The scalability of the blockchain is one of the main reasons pointed for the industry for the cryptocurrencies haven’t be mass adopted yet. At that, a new solution presented for the Hedera can put an end on this bottleneck. This is the Hedera Hashgraph, one platform that promises to be able to do 250 thousands transactions per second.
In fact, the speed of the ethereum’s transaction is around of ten transactions per second. So, Bitcoin is even slower that this. Therefore, the new platform multiply by till 25 thousand the capacity to process the transactions. The platform also will have the possibility to create tokens, as ethereum does, for example.
It is important to mention that the technology behind Hedera Hashgraph is not blockchain, as in IOTA – also known as the machine’s cryptocurrency. Instead of the consensus protocol proof of work or proof of stake, most common in cryptocurrencies, Hedera uses a so called system asynchronous byzantine fault tolerance.
So, what’s this system?
Asynchronous byzantine fault tolerance is a protocol of consensus where the entire network votes to decide which transactions will be first processed. That’s possible because the Hedera Hashgraph is a private network. It means that the architecture have an owner – although it is opened to anyone contribute if registered on the platform. Thus, this protocol solve the distributed register issue, that will be not possible in a public blockchain.
Another big advantage of Hashgraph is the so called fairness. It means that each transaction registered on the network is processed in a fair way. The sequence of transactions and timestamps is precise. Therefore, when a transaction is processed in the Hashgraph, it is processed in real time. In the blockchain, for example, the miners can “decide” which transaction will be in the block.
The applications that Hedera Hashgraph pretends to enable is the same of the blockchain, but much more faster. In his whitepaper, the company shows examples of music producers and news producers can selling directly to his own public. It also point to the possibility of virtual worlds creation, elections applications and others infinities possibilities.
And who is behind of this network?
The Hashgrath was developed by Leemon Baird, PhD in Computer Science at Carnegie Mellon University and now CTO of Swirlds Inc. The company build softwares based on the Hashgraph algorithm.
Thus, it appears that the Hashgraph represents a further step to cryptocurrencies and protocols advances in the world. In the current time, disruptive technologies may be outdated fast. Is not possible to say if is the case of Hashgraph and the blockchain, but it seems to be that it’s a step for the mass adoption of this technology.