Hashgraph Vs Blockchain: The Ultimate Trade-off
More and more people are deviating their interest in the recently introduced 'Hashgraph' which is suspected to make the Blockchain obsolete. Here, we are going to talk about the trade-offs between them. If you're not sure of what Hashgraph is, you can follow our previous article What is Hashgraph?.
There are multiple ways in which Hashgraph claims to be superior to Blockchain. But still there lie many challenges in the successful implementation of Hashgraph.
Let's look at some of the broader ways that depict the difference between the Blockchain and the Hashgraph:
1. Scalability (How fast?)
The Scalability problem of Blockchain refers to the limit on the number of transactions that the particular Blockchain can process based on the frequency and size of its blocks.
As per the Hashgraph's website, Hashgraph can perform more than 2,50,000 transactions per second whereas Bitcoin or Ethereum Blockchains perform 7 to 10 transactions per second. Due to its enormous transaction rate, Hashgraph might effectively solve the issue of scalability that is faced by many blockchains today.
2. Type of Network
Hashgraph is currently deployed only on private blockchains as it's a Private Distributed Ledger. Whereas, Blockchain is a public network.
Private networks work much differently to Public networks. Unlike private networks, a single change in the public network will affect the throughput of the entire public network.
It's important to understand that a private network claiming to achieve higher transaction rate in the testnet does not necessarily achieve the same when deployed as a public network.
3. Time-stamping (How fair?)
In Blockchain, the power of choosing the order of the transactions that occur in the block resides in the hands of the Miner. It means that the miner can decide which transaction will enter first and which one will be entering late. Whereas, Hashgraph works on the Consensus time stamping methodology which won't allow any modification to the order of transaction by any individual. Hence, Hashgraph can be considered fairer in operation.
4. Security (Asynchronous BFT?)
Hashgraph is completely Asynchronous Byzantine Fault Tolerant which means it does not make any assumptions about the consensus. Whereas in Blockchain, there is no way to know if the consensus has been achieved as with the new conflict between the two simultaneous block creations, there comes the need of validation of transactions resulting in more time consumption. Hence, due to no modification or stoppage on the successful reach of the PoW in the Hashgraph, it is irrepressible against DDoS attacks or firewalls making it more secure.
5. Cost Effectiveness (How expensive is the hardware?)
Unlike Blockchain, Hashgraph is not based on the PoW mechanism that requires continuous complex calculations, energy and heavy hardware for mining which are highly expensive and so Hashgraph as compared to Blockchain in quite inexpensive.
6. Efficiency (Is there a wastage of any kind?)
In Blockchain, when two miners create two blocks at the same time, only one block is accepted to be added to the existing blockchain based on the hash calculations and utilizing the energy resources, and the other block which is not accepted, is discarded resulting in the wastage of all the efforts put after that discarded block.
Whereas in Hashgraph, none of the blocks are discarded. Each and every individual can create and add their blocks in the chain without the need for any heavy resources.
Blockchain, as mentioned previously, is a public network. It is an open-source distributed database. Hence, any individual can develop and evolve anything using Blockchain.
Whereas, Hashgraph is privately owned. It has a patent and so is not an Open Source technology which means that the entire operation of Hashgraph will be controlled by the owner which might not gain the trust of the mass.
A majority of the above points suggest that Hashgraph is superior to Blockchain. But it's still yet to hit the ground and we cannot forget that technology constantly evolves but it has the base on which it keeps evolving, which in this case, is Blockchain. The blockchain is still not fully and widely explored by the world today and the Hashgraph is already introduced.
Hence, making a conclusion of who is winning the war will be quite early at this stage as Hashgraph's public deployment is still to be seen. Like you, am equally curious about the emerging future. So, presently can just say: May the superior be the force!