Will Hashgraph replace Blockchain as the choice of technology for Crytocurrency?

The Technology which forms the root of Cryptocurrency is known as Blockchain Technology. This technology however can be on its way out. It is this Blockchain Technology that has made existence of virtual currencies possible and trading of these currencies practicable. However, There is a threat to Blockchain Technology and this comes from the technology named as Hashgraph Technology which is a data structure based on Swirlds Algorithm. This new Concurrence Algorithm is a distributed ledger technology which underlies the Blockchain Technology also. Hashgraph however has peer to peer architecture which eradicates the flaws of the Blockchain. These flaws include Expense, Energy wastage and Latency.

Leemon Baird developed Hashgraph Technology in 2016. Developers believe that this technology offers consensus Time-Stamping while it continues the working process of the Blockchain, This makes it a more dependent and reliable algorithm with the process rate of 2,50,000 transactions per second in comparison to Blockchain which is limited to only 3 to 7 transactions per second.

Block Design

Blockchain as we all know is a data structure which is organised into a series of Interconnected blocks, while as Hashgraph is made up of a chain of events. Quantitatively, A Hashgraph function is what maps data of a random size into a fixed size. If a Hash function can take data of 'n' characters and if it returns the hash value of 256. In order to retreive the data comprised of 'n' characters, processors consult data structure known as Hash Table of that function. As this algorithm is based on randomness, Therefore time taken to decrypt Hash function is relatively longer.

As already mentioned in Hashgraph data is organised into events and each of it contains transactions associated to its timestamp, and also the hash function of the parent events. Blockchain is a sequential data structure but Hashgraph is loosely organised into a network of events which are fabricated by nodes of the network and these communicate the current state of information. Blockchain and Hashgraph both areDistributed Ledger Technologies but they differ in a way that in a blockchain the node which is fastest to solve hash value of a transaction is allowed to add to block & claim the reward in cryptocurrencies used for transaction.

Propagation

The propagation of information in a network in both Blockchain and Hashgraph is common. They are dependent on Gossip Protocol. This means that the node of a network transmits information regardless of transactions to its neighbours that is sending the codes associated with transactions to all the nodes of a network. Then the nodes are in a perfect competition to solve the complex problem first. The Node able to do it first takes the share of currency. This is also known as Proof Of Work and after this the winning node communicates to all the nodes about the win. This makes other nodes to stop processing of hash for the same transaction. The accuracy of the winning node is checked to avoid inclusion of fraud blocks and duplicates.

Let's take an example when Alice receives gossip from Bob about the transaction history, Alice will create an event marked red in the above picture. This contains the hash of the two parent events which are light blue and dark blue. Light blue from Bob and Dark Blue marking its self parent. The order of messages can be acquired by the timestamp. Suppose there are 'n' members where 'n' is greater than 1. The truthfulness of any event can be seen by 2n/3 events of other members.

All the four members which are denoted as orange nodes can be linked to an event which is marked yellow. This shows the concurrence among the members and this improves trust between members. These reasons makes it exponentially faster technology when compared to Blockchain technology.

Advantages

1. Speed
   The nodes of members are connected in a network and the Distributed Ledger is updated simultaneously. Hashgraph is limited by Bandwidth which means if a member has slowest broadband and can download data regarding 6000 transactions, The system facilitates at that speed.

2. Fairness
   As discussed above Hashgraph is based on the concurrence, It is fast and the transactions are dependent on the timestamp in a chronological order. While as Blockchain transactions were developed on the order in which the information was processed by miners and then added to block.

3. Non - Permissioned
   Blockchain and Hashgraph are open source but Blockchain is also open system. Non permissioned system is the system where only trusted members can participate. Hashgraph doesnot waste time for the proof of work by allowing only trusted people in network.

The future currencies which will be based on the Hashgraph Technology will have to register first with Hedera Hashgraph. As the Hashgraph is the more robust form of the Blockchain, It may be welcomed in the worlf of Cryptocurrency by the regulators as it comes under scope of Registered entity.