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7/11/23, 4:55 PM Difference Between Hashgraph and Blockchain | Simplilearn

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Difference
Articles Between
Ebooks Hashgraph
Free Practice Tests and Blockchain
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By Simplilearn

Last updated on Feb 27, 2023 1720

Table of Contents

Pros and Cons of Blockchain

What Is Hashgraph? How Does it Work?

Pros and Cons of Hashgraph

Hashgraph vs. Blockchain

Which Is Better?

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Blockchain technology is a revolutionary way of securely storing and exchanging data. It is a

distributed public ledger that is used to record and store all transactions that take place across a
peer-to-peer network. By leveraging the power of cryptography, each transaction is verified and
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7/11/23, 4:55 PM Difference Between Hashgraph and Blockchain | Simplilearn

encodedDevelopment
Software securely, ensuring that it remains immutable and tamper-proof. This creates an immutable
record of transactions that cannot be defrauded or manipulated, making it a highly secure way of
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storing data. Free Practice Tests On-demand Webinars Tutorials

Blockchain technology is a revolutionary way to store and transfer data securely; it is verifiable and
immutable. It is a digital ledger that records transactions between two parties in a permanent,
public, and distributable way. The use of cryptographic hashes creates trust between participants
without the need for third-party verification. This technology has been used to develop new
applications, like cryptocurrencies, that are becoming increasingly popular due to their decentralized
nature and ability to be exchanged for traditional currencies.

Blockchain is a technology that was created to manage transactions in a network. Initially designed
for the cryptocurrency Bitcoin, it can be used for any blockchain transaction. The blockchain is a
shared, public ledger of all transactions across a peer-to-peer network, and it's also called
distributed ledger technology.

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Pros and Cons of Blockchain

Pros

The pros of blockchain are vast and include the following:

By decentralizing data and distributing it across a network of computers, it becomes much more
difficult for hackers to target and breach a system.

One of the benefits of having data distributed on a blockchain is that it becomes much more
Thi b h l f li i i d isi a newer technology,and
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more i h
consensus algorithms. 3/10
7/11/23, 4:55 PM Difference Between Hashgraph and Blockchain | Simplilearn
transparent. This can be helpful in various industries, such as supply chain management, where
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tracing the origins of products is important.

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The data Free Practice
on a blockchain Tests On-demand
is immutable. Webinars once
Thus, transactions Tutorials
recorded on the blockchain
cannot be altered or reversed. This can help to speed up transactions, as there is no need to wait
for third-party approval or verification.

One of the advantages of blockchain technology is that it has the potential to reduce costs by
eliminating the need for intermediaries.

Cons

The cons of blockchain are that it can be challenging to understand.

Blockchain technology is complex and requires a good deal of technical expertise to set up and
maintain.

It is a relatively new technology, and hence has a lot of unknowns. For example, it is not yet clear
how well blockchain will stand up to hacking attempts or other security threats.

Because blockchain is decentralized, there is no one entity that is responsible for maintaining it or
ensuring its safety. This could eventually lead to problems if the network starts to experience any
major issues.

There is the issue of regulatory uncertainty. Blockchain technology challenges the traditional
financial system, and there is no consensus yet on how it should be regulated. This could make it
difficult for blockchain startups to get off the ground, as they may not be able to obtain the
necessary licenses and approvals from regulators.

The current generation of blockchain platforms can handle a specific number of transactions per
second. This could be a scale and cost problem as the use of blockchain technology grows.

What Is Hashgraph? How Does it Work?

Hashgraph is a revolutionary new type of distributed ledger technology (DLT) invented by Leemon
Baird that utilizes a directed acyclic graph (DAG) data structure to deliver a consensus protocol or a
way of reaching an agreement among distributed systems on data validity.

Hashgraph is a new distributed ledger technology that is designed to solve the problem of Byzantine
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7/11/23, 4:55 PM Difference Between Hashgraph and Blockchain | Simplilearn

failures. Development
Software It does this by using a gossip protocol and virtual voting. The gossip protocol in Hashgraph
is similar to how gossip spreads between friends in a social network. The difference here, though, is
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that the information Free
beingPractice
appliedTests On-demand and
are transactions Webinars Tutorials
who they have been sent to (not what they
say). This means no one knows who created the transaction, only which node it has been sent to.
This makes it impossible for anyone to forge transactions or send fake ones as no one knows who
created them or where they have been sent, so there's no way of knowing if you're being lied to or
not when you hear about them second-hand.

Pros and Cons of Hashgraph

Pros

Hashgraph has several advantages over traditional blockchain technology.

It is faster, more secure, and offers improved scalability.

Transaction speed is potentially much faster due to its advanced data structure, as it can process
up to 10,000 transactions per second.

It is also more secure, using a consensus algorithm resistant to attack and manipulation.

Cons

Despite its many advantages over traditional blockchain technology, Hashgraph has a few
drawbacks.

It is more expensive to use, as it requires more resources, such as storage and bandwidth.

Furthermore, it has yet to be widely adopted, so it is not feasible for mainstream applications.
Additionally, its consensus mechanism is less secure than other consensus algorithms, such as
proof of work, as it does not involve the same amount of computational power.

Hashgraph vs. Blockchain

Hashgraph and blockchain are both technologies that provide secure, distributed ledgers for
recording data Hashgraph is a newer technology created in 2016 whereas blockchain the
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7/11/23, 4:55 PM Difference Between Hashgraph and Blockchain | Simplilearn
recording data. Hashgraph is a newer technology created in 2016, whereas blockchain, the
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underlying technology of Bitcoin, was built in 2008. Hashgraph has several advantages over
blockchain, including faster transaction speeds, higher throughputs, and more advanced consensus
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algorithms. Whereas blockchain was initially developed to provide a secure, distributed ledger for
Bitcoin transactions, Hashgraph's consensus algorithm allows it for much more than just
cryptocurrency - it can be used for smart contracts and other distributed applications.

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Which Is Better?

When deciding which technology is better, Hashgraph or blockchain, it comes down to the specific
application used. For example, some applications benefit from faster transaction speeds and higher
throughputs, in which case a Hashgraph would be a better option. However, blockchain might be the
better choice for applications requiring a high degree of security and decentralization. Ultimately,
both technologies are powerful tools for distributed applications, and it's up to the developer to
decide which one is best suited for their needs.

Key Blockchain Implementations

Blockchain technology has gained traction in finance and technology over the past few years. The
underlying technology allows cryptocurrencies such as Bitcoin and Ethereum to exist. Blockchain
technology is mainly used to create a secure, distributed database where information is stored in
blocks linked together with cryptography. This makes it virtually impossible to manipulate data or
records stored on the blockchain.

Blockchain technology has seen rapid adoption in the last few years for a good reason. It provides
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7/11/23, 4:55 PM Difference Between Hashgraph and Blockchain | Simplilearn
oc c a tec o ogy as see ap d adopt o t e ast e yea s o a good easo . t p o des
unparalleled
Software security and transparency, allowing for secure and anonymous transactions. But it can
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also be used for more than simple payments. Key blockchain implementations are being developed
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that can beEbooks Free Practice
used to create Tests ledger,
a distributed On-demand
verifyWebinars
identities, Tutorials
and even automate contracts.

Use Cases and Real-life Examples

Real-world applications of blockchain technology are being developed and implemented in various
industries. For example, the Hashgraph algorithm is being used to build a distributed ledger that can
be used to facilitate secure and anonymous transactions. Additionally, the blockchain is used in
healthcare to store medical records and securely verify patients' identities. The technology is also
being used to automate contracts, allowing for faster and more secure transactions. One of the
most popular uses of blockchain technology is for cryptocurrency payments, like Bitcoin and
Ethereum. But blockchain technology has many other potential use cases as well. For example, a
Hashgraph is used as a distributed consensus algorithm, allowing secure distributed networks in
various industries. Hashgraph is used in the energy industry to secure energy transactions, in
healthcare to store patient data securely, and in banking to create a distributed ledger for financial
transactions.

There are many use cases for blockchain technology and Hashgraph. One of the most popular is in
finance, where it is used to facilitate payments and trades securely. In healthcare, blockchain is
being used to store and manage patient data, providing secure access to only authorized personnel.
In art, blockchain is used to create digital art and verify ownership.

Conclusion

In conclusion, blockchain technology, and Hashgraph are two powerful distributed consensus
algorithms that have the potential to revolutionize many industries. Hashgraph offers improved
security and scalability compared to traditional blockchain technology, while blockchain technology
is more widely accepted and adopted. Both technologies can be used in a variety of use cases and
have the potential to change the way data drastically is securely stored, shared, and exchanged.

Blockchain and Hashgraph technologies have the potential to revolutionize many industries and
sectors. Thanks to their distributed computing capabilities, they can create secure and transparent
networks resistant to fraud and manipulation. This could completely change how we track and
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transfer financial data, store medical records, and view energy transactions. As these technologies
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continue to develop, the possibilities are sure to be endless.
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If you are looking to improve your Blockchain skills further, we recommend you check Simplilearn’s
Professional Certificate Program in Blockchain. This course, in collaboration with IIT Kanpur, can
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