Getting to know Hedera Hashgraph and Ethereum

Blockchain technology has taken the global industry with a blow, providing a variety of use cases to multiple industries on every scale.

One of the major issues that are associated with blockchain technology is its scalability.

Newer versions of blockchain and multiple techniques are introduced within the ecosystem, which aims to change the dynamics of the global industry with it.

Blockchain, a distributed ledger running under the DLT technology, has come up with multiple use cases, including decentralized applications and other microservices.

Ethereum was the first project to introduce potential use cases in blockchain technology, where it provided the world with the opportunity to instigate smart contracts and dApps.

Ever since its inception, there has been much that has been done for the global community.

The blockchain community has been working on contemporary techniques and putting forth a prospective future for digital supremacy as a whole.

Hedera Hashgraph is another blockchain project that has objectified itself into becoming the future of blockchain.

What makes Hedera different from the conventional DLT technology?

This article shall discuss a short comparison between Hedera Hashgraph and Ethereum, providing the major pointers that make both technologies different.

Understanding the Mechanisms of Hedera Hashgraph and Ethereum in Detail

Ethereum Blockchain has been the inception of blockchain technology.

It presented itself as a decentralized public ledger operating under its cryptocurrency, Ether, and a programming language called Solidity.

Being a first-of-its-kind blockchain technology, Ethereum introduced the world to various concepts, one of which included the verification and recording of transactions that were performed across the blockchain.

The users present across the Ethereum network were provided with the opportunity to create, publish, monetize, and use decentralized applications across the platform.

These applications were referred to as dApps across the network. This open-source blockchain-based platform soon became a haven for creating and sharing business, financial services, and entertaining applications.

The blockchain acts like a tree that is pruned to keep the blocks of the chain from going out of control. It ensures that the ledger is only a constituency of one chain of blocks.

However, looking into the Hedera Hashgraph, a few basic technical differences are present across the blockchain system.

Hedera Hashgraph operates across the hashgraph consensus algorithm. It is a public distributed ledger and governing body designed to support new and existing decentralized applications at a large scale.

The hashgraph consensus algorithm is one of the major differences that has been observed across the Hedera project.

To understand the algorithm in a better way, hashgraph changes the concept of pruning in blockchain and puts forth the concept of ‘weaving’ in the distributed ledger technology.

Hashgraph controls the branches of the blocks by putting them back into the ledger’s body, ensuring that nothing goes out of control across the blockchain.

Ethereum is a basic Proof-of-Work mechanism that selects a single miner for choosing the next block of the blockchain.

Hedera Hashgraph has changed this concept with its hashgraph consensus algorithm. The project believes in the agreement of the community of nodes running across the hashgraph over which they shall be allowed to add a transaction across the ledger.

This collective approach has been countered with the ‘gossip-about-gossip’ and virtual voting mechanism.

Hedera Hashgraph Fundamentals

Hedera Hashgraph Fundamentals

Two important factors are ensured throughout this consensus: the validity and consensus timestamp of every transaction. Once the community of nodes confirms the transaction’s validity within an appropriate time, the state of the ledger is to be updated with finality.

The Ethereum Blockchain technology has a very dynamic sense of consensus across its system. Blocks are settled across a single and longest chain over the agreement of the miner.

However, over creating two blocks, one of them is discarded to cater to the purpose.

In other cases, there is a chance that the blockchain may ‘fork’ into two different chains.

Hedera Hashgraph does not discard any transaction, which makes it more efficient than the other blockchains. All branches tend to exist, which are woven together as a single unit.

Comparison of the Market Cap of Both Blockchains

As stated before, blockchain technologies have dedicated cryptocurrencies. Ethereum operates with Ether (ETH), its dedicated cryptocurrency.

Hedera Hashgraph, on the other hand, is known for its HBAR cryptocurrency. Ethereum has been in the crypto world for quite some time now, which has kept it in second place of the largest market caps in the world. HBAR, on the other hand, is a new concept, which has not achieved the recognition that Ether has achieved in the past.

Ethereum holds a diluted market cap of $542.665 billion compared to HBAR, which has a mere $19 billion market cap. Hedera, however, believes to be a leading project of the future.

How Good have Both Projects Performed in Use Cases?

Ethereum Blockchain has come up with some unique use cases that directed the complete dynamics of the cryptocurrency world.

The use of smart contracts and dApps featured a very prospective use of cryptocurrency to the users. People realized it to be more than just currency, integrating it with all major industries.

Although smart contracts and dApps have been listing numerous use cases worldwide, there are several shortcomings and limitations involved with it.

Where Ethereum Blockchain promises efficiency, it has not been able to achieve that maxim. This is where hashgraph consensus came into being, providing a new idea and understanding to the consumer market over managing industrial-level work.

Being a full-governing utility, the platform has been able to prosper efficiently and provide a very systemized use case to the world.

Developers are actually benefitted from the complete agenda, and the development of the decentralized system is a reality, with the application being fully decentralized.

Many promising applications can be foreseen for Hedera Hashgraph. Although the project is believed to be new in the market, there is still much that is to come for it.

Comparing it with Ethereum, it might not compete properly over market cap and sentiment; however, Hedera Hashgraph does have something to come up with for the world, which shall be recognized sooner or later.

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