Since 2008, the spotlight is on the concept of a distributed ledger and hashgraph is the new entrant to the decentralization world. Hashgraph visualizes a fresh and enhanced peer-to-peer computing model that will harness its power to an unprecedented level. As we transit from client-server to a new trust layer for the internet, the hashgraph will solve the impediments to efficiency, scalability, and interoperability. In addition, hashgraph plans to solve the Byzantine General’s Problem using Asynchronous Byzantine Fault Tolerance.
The Hashgraph is currently a private and permissioned network that is being utilized for commercially viable solutions. The prior knowledge of the nodes and identities provides the hashgraph natural protection against Sybil attacks. The consensus mechanisms will account for any maliciousnesses and thus retain the overall throughput.
Hashgraph works on the gossip protocol aka epidemic protocol, which is a process of computer-computer communication. These are based on the way that social networks disseminate information.
Hashgraph follows virtual voting. The node can look at its own hashgraph, examine other nodes, and vote in place of the other node. The nodes are said to be in consensus when two-thirds of the nodes in the network are witnesses.
The throughput generated by Hashgraph is incredibly high. It can achieve 50,000 times faster transactions and can handle 250,000+ transactions per second in one shard. Also, with small latency, Hashgraph takes only seconds for the transactions to be sent out.
Asynchronous Byzantine Fault Tolerant (asynchronous BFT) is the consensus algorithm of hashgraph, which means that the community can decide the execution precedence of two transactions in a network. Mathematical proof for the time exists when consensus is achieved.
Hashgraph provides fair ordering, as well as fair timestamps. The fair ordering of transactions allows priority of order, on the basis of the time of order. In addition, fair timestamps lead to trust for the community as a whole timestamp, rather than a single miner.
The Distributed Ledger Technology(DLTs) of the Hashgraph is highly scalable due to the Java Software Development Kit (SDK) being easier to master than solidity. These allow the Hashgraph to be scalable in transactions or in bandwidth.