Hashgraph, like Bitcoin, is a distributed ledger. In contrast to the Bitcoin network, which can only handle about 5-7 transactions per second (TPS), the Hashgraph system can handle over 100,000 TPS in a single shard or sub-network.
TPS is virtually unlimited with sharding. Unlike the Bitcoin network, where transaction fulfillment is probabilistic. Your transaction has a better chance of succeeding with each successive block, hashgraph transactions are completed within 3-5 seconds. So, what’s the point? This is something that other networks can accomplish.
Hashgraph is unique in that it can do so with the greatest mathematical level of security possible: asynchronous Byzantine Fault Tolerance, or aBFT. Other networks gain velocity and efficiency by sacrificing security by appointing a decision-making leader. Hashgraph’s network is genuinely leaderless. While it is still a permissioned system (you need the authorization to host a node) with just 13 nodes at the moment. The fact that it is leaderless ensures that the protocol is as decentralized and secure as possible. You also receive a huge bonus if you don’t have a leader making judgments. Moreover, you may add accurate timestamps to operations and achieve fair ordering.
This enables the operation of stock exchanges (did my offer arrive before yours? ), dark pools, any ticketing system, and supply chain management between various manufacturers and suppliers, among other things.
What is the network’s strategy for accomplishing this?
It’s fairly straightforward and summarized as follows: Gossip about rumors with virtual voting. The following explains the issue solved by the Hashgraph consensus algorithm. After a transaction is transmitted to the system, the computers (nodes) on the network vote on whether or not the transaction is authentic.
But how can any node know what the votes of the other nodes are?
Due to the massive quantity of communication necessary, voting algorithms established decades earlier are extremely sophisticated and prohibitive to be used on networks. That is, until Dr. Leemon Baird, Hashgraph’s creator, made an incredible finding. When a transaction broadcasts to the network, if you incorporate relevant data about the previous transaction sent and received (that’s the gossip about gossip), each node can construct a complete image (the Hashgraph) of precisely how information progressed through the network.
Since every node can observe precisely when and how all the data passes over the system, they merely choose the average timestamp for each transaction. Even though received operations at various times by different nodes. That’s how you get a balanced order.
The Hashgraph’s consensus process is 100 percent efficient since it achieves consensus without transmitting any extra information. The Internet’s speed solely limits its speed. Hashgraph, more than any of its competitors, will benefit the most from the 5G rollout.
Is it possible that a new consensus algorithm may render Hashgraph redundant? It’s feasible but improbable, considering that Hashgraph is aBFT, the most robust secure algorithm available, gossip is the fastest way to transmit information on a distributed ledger. Hashgraph’s algorithm needs no extra communication to reach a consensus. There will be continuous advancements, but distributed ledgers have ost certainly hit their hard limits with Hashgraph.
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