Hashgraph vs Holochain
Hashgraph: Hashgraph is a consensus-driven proof-of-stake algorithm that uses 39 term-limited elected Governing Council with a directed acylcic-graph data structure (DAG).
Hedera, the public network built on Hashgraph, can scale to millions of nodes and uses a utility token, the hbar, for network and transaction fees as well as security. Hashgraph offers a cryptocurrency, smart contracts, and distributed secured file storage in a multi-use platform.
Holochain: Holochain is a unique distributed network that uses a Distributed Hash Table (DHT) to host a set of hashes that the community verifies with their local and independently maintained chains. The network does not rely on a global consensus algorithm, but on local chains on users’ computers that reference the DHT for confirmation.
Holochain is not a cryptocurrency as of yet, but will function as a distributed file storage system, built on the same technology as BitTorrent. The HOT coin is a fundraising ERC-20 token built on ethereum. Due to the nature of network design, many features of Holochain are not directly comparable to blockchain or DAGs in the distributed ledger space.
Coin vs Coin
Low Latency (seconds)
Speed of the Internet
100’s of Millions TPS/sharding
3 Phases of Node Topology
Massive Global Scalability
Minimal CPU Requirements
Scalability like BitTorrent
Distributed Hash Table
Global Scale p2p Nodes
CPU Requirements per dapp
Firewall Partition Resistance
Low Collusion Risk of Gov Coun
Firewall Partition Susceptible
p2p Digital Signatures
No Distributed Security
39 Members w/ 2.56% vote/each
Max of 2 elected 3yr terms
No Governance Currently
Network under rebuild
Fairness of Order
Fairness of Access
Fairness of Timestamp
Fairness of Node Entry (Phase 3)
Fairness of the Internet
Proxy Staking Earnings
Virtual Voting Algorithm
Holofuel earned for
CPU & File Storage Hosting
No Global Consensus
Lowest Energy Consensus
Not a Security per Hinman
No ICO or ERC-20 Token raise
Gov Council removes illegal files
Security Token Status Risk
Cannot remove illegal files
Hedera Hashgraph, LLC
Very Experienced Team
Small Developer Group
Growing Social Media
Active Social Media
Few early apps
No Central Authority
39 Nodes Phase 1
1000 Nodes Phase 2
1 Million+ Nodes Phase 3
No Central Authority
Secured File Storage
Social Media Services
Distributed Hash Table
Public Key Infrastructure
Many Applications possible where data security is less important
Formal Coq Proof
FLP Theorem Compliant
Hashgraph Speed: The Hedera Hashgraph public DLT is capable in a single shard of performing at least 100,000 transactions per second in a globally distributed mesh of peer-to-peer nodes. This is the current top speed of any public DLT to date. The throughput is high due to parallel, asynchronous processing and has low latency even at high scale, measured in seconds.
Hashgraph Speed Limit: The speed of the network is only limited by the bandwidth and speed of one’s internet connection. If internet connection speed increases, the speed of hashgraph will also increase in speed proportionally.
Transactions occur asynchronously, meaning that maximal throughput can occur without fixed time intervals or bundled transactions. A global 5G network with low earth orbit satellites could allow anyone in the world to host a node and earn hbar from staking.
Holochain Speed: Holochain is a distributed system of peer-to-peer nodes with no main network. Each node is capable of storing its own unique data structure, but can interact and confirm transactions with others in a shared state without global consensus.
Since Holochain functions without the constraints of consensus, its speed should be relative to the internet and file retrieval rates similar to Torrent File systems. However, the Holochain design compromises security for speed and scale. Without global consensus, a large host of applications are not possible without allowing for many unique security risks, just like Torrent networks and non-consensus databases.
Holochain Speed Limit: Holochain should only be limited by node availability and the bandwidth of the internet. In order for the network to remain active and available, many nodes will be required, however, similar limits to downloading may occur just as in Torrent apps when few hosts or seeds are available for downloading.
Hashgraph Scale: Hashgraph is able to perform at 100,000 TPS in a single shard (database). Hedera the public DLT built on Hashgraph has the ability with multiple shards (database divisions) to expand to 100’s of millions TPS with marginally decreased performance and latency.
Hedera is able through PoS consensus to scale to millions of nodes and allow any one the ability to earn hbar in their wallet with minimal CPU requirements, memory and bandwidth. These features of a public cryptocurrency are fully able to accommodate micropayments and major global enterprise solutions.
Holochain Scale: Holochain has few limits on scalability due to the mesh design of peer-to-peer nodes and the absence of a mainnet or consensus algorithm. The Distributed Hash Table is scalable as well with more nodes providing more liveness, availability and throughput. However, scale in this sense is due to a compromise of security, by only using conventional digital signature cryptography for file storage and not a more robust global consensus.
Hashgraph Security: Using a proof-of-stake model, Hedera Hashgraph has achieved bank-grade, asynchronous Byzantine Fault Tolerance, which has been formally-verified in a Coq proof. Karl Crary, Associate Professor of Computer Science at Carnegie Mellon University verified the aBFT property mathematically in a computer proof. The entire network by extension is also aBFT, maintaining on-graph consensus between shards at scale through the use of state proofs.
This level of security is the highest possible and was not thought possible for a public network since it is 100% final within seconds. Speed and scale are completely preserved without reducing throughput or latency. Hashgraph is immune to the trilemma.
Holochain Security: Holochain uses digital signature cryptographic standards that are already present in conventional database design with central payment processors, but instead use a DHT. The security of Holochain, therefore, is remarkably less than all blockchains and DAG’s due to the absence of any global agreement or consensus.
Security of Holochain is akin to the current state of the internet as it is currently designed with Torrent networks and distributed hash tables. Financial, healthcare and other privacy data sensitive applications will not be well suited for the lowered security profile of the Holochain network. This is based on design by the founders to allow more applications better performance without the restraints of consensus if not really needed.
Hashgraph Stability: Hashgraph is managed by both technical and governance controls in order to prevent the network from being copied or forked (split into to rival networks). By technical control, no node could use the Hashgraph algorithm due to the immutable genesis address book and its reference to the founding network as primary.
Additionally, Hedera is stabilized by a 39-member, term-limited Governing Council comprised of multinational, multisectoral mega-cap corporations that host the Phase 1 nodes. Each member holds a vote with a 2.56% weight per member, serves an elected 3-year term with election allowing only two total terms.
The Hashgraph algorithm of consensus is patent protected, and has an irrevocable license in perpetuity to the Hedera public DLT. This legal control, under execution of the Governing Council is meant to prevent network forks. These controls prevent network splitting, which institutional research has determined as a major barrier in the enterprise adoption of distributed ledger technology. However, Hashgraph is open-review in order to maintain transparency of code, allowing developers and node hosts to ensure that the source code is safe and free of malicious intent.
Stability of the Hedera network is also resistant by several design elements to Sybil attacks (34% attack), Malicious Network Partitions, Round-Robin attacks (DDoS that follows the IP address leader) DDoS attacks, botnet attacks (multiple attacks from a single coordinated attacker through cloud technology). Additionally, the network is immune to mining collusion and hardware arms races due to PoS consensus.
Holochain Stability: Network has been shown in early deployment with a few functional apps to be operational with good performance from its founders. However, Holochain is still undergoing a network rebuild and will require performance testing and use to determine stability.
Torrent networks suffer from availability if a small number of nodes are not live when users wish to transact. Holochain will require a bootstrapping phase where a large distribution of nodes with an incentive in Holofuel will be required to make the network useable early on after rebuild. However, if nodes are low, network stability make be intermittently interrupted or not live.
Hashgraph Fairness: The Hedera public network allows fairness in three separate ways: fairness of access, order and timestamps. Fairness of access is based on the randomization of transaction requests to nodes so that no single node can block a user, without having another node available for it.
Fairness of order means that the Hashgraph algorithm used for consensus, arranges all transactions fairly into the data structure so that no user can bribe any node with additional fees into advancing to an earlier state. Fairness of timestamps means that any transaction sent by a user will be arranged based on its median timestamp of all nodes, in order to fairly assess the global time that an event occurred.
These features of fairness of the Hedera public DLT will be mission-critical for applications in real time trade, auctions, stock exchanges, cryptocurrency exchanges and many more. Censorship-resistance is ensured by design of the Governing Council who are only able to delete illegal material from file storage for regulatory-compliance. The GC are not able to delete users, block wallets, reverse transactions, amend a smart contract or even revoke a user.
Holochain Fairness: Holochain does not have a main net that determines timestamps or order of transactions. Instead, it uses a shared hash table of files that are accessed by all users in the system without the use of a global common record of transactions. In other words, the nodes in Holochain only know what each self has done and have an associated timestamp for each independent transaction.
Without a shared blockchain or hashgraph, there is no ability to determine order and fairness. It would technically be as fair as the internet in its current design in regard to node access and node hosting requirements. The Holochain nodes have to be purchased.
Hashgraph Consensus: Hashgraph uses a proof-of-stake, virtual voting algorithm of consensus that achieves universal agreement on shared data by staking hbar cryptocurrency to nodes. A node processes hbar transactions by signing digital signatures (public keys) after a uses submits a transaction by signing their private key digital signature first.
Hashgraph Efficiency: Hashgraph has one of the lowest energy requirements of any public distributed ledger due to the PoS model, simple hardware necessities, and extremely small amount of work and data load per transaction. A typical hbar transfer uses approximately 140 bytes per transaction with an upper limit of 4 kilobytes for any transaction (i.e./ smart contracts, file storage).
Holochain Consensus: Although, Holochain has been mentioned to have “soft-consensus” by some sources, the nature of Holochain is not to function as a DLT with a true global consensus. Instead, speed and scale are optimized with a loss of security.
A globally-distributed consensus driven network offers a high-degree of security, but is completely absent by intention in Holochain. The underlying philosophy of Holochain is to build a fast and functional network of applications that may not require such a stringent security solution such as blockchain or DAGs.
Hashgraph Regulatory Compliance: The Hashgraph network has technical features that permit users and developers to bind both pseudonymous Hedera accounts to Verified accounts for know-your-customer (KYC) and anti-money laundering (AML) regulations. This is an opt-in feature and can be used by developers depending on pertinent regulatory requirements.
The cryptocurrency utility token of Hedera, the hbar, is not by any community standard similar to a security since it is used to protect the network. It meets the Hinman Token Standard Definition by being sufficiently decentralized and is not at risk for SEC securities fundraising since it used a regulatory-compliant SAFT with accredited investors. No ICO or ERC-20 token fund raise was used in Hashgraph’s founding.
Holochain Regulatory Compliance: The founders of Holochain pursued an ERC-20 token fundraising event on Ethereum in 2018 based in Gibraltar. Investors from USA, China and Sout Korea were restricted from participating. The HOT tokens in the fund raise were a asset-backed token representing the Holoport node hosting services for the network.
Since Holochain used an Initial Coin Offering (ICO), they would have regulatory risk in the USA and other ICO-restricted regions.
Hashgraph Development Team: Inventor of the Hashgraph algorithm and Co-Founder of Hedera, Dr. Leemon Baird is a Professor of Computer Science at the US Air Force, trained at Carnegie Mellon University for his PhD, and has been a senior scientist in several private ventures. He has experience with previous successful new startup companies, holds multiple patents and publications in computer science, machine learning and advanced mathematics.
The CEO is a seasoned entrepreneur in multinational corporations, government agencies and technology startups. He is a former Founder and CEO of two additional prior successful companies acquired by private equity. His most remarkable achievements may be his roles as Program Manager of the US Missile Defense Agency, Course Director for Cybersecurity at the US Air Force and in a private laboratory in Machine Learning.
The team of Hedera Hashgraph, LLC is well-experienced, with master-level education with a proven track record. There remarkable funding in early phases is also a major achievement for the team. Many members have ostensible and visual profiles in LinkedIn and other social media outlets.
Since Hedera has not opened main net access for public development, the developers are difficult to estimate. However, to date over 300 separate dapp projects have been developing on the Hashgraph network.
Holochain Development Team: The two founding members have considerable experience in computer science as programmers, with decades of experience. The Chief Architect or CTO, Arthur Brock has many other experiences and talents apart from distributed computing technology. The team is also transparent with professional LinkedIn profiles and ran a successful ICO raising $20 million USD in 2018. Arthur Brock is also active in social media and writes articles in support of Holochain’s design, implementation and potential.
Hashgraph Decentralization: Hashgraph is a distributed ledger technology with decentralized governance, nodal topology of 39 members (Phase 1) and can scale to millions of nodes. It is censorship-free, has pseudonymous accounts and has no majority-controlling agent. The risk of member collusion relevant to all other cryptocurrencies due to multinational and multisectoral distribution of members is very low.
Hedera Hashgraph, LLC is a network solutions software company formed by the Governing Council members and has an irrevocable license to use the patented Hashgraph algorithm in perpetuity. Due to the proof-of-stake demands of bootstrapping, the Hashgraph Treasury will have the majority of hbars for the voting algorithm. This has low initial distribution and will need clarification of future disbursement after the initial 5 year lockup.
It has been stated that the Treasury will not allow profiting by the Council, but will be used for hackathons, community development, software updates and node support. The Hashgraph Governing Council will only be stewards of the Treasury and will have to act in unison to properly spread hbars in the community to prevent Sybil attacks as the network grows and the hbar earns value.
Holochain Decentralization: Without a consensus mechanism or main net, it is difficult to judge Holochain in contrast to blockchain and DAG architecture. However, the nodal design and topology of the network appear decentralized. The Distributed Hash Table that is used by the network will be as distributed as any Torrent-like platform.
There is no formal governance, but founders and developers seem to form the controlling aspects of the network, including network rebuild (currently underway), node design and token economics. Although the network and nodes may appear fairly decentralized, the influence of founders is large and not offset by governance mechanisms or voting structures by users to limit the influence.
Holochain describes their network structure in terms of an agent-centric approach. Instead of other platforms that use a common shared data set called the blockchain, Holochain is not data-centric. This means that the core of Holochains network does not achieve a universally shared ‘data’ set, but allows all nodes in the network to operate as independent ‘agents’ that managed their own data sets. They use the metaphor of DNA with each computer having its own, unique data code apart from the others.
Hashgraph Use Cases: Due to the multiplatform design with hbar cryptocurrency, smart contract functionality in Solidity, and secured distributed file storage, the Hashgraph network is capable of disrupting all business sectors including public and private industries. Being fundamentally an aBFT-certified network, Hedera Hashgraph will be able to accomodate global megacap commerce through micropayments, financial technology uses in digital asset and stock exchanges as well as public auctions.
Hashgraph is fast, fair and secure and has the highest throughput and best latency for a distributed ledger. This should allow global adoption in fields such as massive multiplayer online games as well as digital assets, allowing real time payments and transfers at the speed of the internet. The use cases are unlimited in fields like medicine and law, where secured and confirmed deletion of files, licensing certificate issuance and revocation with zero knowledge proofs would be invaluable.
Holochain Use Cases: Considering that the Holochain data structure is a shared distributed hash table with standard cryptographic security, cryptocurrency is not a fundamental use case. In order to be a functional cryptocurrency, Holochain would have to have a shared statement of accounts. Instead, each user has their owned self-sufficient file of transactions that cannot be verified by the entire network.
Holochain would have many use cases of shared file systems, just like a Torrent network. However, private data and financial information may not be well suited on Holochain due to the lowered security and consensus compared with blockchain and DAGs.
Dapps could be made that use common files with less sensitive information, however, the benefit in using this network over a competitive Torrent platform may be only marginally improved. Torrent networks are encrypted and have privacy features that may only be improved in security through a global consensus-driven network like blockchain and Hashgraph. However, Holochain is a novel concept and work in progress, creating yet another alternative data structure design for global networks.