With blockchain expected to enter mainstream adoption, various sectors seem to have started to explore other decentralised technologies. It’s believed that hashgraph, which is referred to as distributed ledger technology similar to blockchain, is one of them. The aim of a hashgraph is to provide blockchain-based advantages excluding any limits. “I believe hashgraph is a distributed consensus algorithm that enables decentralised networks to reach agreement on order and validity of transactions. It’s a data structure and consensus mechanism,” Shrikant Bhalerao, founder and CEO, Seracle, a blockchain cloud company, told FE Blockchain.
Market reports suggest that while blockchain use Proof-of-Work or Proof-of-Stake mechanisms, a hashgraph makes use of a Gossip Protocol, which is a peer-to-peer communication structure for nodes. According to Simplilearn, an online learning platform, blockchains were designed to provide a backing technology for Bitcoin transactions while a hashgraph allows many cryptocurrencies, along with smart contracts and other distributed applications. The platform also mentioned that blockchains ensure increased security and decentralisation in comparison to a hashgraph, which increases the level of transactional speed.
With regard to hashgraph benefits, the technology is considered to have high scalability. As per GitHub Pages, a static site hosting service, a hashgraph’s performance ensures inexpensiveness, 100% efficiency, and can fastly process transactions. In terms of security, a hashgraph is an asynchronous Byzantine Fault Tolerant, which means that a single entity doesn’t have authority over it, and provides every transaction with a consensus timestamp. These timestamps help provide a sequence to the transactions.
“I believe a hashgraph offers high throughput, low transaction fees, and transaction order fairness. These features aim to make it a candidate for real-world applications. Hashgraph’s potential for investors may present investment opportunities,” Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange, stated.
Reportedly, the main hashgraph is Hedera Hashgraph (HBAR). Insights from Hedera Treasury Management Report noted that Hedera network was launched with a total supply of 50 billion HBARs. Messari, a market intelligence company, mentioned that for Q1, 2023, Hedera’s total value locked (TVL) witnessed a 52% increase quarter on quarter (QoQ). In the same quarter, Hedera’s active market capitalisation amplified by 108% QoQ. Revenue from Hedera saw an upward trend worth 489% QoQ to $476,000. By the quarter’s end, the total circulating value of Hedera stood at 30.5 billion HBAR.
As of July 18, 2023 (11.52 am, Indian Standard Time), CoinMarketCap, a crypto price-tracking website, highlighted HBAR’s value to be nearly $0.06, having an approximately two billion dollar worth market capitalisation. Companies which have started to use Hedera network include Deutsche Telekom AG, IBM, Tata Communications
Price predictions for Hedera will be around $0.070 value by 2023 end, as per Changelly, a cryptocurrency exchange. For 2024, Hedera’s maximum price should be close to $0.10, with an average trading price worth $0.087. “Both hashgraph and blockchain technologies aim to achieve consensus in decentralised networks,” Alankar Saxena, co-founder and CEO, Mudrex, a crypto-investing platform, concluded.
Follow us on Twitter, Facebook, LinkedIn