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Unveiling the Potential of Hashgraph Technology | ShipFinex

Updated: Nov 7, 2023


What is Hashgraph Technology?


What Technology Does HBAR Use?


Will Hashgraph Replace Blockchain?


What is Better - Blockchain or Hashgraph?




Hashgraph Technology
Hashgraph Technology


Hashgraph technology is a distributed ledger technology that is being touted as a faster and more secure alternative to blockchain. One company that is using this technology is ShipFinex, a platform for global trade finance. In this article, we will explore what hashgraph technology is, what technology HBAR uses, whether hashgraph will replace blockchain, and which is better - blockchain or hashgraph.


What is Hashgraph Technology?


Hashgraph is a consensus algorithm that allows for distributed ledger technology. It was invented by Dr. Leemon Baird in 2016 and is being developed by his company, Hedera Hashgraph. The technology is based on a directed acyclic graph (DAG) that records transactions and is secured using a cryptographic hash function.


The DAG records transactions in a way that allows for high throughput and low latency. This means that the network can process a large number of transactions in a short amount of time. The hash function used by hashgraph technology ensures that the data stored in the DAG is secure and cannot be tampered with.


What Technology Does HBAR Use?


HBAR is the cryptocurrency used by the Hedera Hashgraph network. The technology used by HBAR is hashgraph, which is a consensus algorithm that allows for distributed ledger technology. The network is designed to be fast, secure, and fair. It uses a proof-of-stake consensus algorithm that allows for high throughput and low latency.


The Hedera Hashgraph network is also designed to be energy-efficient. Unlike blockchain, which requires miners to perform complex computations in order to validate transactions, hashgraph does not require any such computations. This means that the network uses far less energy than traditional blockchain networks.


Will Hashgraph Replace Blockchain?


It is unlikely that hashgraph will replace blockchain entirely. While hashgraph has several advantages over blockchain, such as high throughput and low latency, it also has some limitations. For example, hashgraph is a closed system, meaning that it is not open to anyone who wants to participate. This is in contrast to blockchain, which is an open system.


Furthermore, while hashgraph is more energy-efficient than blockchain, it is not completely energy-free. The network still requires some amount of energy to operate.


What is Better - Blockchain or Hashgraph?


The question of whether blockchain or hashgraph is better is a difficult one to answer definitively. Each technology has its own strengths and weaknesses. Blockchain is an open system that allows anyone to participate, while hashgraph is a closed system that is more energy-efficient.


One advantage of hashgraph is that it has higher throughput and lower latency than blockchain. This means that it can process a large number of transactions in a short amount of time. However, blockchain has the advantage of being a more established technology. It has been around for longer and has been more widely adopted than hashgraph.


Ultimately, the choice between blockchain and hashgraph will depend on the specific needs of the application in question. Some applications may benefit from the higher throughput and lower latency of hashgraph, while others may prefer the openness and established track record of blockchain.


In conclusion, hashgraph technology is a promising alternative to blockchain that offers several advantages, including high throughput and low latency. HBAR, the cryptocurrency used by the Hedera Hashgraph network, uses this technology to provide a fast, secure, and energy-efficient platform for global trade finance. While hashgraph is unlikely to replace blockchain entirely, it is a valuable addition to the growing landscape of distributed ledger technology.


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