The way that these networks’ transaction speeds have been affected and how high transaction costs have risen to unprecedented levels arguably makes them highly ineffective for the basic purpose and original creation of cryptocurrencies. To transfer money through a decentralized manner with ease and allow micropayments to be shared through a seamless process – essentially performing the same functions of centralized networks, such as Visa.
Bitcoin and Ethereum can complete less than 7 and 12 transactions per second on an average basis, respectively. With these speeds, the networks cannot even come close to the transaction average of Visa, which as of last year stood at around 2000 transactions per second.
Solutions such as Ethereum’s Sharding and Bitcoin’s Lightning Network propose improvements on this front, but even they can only do so much for the networks and cannot actually make 2000 transactions per second a possibility, at least not right away – which leaves a large segment of the cryptocurrency community in low spirits at thinking that they might not ever achieve the original objective of cryptocurrencies with the blockchain.
That is why, when another network claims to resolve these issues while eradicating the scaling problem that these blockchain based networks, it, at the very least, deserves a mention.
Here comes hashgraph, and its hedera hashgraph platform
Created by the founders of Swirlds, a software platform which powers the creation of distributed, serverless applications through its cloud solutions, Hashgraph is a new consensus algorithm that is built with Byzantine Fault Tolerance and which, through its efficient working mechanism, has the ability to perform hundreds of thousands of transactions per second.
The co-founders, Leemon Baird, Swirld’s CTO, and Mance Harmon, the company’s CEO, are very confident of the new algorithm that is nothing like anyone has ever seen before. The invention by Baird – which utilizes a new “gossip protocol” to maintain its prowess – has been so sought after within the company that it just launched a separate platform altogether, to show just how much faith the firm had in the algorithm.
The Hedera Hashgraph Platform is built to make the Hashgraph technology a hero, which according to both of Hedera’s founders, Baird and Harmon, can be considered as an alternative to blockchain due to the technical edge that Hashgraph has over it.
Hashgraph will be taking the gossip protocol one step further and will utilize it as “gossip about gossip”, which would allow the network to complete consensus processes quickly by not only showing what “gossip” or comment is coming to the next node, but the “about gossip” part will also inform them about the origination of such comments.
It was explained that the Hashgraph, staying true to its name, will contain the information of previous “hashes” and will make up a graph of it, so this way, all the information is available to the nodes without any need to and provide proof of work minimizing scaling issues.
Through this technological innovation, both Baird and Harmon aim for the Hedera Hashgraph Platform to be the primary platform for micropayments and day to day transactions by offering extremely low transaction fees as compared to its more popular counterparts in the cryptocurrency industry.
While the company works to establish the Hedera platform, it is also gathering a few key individuals from 39 companies – who remain nameless – to form its governance body that will help grow the platform within the industry.
These 39 companies will provide suggestions and take active part in Hedera’s offerings, with the goal of establishing it gradually but effectively as an authority in its respective niche.