What is hashgraph?
Hashgraph is the same as blockchain, which is a technological innovation. The equation is equally adopting decentralization. However, the difference between the algorithm used and the difference is quite significant. I will try to explain the different algorithms below.
This Proof of Work (PoW) algorithm is an economic measure to prevent denial of service attacks and abuse of services such as spam on the network. This Proof of Work algorithm that solves computationally intensive puzzles to validate transactions and create new blocks. However, this POW or Proof of Work algorithm has its drawbacks, namely performance mining miners which take electricity costs and need time to wait for the propagation time of the blockchain. Even the electricity costs that miners have to pay all over the world are almost the same as the price of a New Zealand country. Not only that, the Proof of Work (PoW) Algorithm has transaction properties that are run in one direction (synchronous). This algorithm is still widely used, call it Ethereum. But Vitalik Buterin (boss ETH) expressed his intention to move to POW. The roadmap and migration plan has begun since the Casper algorithm was introduced.
The Proof of Stake (PoS) algorithm is a type of algorithm used by the cryptocurrency blockchain network to achieve distributed consensus. Unlike the Cryptocurrency Proof of Work algorithm that uses mining, the Proof of Stake (PoS) algorithm is more efficient, because it uses electricity costs from all miners. In addition, with this Proof of Stake algorithm, coin owners have the authority to save the coin themselves and the more coins they have, the greater the reward. This is because the nature of the Proof of Stake (PoS) Algorithm makes the coin held by the system. To get coins, you don’t have to do mining, just use a graphics card, then you have locked the coin. So, you don’t need to invest to buy a computer, but you only have to have coins by saving it. Call it a master node example in coin Dash. Enough to become a master node, which requires you to save a large number of coins, you get the portion of the transaction without mining. But Dash is practically a hybrid Pow and Post (because it still uses the Cryptonight algorithm)
This Voting Algorithm is the focus of Hashgraph where each node of their network has a different code and each code can speak and make decisions to make a transaction, so this algorithm is very decentralized. Unlike the Proof of Work (POW) Algorithm, transactions with the Voting Algorithm are done in many directions, which is also very different from the POW algorithm that uses one direction (synchronize). The voting algorithm also has a weakness, which is consuming very very large bandwidth (because each node is talking to each other). Voting algorithms are good in theory because they are fast, safe, and almost impossible practically. But Hashgraph sees this potential, so they want to make data structure Voting without large bandwidth losses.
How do you do it? The answer is to use Gossip Protocol with this protocol, each node in the hashgraph network takes the code and distributes it randomly on the network. In the end, because everything randomly moves the code will spread across all nodes in the entire network. The code will then record the code who spread it, when, and what is the content of the message. This Gossip Protocol ensures that something is fair and in accordance with the order. This was done by Hashgraph because they felt the Voting Algorithm for POW and POS systems was unfair because miners could change the order of the transaction.
Gossip The protocol claims that they have a power of 250,000 transactions per second, so it’s very fast. Not only that, this technology has even been patented based on SDK requests from the company that owns the patent. However, it is likely that this Gossip Protocol will be made more closed, unlike blockchain and bitcoin, and the application is not open. Hashgraph will only depend on the industry and major cooperatives.