Hedera Hashgraph is a new type of distributed consensus platform that works similar to blockchain – but in a faster and more secure way. The goal of Hedera Hashgraph is to tackle existing shortcomings in the blockchain industry while creating a platform that can scale up to provide lightning fast and secure collaborations and transactions without relying on immense computing power.
Earlier this month, Hedera launched a livestream where they demonstrated the power of their new technology. Specifically, Hedera’s video showed a partnership with Satori. Satori plans to use the Hedera Hashgraph to create the “world’s decentralized AI mesh.” The livestream was viewed by 80,000 people worldwide.
A week after that livestream, news of another partnership hit the internet: cryptocurrency messaging and e-gaming app Mingo announced it would adopt the Hedera Hashgraph for use in its platform.
The overall goal of Hedera’s Hashgraph technology is to revolutionize the distributed ledger technology that made bitcoin’s blockchain famous. Both blockchain and hashgraph technologies are built on distributed ledgers – but they work in different ways. Hedera’s Hashgraph uses a different mathematical approach to achieve consensus between untrusted parties. That approach is called Directed Acyclic Graph, or DAG.
Hedera also incorporates sharding into its hashgraph. This allows for increased scalability – hashgraphs like Hedera Hashgraph can scale up without implementing awkward solutions like the Lightning Network.
The end result of these solutions is that Hedera’s platform can process hundreds of thousands of transactions per second – much greater than blockchain-based PoW systems like bitcoin (capable of processing about 10 transactions per second) and Ethereum (less than 25 transactions per second). That puts Hedera’s platform into VISA and MasterCard territory – both of which have payment platforms capable of processing hundreds of thousands of transactions per second.
Hedera formerly called its hashgraph platform simply “Hashgraph”. Now, however, the company is calling it the Hedera Hashgraph Platform.
Hedera Will Launch Its Own Digital Currency In 2018
Hedera is making headlines for various industry partnerships. The project is clearly picking up steam. Now, the company plans to launch a new virtual currency platform in the second half of this year.
So far, Hedera has raised $18 million in funding from accredited investors, including Digital Currency Group, the well-known cryptocurrency investment firm.
Hederas cryptocurrency will have “seconds of latency like a credit card” to make it a superior payment method to currencies like bitcoin. The currency will also have fees of pennies. Plus, the value of the cryptocurrency will be designed for stability – it won’t fluctuate wildly based on speculation.
Who’s Behind Hedera?
Hedera is a startup company founded by Mance Harmon and Leemon Baird. The pair started working together in 1993 as part of a five-person team building machine learning algorithms for the United States Air Force.
Harmon would later manage a US government software program for missile defense system before founding two cyber security startups, as reported by Forbes. Baird, meanwhile, invented Hedera’s algorithm. The two co-founded a company called Swirlds in 2015. Swirlds was dedicated to building private blockchains for large companies. They then started working on Hedera in late 2017.
Hedera isn’t the only company creating DAG-based consensus systems: IOTA and Byteball also take a similar approach.
Could Hashgraph Replace Blockchain?
There’s a big debate in the blockchain community over whether or not hashgraph will replace blockchain. Some people see hashgraph as blockchain 3.0 – it’s just another expansion of the underlying distributed ledger technology.
Others see hashgraph as a new and disruptive force – and new and improved distributed ledger technology that will make blockchain look as obsolete as telegraph wires.
Ultimately, blockchain is the more proven technology – and that won’t change for several years. Blockchain has been around for over a decade. However, we’ve clearly seen shortcomings with the way blockchain-based networks – particularly bitcoin (BTC) and Ethereum – handle high volumes.
Hashgraph technologies like the Hedera Hashgraph Platform need to prove their concept in the real world. Fortunately for hashgraph supporters, Hedera has already partnered with companies like Satori and Mingo – so real world adoption is just a few steps away. Stay tuned for more information about the Hedera Hashgraph Platform as development continues to move forward.