus.

4. Speed- This we have discussed above, in the case of Blockchain, the speed of transaction is comparatively less than that of Hashgraph. Blockchain processes 100 to 10,000 transactions, but in the case of Hashgraph, the transaction per second is 50,000.

Although Hashgraph has several advantages of Hashgraph over Blockchain technology, the fact of the matter is that Hashgraph has its own set of drawbacks. The primary limitation of Hashgraph is that it has been used in private and permissioned networks, but it needs to be tested in a public network. The effectiveness of this technology will be well-assessed when it is implemented in the non-permissioned network.

Concluding thoughts

Both Hashgraph and Blockchain are fascinating technologies; there are several advantages of both. While Blockchain is an energy-consuming process, Hashgraph is comparatively less energy-consuming, thus making it a resourceful technology. If you are also fascinated by these latest developments, you must enroll for the Blockchain certification with the Blockchain Council, where you will learn more about Blockchain and the things that work in the background. To know more, connect with the Blockchain Council today.