Hedera Hashgraph is Fast, Fair, Secure & Stable?
Summary: Hedera Hashgraph has some of the highest reported metrics in regard to performance, fairness, security and stability in all of distributed ledger technology (DLT). In regard to throughput, Hashgraph has one of the fastest transactions speeds, recording over 100K transactions per second. In regard to fairness, Hashgraph has three separate forms in fair access, fair ordering and fair timestamps. These are features not seen in the grand majority of blockchain and other decentralized platforms.
Hedera’s security is without a doubt the best-in-class with formal mathematical proof in the property of asynchronous Byzantine fault tolerance (aBFT). This means that any transaction is fully confirmed and has a mathematical certainty of consensus of 100%. In traditional blockchain multiple confirmations or extra blocks must occur to achieve even 80-90% confidence. With Hashgraph, a transaction is ‘one and done’.
Network stability is a significant factor in the realm of open-source decentralized ledgers that have the potential to split, or fork, at any moment. The team behind Hashgraph strongly believes that network divisions, or forks, are a major barrier to enterprise adoption. Platform stability is vitally necessary for mass adoption of cryptocurrency and Hedera Hashgraph provides the technical and legal controls to earn trust from the enterprises that could globally scale digital assets into mainstream adoption.
Hashgrash Fast: When an hbar token is sent from digital wallet to digital wallet, a single transaction occurs in the Hedera public network that occurs lightning fast, typically in 2-3 seconds.
Although most blockchains and other DLT’s will require elaborate sharding, or database divisions and off-chain mechanisms to achieve scale, Hashgraph can do this in just one shard. Within that one shard, an hbar can be sent 100,000 times a second,, faster than any current functioning mainnet cryptocurrency. The highest any other blockchain can currently perform is near 1,000 TPS, nearly 100 times less than Hashgraph’s speed.
The time it takes for the full platform to see the transaction through the Gossip-about-Gossip protocols and Virtual Voting consensus throughout the entire network is called latency. What makes Hashgraph fast is the incredible efficiency of this process, using proof-of-stake (PoS) and a voting algorithm unlike any other DLT to reduce latency to seconds.
Hashgraph Fair: In blockchain design, a block of transactions are grouped together and published into a long chain that all others in the network agree and add to their chain. This chain length is the security mechanism of data in the network, but has a flaw. The transactions in the block are not timestamped fairly, meaning that they all ‘occurred’ in the network at the same time. What’s more is that the miners building the blocks only give priority to transactions that have paid higher fees, like a bribe. Therefore, in blockchain no single transaction has any timestamp different than the block it was grouped arbitrarily by miners or based on bribing. This fundamental flaw in data archiving design will never permit a blockchain to run a stock exchange, fair auction, online game or any use case that relies on fair ordering.
In Hashgraph, every hbar transaction is accompanied with an exact timestamp that it occurred, as a median time value of the entire network. What that means is that the whole network has to see a valid transaction and then a fair timestamp applied. This reduces geographic bias of those that may reside closer to a network node compared to others that do not. All transactions of hbar are fairly ordered with fair access of anyone, at anytime and are never bundled into blocks with a scrambled timestamp.
Fairness in the Hedera network is therefore in the forms of fair ordering (first person is always first, without a chance to bribe the node), fair access (first-come, first-serve) and fair timestamp (not based on ‘block’ times). These fair aspects of the Hashgraph algorithm will permit myriads of use cases, including fair auctions, fair exchanges, fair games and gambling on a global scale.
Hashgraph Secure: There is no current public DLT network that is capable of asynchronous Byzantine Fault Tolerance (aBFT) except for the secure Hedera platform. The property of aBFT is that every hbar transaction on the network is 100% final when consensus is reached by the majority of nodes in the network. This is a level of bank-grade security that is incredibly important if a substantial amount of financial transactions are to occur in a public DLT.
All other blockchains suffer from the trilemma, which states that in order to increase speed, security has to be reduced through off-chain, or 2nd-layer solutions. Speed, scale and security cannot all be maximized in blockchain, without 1 or 2 being degraded. Only Hashgraph has the first-in-class bank-grade security with aBFT and never sacrifices scale or speed to do it.
Hashgraph Stable: Network stability of a public platform is vital to ensuring confidence that financial investments in cryptocurrency are truly trustworthy. Since the time that blockchains have gained market share and reputation, major forks have destabilized some of the largest projects like bitcoin, ethereum and bitcoin cash.
In the process of network forks, developer communities split as well and brand recognition is confused. Moreover, using the previous or new forked digital currency becomes problematic from a vendor standpoint. It is undoubtable that the 100 or more forks of the bitcoin network has not improved speed or scale, but was used as yet another scheme to take market share and profit in the process.
Hedera Hashgraph will not fork due to the strong technical control of the genesis address book that is required to run the network and cannot be changed. If Hedera is copied, none of the new forked nodes will be able to access the network or use hbars for transactions. Additionally, the Governing Council of Hedera has patent control of the Hashgraph algorithm and can use legal means to prevent a network division. The use of the patent is directly for the purpose of having a strong mechanism to prevent malicious or greedy forking of Hedera. This is a vitally important strength of Hedera and is felt to be one of the most important attributes to gaining enterprise adoption. Megacap corporations will require these kinds of network stabilizing controls in order to build, develop and expand the global scale of hbar cryptocurrency, smart contracts and file storage to the world.