What is Hashgraph?
Hashgraph is a distributed ledger application that creates an asynchronous Byzantine Fault Tolerance (aBFT) consensus algorithm using guided acyclic graphs. The hashgraph technology is currently proprietary, and Hedera Hashgraph is the only allowed ledger. HBAR is the Hedera Hashgraph system’s native cryptocurrency (HBAR).
Hashgraph, unlike blockchains, does not rely on miners to verify transactions. Instead, it creates guided acyclic graphs for time-sequencing transactions without bundling them into blocks using a “gossip about gossip” protocol.
How Does Hashgraph Work?
Hashgraph is a continuation of the blockchain concept or an alternative to blockchain that aims to provide pace, fairness, low cost, and protection constraints. “At the end of each round, each node determines the shared state after processing all transactions that were obtained in that round and before,” according to a Hedera white paper co-authored by Baird, and it “digitally signatures a hash of that shared state, places it in a transaction, and gossips it out to the community.”
The Hashgraph algorithm is used to build Hedera Hashgraph, a decentralized distributed ledger. Hedera Hashgraph is created by a Dallas-based firm of the same name, which earned $100 million in 2018 and has a market value of $6 billion. Leemon Baird and Mance Harmon co-founded the firm.
One of the most widely used types of distributed ledger technology is blockchain. It is the fundamental technology that is used by bitcoin, the first cryptocurrency ever created. Peers connect with one another to create a peer-to-peer network in a blockchain.
Bitcoin makes use of the simplest type of blockchain technology. While mathematically sound, it is inefficient in practice. As a result, we’ve recently seen an increase in the number of various forms of blockchain technology. The most famous is Ethereum, which has a sizable community behind it. Ethereum is a second-generation blockchain that facilitates decentralized apps and smart contracts.
A blockchain, in technical terms, is a set of blocks or documents. The append-only structure is supported. The archive, on the other hand, is timeless, which ensures the data can’t be removed or changed until it’s been published. The data in the preceding blocks cannot be altered in either way.
As a result, blockchain is an optimal approach for current-generation issues requiring data immutability. It has applications in elections, supply chain management, and economics.
What is the History of Hashgraph?
Hashgraph was created in 2016 by Leemon Baird, an American computer scientist and co-founder and CTO of Swirlds, a company that owns patents on the hashgraph algorithm. The hashgraph idea has been compared to blockchain technologies as a more mature version of it.