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MARKET PULSE 

FEB-2018

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community from reaching a consensus, 
nor can they change the consensus once 
it has been reached. Blockchain merely 
assumes that a consensus was reached as 
probability approaches whereas hashgraph 
guarantees it.

Here is an community message from 
the Hashgraph team that makes further 
necessary distinctions and clarifications: 
“Note that we are our own consensus 
algorithm. While Ethereum is looking 
at PoS with Casper, our algorithm uses 
something called Virtual Voting – it is 
a voting system – without having to do 
the votes. Hashgraph uses a protocol 
called “Gossip about Gossip” to achieve 
consensus. Gossip is a well-known 
computer science term, which can be 
defined as calling any random node and 
telling that node everything you know, 
that it does not know.”

PoW and PoS

One of the most known algorithms of the 
all is Proof of Work (PoW). This algorithm 
is used by one of the strongest crypto-
currency that is Bitcoins. This is one of 
the most commonly used consensuses 
mechanism. PoW does not require every 
node on the network to submit their 
message to reach any consensus. In PoW, 
an individual can provide the conclusions 
to reach consensus. Individual also known 
as miner calculates the hash of his block 
header and checks whether the conclusion 
is correct or not.

And the last one is known as Proof of 
Stake (PoS). Here the mining is done by 
a stakeholder who is selected by network 
based on their stake. Unlike PoW, there is 
no reward for the block miner in the PoS 
system. The miners get the transaction 
fees instead. Crypto-currencies like 
Peercoin, BlackCoin, Nav Coin uses the 
PoS system. 

Hashgraph Projects

Swirlds, the company behind Hashgraph, 
is currently in discussions with many 
enterprises. However, Hashgraph 
is currently being implemented by 
CULedger, a credit union consortium 
supported by the efforts of the Credit 
Union National Association (CUNA) 
and the Mountain West Credit Union 
Association (MWCUA). CULedger is 
building a permissioned, distributed, 
ledger platform for credit unions in North 
America.

This will make it simple for developers 
to build distributed applications that can 
be used by any number of credit unions. 
Hashgraph provides the shared storage 
for these applications, thereby reducing 
the opportunity for errors, improving 
efficiency, and ensuring a consistent view 
of data by all parties.

Future

As a decentralised data structure, 
hashgraph is comparable to blockchain. 
But the similarity ends there. Hashgraph 
is thought to be faster, fairer and more 
secure than blockchain, making it a 
viable alternative which could eventually 
replace blockchain technology altogether. 
Hashgraphs enable a network of users to 
achieve consensus about data in a way that 
is permanent and unalterable. This means 
that transactions can be made in complete 
security.

Unlike the blocks of data that are created 
in blockchain, hashgraphs operate with 
a directed acyclic graph. This provides 
a graph connected by hashes, hence it is 
known as a hashgraph. 

In contrast to the way nodes compete with 
each other to mine blocks in blockchain, 
the consensus mechanism of hashgraphs 
can facilitate hundreds of thousands of 
transactions per second. It also makes 

these transactions fairer. Individuals 
cannot affect the order of transactions, or 
delay the way in which they are processed 
– a serious weakness in the blockchain 
system. In addition, the consensus 
algorithm also eliminates the need for the 
huge amounts of computing energy which 
undermines the value and real world 
applicability of blockchain.

Hashgraphs currently operate as 
private distributed ledgers, unlike most 
blockchains, which are public – meaning 
that anyone can join. The private nature 
of hashgraph networks has enabled them 
to avoid many of the security problems 
which afflict blockchain. If hashgraph ever 
does go public, it will be a real challenge 
to maintain the high levels of security 
and performance that it has achieved in a 
private setting.

End Note

Hashgraph is another great technology 
like blockchain and is surely promising. 
However, while we appreciate this 
technology we should not underestimate 
the original underlying technology, 
blockchain, which has paved the way for 
this new technology. But like blockchain 
has grown in last few years, and many of 
its limitation has been found and resolved, 
hashgraph would also have to go through 
the similar stages of maturity and only 
then, it's true potential would be revealed.

Hashgraph is working to be the solution 
that can fix the internet for future 
generations. In it's current state, the 
internet is fundamentally flawed and is 
not designed to be secure. Hashgraph is 
adding a trust layer on top of the existing 
infrastructure that solves these problems 
and makes completing transactions on the 
Internet far more secure. 

Source: Internet