Blockchain is a revolutionary technology. It could be a game-changer for any enterprise looking to transform itself and its services. Blockchain allows ease of transactions, transparency, and a trusted and reliable exchange platform.
In addition, Blockchain is a part of the distributed ledger technology. Therefore, it has been more desirable for many businesses. But since technology keeps evolving with every passing day, the current Blockchain is not the end of the solutions for businesses.
Blockchain technology has helped individuals create innovative platforms. These platforms can be used for trading cryptocurrencies and exchanging coins. For instance, you can convert HBAR to BTC on such platforms or vice versa. But a new DLT viz. Hashgraph seems to gain a lot of popularity recently. Keep on reading to know what Hashgraph is and why some people prefer it over blockchain.
Challenges of Blockchain
Blockchain is one of the first Distributed ledger technologies. It has been continually evolving over the past few years. Since the ‘.com’ boom, it has been one of the most innovative technologies. It has transformed many sectors like finance, banking, gaming, etc.
However, the problem with Blockchain as a 1st gen DLT is its speed. It is very slow in processing transactions. This makes it very difficult for most Blockchain projects to scale. One of the prime examples is Bitcoin and Ethereum.
What is Hashgraph?
Hashgraph is a new Distributed Ledger Technology created by Dr. Leemon Baird. Swirlds Corporation owns the license for the same. Hashgraph is a new kind of DLT. It provides distribution, security, and decentralization by using hashing. This implies that one does not need to face speed problems with this technology, unlike Blockchain. Hashgraph can process thousands of transactions per second. Many cryptocurrencies use Hashgraph today due to the ease and benefit of usage.
But the only challenge with using Hashgraph is it provides the benefit of speed since it is private. But for public usage, there is a different use case for Hashgraph, which is the Hedera Hashgraph.
Benefits of using Hedera Hashgraph
The advantages that make hedera Hashgraph a preferred choice for many enterprises are listed below-
- HBAR – This is the cryptocurrency of Hedera Hashgraph, which provides users very low fees, and customizable transaction options on Hedera.
- Smart contracts – These contracts use logic for execution and help build DeFi apps that can be used for numerous purposes.
- File Service – The software allows users to micromanage file storage like deletion and append.
- Consensus Service – The software provides secure, fair and fast consensus for any software.
With these benefits, Hedera is one of the most secure spaces for conducting transactions since it uses aBFT that is asynchronous byzantine fault tolerance, abolishing the idea of malice on the platform. In addition to the fast speed it also promises a solution for scalability issues for many cryptocurrencies.
Many upgrades are planned for Hedera in the future that can make it adaptable on a larger scale. Moreover, many of upgrades have already been rolled since late 2021 including reduced time for maintenance. They have also introduced scheduled transactions, sharding enabling, multi-party transactions, and much more.
In fact many exchange platforms like https://alligat0r.com/ are all set to incorporate such technologies since it will substantially reduce the transaction time and cost. It will consequently provide a competitive edge to crypto exchange platforms.