Blockchain – an open source distributed database, has shown the world its power to change the humanity with its most revolutionary product – Cryptocurrencies. This technology has given efficient solutions to many of the underlying market problems. 

Bitcoin – the first cryptocurrency, gained much attention due to its high speed of transactions and also cheap transaction fees. However by the end of 2017, due to it’s highly fluctuating prices, the network has grown slow and costlier. This resulted in Scalability issues of Blockchain. 

To cater to this issue, a company ‘Swirlds’ tried to build a new system which is faster, cheaper and more efficient than Blockchain. This system is called Hashgraph. 

According to Swirlds, Hashgraph is a new consensus algorithm based on superior distributed-ledger technology which eliminates the requirement for massive computation and unsustainable energy consumption like those of Bitcoin and Ethereum. 

How does Hashgraph work? 

Hashgraph uses two special techniques:

1. Gossip about Gossip

Gossip is a common jargon meaning randomly calling any node and passing the information that you know or sometimes more, to that node. Here, Gossip about Gossip means adding some amount of extra information to the current Gossip(Information), which here are two hashes containing the last two people talked to. Using this information, a Hashgraph can be built and regularly updated when more information is gossiped, on each node.

2. Virtual Voting

Once the Hashgraph is ready, it becomes quite easy to judge what a node would vote, since we know what information each node has and when they knew it. By using this data as an input to the voting algorithm will help us find which transactions have reached consensus quickly.

Pros of using this old voting algorithm are – they have mathematical proofs, makes no assumptions as they are Asynchronous Byzantine fault tolerant, fast due to gossip protocol and fair. 

More detailed explanation of Hashgraph can be found here!

Addressing the scalability issue:

Scalability can be achieved by various methods. It can be transaction speed wise, number of users wise, etc. 

According to Hashgraph’s website, Hashgraph has the following properties of being robust, fair and secure:

1. 250,000+ Transactions Per Second

2. Mathematically-Proven Fairness (via Consensus Time Stamping)

3. Secure: Bank-Grade Security (Asynchronous BFT)

Looking at these aforementioned properties suggests that Hashgraph may indeed be a game changer as Bitcoin is limited to 7 transactions per second while Hashgraph is 50,000 Times Faster which is limited only by bandwidth — 250,000+ Transactions Per Second. This could certainly solve the issues of scalability that most blockchains are facing today.

Conclusion


As per the Hashgraph team’s telegram, Currently, Hashgraph is only deployed in private, permission-based networks and is yet to announce the concrete technical details for its deployment as a public ledger. Hence, it’s difficult to predict with certainty the future of Hashgraph. But we can be sure, if this happens, there will be a new and extended evolution of Blockchain.