Hedera Hashgraph is a fully open source public distributed ledger that utilizes the fast, fair, and secure hashgraph consensus. Its network services include Solidity-based smart contracts, as well as native tokenization and consensus services used to build decentralized applications.
Hedera Hashgraph is developed by Dr. Leemon Baird in 2016, who is the Co-founder, CTO and CSO (Chief Science Officer). He holds a Ph.D. in Computer Science and is an author of multiple academic junior publications. Baird is also the Founder and CEO of Swirlds, a joint-stock company designed to build fully-distributed applications that harness the power of the cloud without servers.
The other Co-founder of Hedera Hashgraph is Mance Harmon, who is currently the CEO, covering operations and management.
Both Baird and Harmon have worked together at the Trio Security, and later at BlueWave Security.
What Is Hedera?
Hedera Hashgraph is a public crypto network that serves as a platform where anyone can transact and create decentralized applications. The network enables any organization, whether a start up or multinational organization, to build and deploy scalable decentralized applications (dApps).
Hedera enables scale for dApps by delivering 10,000 tps, finality of transactions in under 5 seconds, fixed low costs of transactions (less than 1 US cent), and low energy consumption. The hashgraph consensus algorithm makes this possible as a leaderless consensus algorithm that prevents network downtime or outage.
What is the project trying to achieve?
Hedera Hashgraph works on the following two protocols:
- Gossip about Gossip
- Virtual Voting
Gossip about Gossip
Gossip about Gossip is one of the popular concepts in networking—gossiping means to spread a piece of information to another person who is not aware of it yet.
Do you know how Gossip reaches from one person to another in real life? For instance, John speaks something to Robert and Robert then conveys the same message to Bob, and Bob says it to someone else and so on.
Gossip about Gossip also works on the same set of rules.
- Every Gossip contains a bit of information attached to the hashes of the last two people to whom you talked.
- Therefore, every node in Hashgraph expands the signed information on new transactions and transactions received from other nodes to your randomly chosen neighbor nodes.
- The randomly selected adjacent nodes combine these newly created events with the piece of information received from the last nodes, and a new event is created.
- The entire cycle goes on repeatedly until all the nodes in Hashgraph get the same information.
Virtual voting is defined as the way a node gets to know whether the transaction is valid or not. If any transaction has 2/3rd of the node as a witness in the network, then it is a valid transaction. No matter if a third node turns Byzantine, the algorithm would still perform its function because Hashgraph is based on Byzantine Fault Tolerant System. The voting takes place over plenty of rounds.
What is unique selling point?
Three unique properties of Hedera Hashgraph are:
- Fair: It uses the uniform time-stamping technique that makes it fairer than all other algorithms.
- Secure: With an asynchronous Byzantine Fault Tolerant System, neither a member can stop the community from reaching a consensus nor change after it has been reached.
- Speed: It can handle more than hundreds of thousands of transactions and verify over a million signatures per second.
Performance. Currently, the tps of most projects are not enough for the mass implementation of the blockchain, as we would see an exponential increase of transactions in case of mass adoption;
Security. If mass adoption of blockchain happens, we would have trillions of US dollars of value on the blockchain and billions of transactions, and if we could expect the value of transactions to increase exponentially too, hence more security measures need to be implemented. Hedera proposes the aBFT (asynchronous Byzantine-Fault Tolerance) consensus, which they believe to be highly secure;
Governance. The ledger should be governed by representatives and professionals from IT, business, legal, and other industries rather than just technology;
Stability. The system should be stable using a combination of technical and legal mechanisms to enforce the decision;
Regulatory compliance. The new blockchain needs to tick all the boxes and comply with all the requirements of the law (including KYC and AML).
Hashgraph technology is the data transfer system based on a decentralised protocol. In blockchain, information is stored in blocks, and each block n depends on the previous block n-1, hence these blocks form a single chain, as the name describes — blockchain. In hashgraph, the participant can also create a transaction, but the information is stored differently when formulating a specific event. Furthermore, there is no need for hashgraph to have a proof-of-work, which makes it less expensive as a system for the participants. This allows it to be faster and more efficient.
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