The Hedera Hashgraph vs Blockchain Showdown to Know Which is Best Distributed Ledger Technology?

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“Confused by the Hedera Hashgraph and Blockchain terms? Here in this blog, we are going to compare Hedera Hashgraph vs Blockchain to figure out which one is the best among them.”

What’s the first name that comes to mind when we think about the alternative to blockchain technology? It’s possible that you may think of names like Hashgraph, Iota Tangle, R3 Corda, and others.

Among all alternatives to blockchain technology, Hedera Hashgraph is ranked among the top due to its fair, secure, and lightning-fast speed.

Similar to the blockchain, Hedera Hashgraph is actually a distributed ledger technology that aims to offer an efficient, and secure environment over the internet.

But here is the main question, should you believe in Hedera Hashgraph? Or stick with the blockchain technology?

This detailed blog is going to present you with a comparison of Hedera Hashgraph vs Blockchain technology. So you can decide which one makes the ideal selection for you.

Before digging deep into the comparison,  getting some insight into the distributed ledger technology will make your journey smoother.

So, let’s get started.

An Introduction to Distributed Ledger Technology?

Distributed Ledger Technology (DLT) refers to an infrastructure of independent computers more profoundly known as nodes.

All of these nodes are distributed across multiple platforms and connected together to record, share and synchronize transactions in their respective electronic ledgers.

All the information stored on the nodes is encrypted by the cryptographic techniques which make the information immutable (cannot be modified once stored) and put the fear of cyber attacks at rest. The information can be accessed using keys and cryptographic signatures.

The idea of the DLT is to make business data immune from cyber-attacks that occur due to centralized storage of the data.

Both Hedera Hashgraph and blockchain are based on distributed ledger technology.

What is Blockchain Technology?

Blockchain is a distributed ledger technology that refers to the way of storing data that makes it completely impossible to hack or alter the information once it is stored on the blockchain.

As the name suggests, blockchain stores the data in blocks and links all those blocks together using cryptography forming a chain of blocks.

Block is capable of storing any sort of information including audio, video, images, financial transaction records, ebooks, software, and so many others that a business or individuals find valuable.

Furthermore, Blockchain technology is immutable, which means once the data is entered into its distributed ledger, it becomes irreversible.

What is a Hedera Hashgraph?

Hedera Hashgraph is another distributed blockchain technology in which all the nodes communicate with each other by forming a graph-like structure.

Hedera banks upon a fast, reliable, and highly secure Hashgraph consensus algorithm, which helps it to produce similar results to the blockchain while ensuring better energy efficiency, and stability.

Hedera Hashgraph is capable of performing more than 100,000 transactions per second with an average transaction time of 5 seconds by utilizing two algorithms: gossip about gossip and virtual voting.

Gossip about gossip algorithms makes the transaction speed much faster.  To initiate a transaction on the Hashgraph, submit the transaction details to any of the nodes, and then the node will re-transmit the data to another random node, the same goes on until the transaction is completed.

These random nodes are called the neighbors and each transaction detail submitted to them is known as the event. Each event holds the information of the two previous nodes, hence it is called gossip about gossip.

Now, let’s discuss another algorithm of the Hedera Hashgraph called virtual voting.

Since each event holds information about the two previous transactions, the Hashgraph uses this information to vote for the transaction that occurred earlier, thus getting priority treatment.

It is also employed by its own cryptocurrency called HBAR, which can be used as a foundation to develop a variety of products such as p2p payment systems, decentralized apps, and so forth.

Hedera Hashgraph vs Blockchain: Best Use Case

The above data gives you a brief introduction to the blockchain vs Hedera Hashgraph.  Now, let’s compare both of them to find the best use cases for them:

1. Licensing

Blockchain:- Blockchain technology was released under the MIT license. This makes blockchain technology highly permissive, free, and open-source.

Hedera Hashgraph: This is a patented technology that belongs to the Swirld name organization.

In terms of licensing, blockchain offers more freedom than Hedera Hashgraph.”

2. Consensus Algorithm

Blockchain: Blockchain banks upon multiple consensus algorithms including proof-of-work, and proof-of-stake. Proof-of-work (PoW) is mainly used to protect blockchain technology, while proof-of-stake is used to replace miners with validators to prove the authenticity of transactions. In addition to these two, blockchain also uses other consensus protocols such as proof-of-elapsed time, leader-based consensus, economy-based consensus, and so forth.

Hedera Hashgraph: It primarily relies upon two consensus algorithms named; Gossip about Gossip and Virtual Voting. Gossip about Gossip is primarily responsible for transmitting transaction information from one node to another in the arbitrary discipline. Using Virtual Voting, each node participating in the transaction can become acquainted with the data of other nodes, allowing transaction priority to be determined.

The more consensus algorithms mean more energy and time required to complete a transaction. Blockchain is driven by more than two consensus algorithms which means more energy consumption. While Hashgrah follows two algorithms only which makes it highly energy-efficient and lightning-fast than blockchain.”

3. Transaction Per Second

Blockchain: The transaction speed of the blockchain technology is calculated on the behalf of factors such as the protocol used, the purpose of the transaction, etc. However, the average blockchain transaction speed could be somewhere between 100 to 10,000 transactions per second.

Hedera Hashgraph: Powered by the Gossip about Gossip which requires a very less amount of transaction information which in turn speeds up the transaction speed. On average Hedera can accomplish around 500,000 transactions per second.

Hedera Hashgraph takes the lead in terms of the transaction speed.

4. Security

Blockchain: Blockchain ensures security using cryptographic methods. Despite blockchains being tamper-proof, any attempts to alter data blocks will result in the loss of the entire block.

Hedera Hashgraph: Hedera is governed by a security protocol like Asynchronous Byzantine Fault Tolerance (aBFT). It ensures that each event is recorded correctly and transactions cannot be altered in any way. This is why there is no need to worry about losing any data in Hashgraph.

“Asynchronous Byzantine Fault Tolerance (aBFT) protocol makes the Hedera 100% efficient. Blockchain can also be said to be a completely secure technology but any wrong attempt to block data alteration leads to losing the entire block.”

5. Transaction Fee

Blockchain: The average blockchain transaction fee is $1.35 USD per transaction. Prices may vary depending on the level of priority treatment you require.

blockchain transaction fee

Image Credit: Blockchain.com

Hedera Hashgraph: The transaction fee for Hedera starts at $0.0001 USD per transaction, making it price-competitive.

“By offering a low transaction fee, Hedera takes the lead here.”

6. Transaction Confirmation Time

Blockchain: The median time required to complete a blockchain transaction is 5.4 minutes.

blockchain average confirmation time

Image Credit: Blockchain.com

Hedera Hashgraph: The average confirmation time for the Hedera transaction is typically somewhere around 3 to 5 seconds.

“Unlike blockchain, which can take several minutes to complete transactions, Hedera marks the transaction as complete in a matter of seconds.”

Hedera Hashgraph vs Blockchain: Quick Comparison

Comparison Parameter BlockchainHedera Hashgraph
LicenseOpen-sourcePatented
Programming LanguageSolidity, Java, Python, Ruby, etc.LSP and Java
Consensus AlgorithmProof-of-work, Proof-of-stake, Proof-of-elapsed time,Gossip about Gossip and Virtual Voting
Transaction Per Second10,000+500,000+
SecurityCryptographic HashingAsynchronous Byzantine Fault Tolerance
Transaction Fee $1.35 USD per transaction$0.0001 per transaction
Transaction Confirmation Time5.4 minute3-5 second

Final Take: – Should You Believe in Hashgraph? or Stick with Blockchain?

We have come to the end of the Hedra Hashgraphs vs blockchain post and I hope you have developed a deep understanding of both of them.

Blockchain has its strength and weakness, but so does the Hedera Hashgraph as well. The selection of the blockchain vs Hashgraphs is completely subject to your requirements.

From the above comparison, we can see one thing: Hashgraph is the most promising technology and has great capabilities just like the blockchain. It offers a low transaction fee, a faster transaction speed, lesser computing power, and energy. Unfortunately, its popularity is hindered by certain limitations. Still, it needs to be widely tested and its performance examined on the public network.
Blockchain is tested widely and its performance on the public network is the reason for its wide adoption.

If you want to go for a tested solution with minimal risks and solid ground for security then blockchain is your go-to option. If you believe in risk-taking and strong potential for the Hedera Hashgraph, then you can go for Hedera Hashgraph.

Frequently Asked Questions (FAQ)

1. Is Hedera Hashgraph Better than Blockchain?

Yes, Hedera Hashgraph is better than the blockchain, in terms of the consensus algorithm, transaction speed per second, transaction fee, and transaction confirmation time. However, it has not been tested on the public network, which means its performance will be under question.

2. What is the Hedera Hashgraph vs Blockchain per Transaction Energy Consumption?

Blockchain requires approx 885+ kWh energy to carry forward the transactions. On the other hand, Hedera Hashgraph is quite energy-efficient as it requires only  0.00017 kWh.

3. How Many Companies Are Using Hedera Hashgraph?

Boeing, Deutsche Telekom, Google, IBM, LG Electronics, and Tata Communications are a few of the pioneer companies that are making use of the Hedera Hashgraph technology.

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About Author
Suresh Choudhary

Suresh Choudhary

Being indulged in the IT industry for more than 3+ years, I aim to offer up-to-date and latest knowledge on different technologies and trends setting the market. This is what I love to do. When I'm not working, I like to be near the outdoors surrounded by greenery.

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