Wherewith can you replace blockchain?
Dwain Ross
19 / March / 21
Visitors: 245
Day in and day out, the blockchain technology draws more and more attention. Common attributes that describe the application of blockchain technology are a distributed database, stability and security, transparency and inalterability of verified information. Additionally, we can mention consensus, anonymity of transactions and flexibility.
Blockchain application as a basis for emission is imperfect. Therefore, people are in constant serach for more successful alternatives. A good example is Hashgraph, a consensus mechanism and a possible blockchain alternative. The Hashgraph technology is based on a decentralized platform with no servers and runs the scenario of for creating blockchain:
• Fast: more than 250,000 transactions per second.
• Fair: from a mathematical point of view.
• Safe: new nodes are confirmed consensually.
Application Hashgraph will create possibilities for decentralized applications, in particular:
• micropayments;
• distributed financial markets;
• collaborative applications;
• auctions and many others.
Fairness is a very important attribute, which is not in the description of the blockchain use. A reward in the blockchain, in fact, is a lottery that hypothetically threatens the credibility of the technology:
• The higher the complexity, the fewer chances of calculating the block there are, not only for the solo miner, but even for a small pool.
• Hence, the bigger the pool, the higher the chance of getting a reward for the members.
• Thus, miners not only form large conglomerates but also manipulate the network - as it was with the appearance of the first Bitcoin fork.
• And by concentrating too much power, they are able to threaten the attack with 51%.
Such a situation existed in the past and the pool got disbanded. Now some pool's preponderance is more of a theoretical possibility but only an assumption may make it necessary to reconsider the evaluation of the blockchain. It turns out that this technology is not ideal for emissions.
As an alternative, Hashgraph allows each member to add a block or several blocks at any time without lottery and probability. The Hashgraph consensus depends on the time that most of the needs to verify transactions in the block. Each time a block is added, the receives information. As soon as the majority verifies the block and its contents, the block will be added to the register and, thus, be completed. Therefore, there are no restrictions on the speed of transaction processing. If each participant has enough capacity to load 3,000 transactions per second - this will be the network speed. As a result, it makes the Hashgraph into a less expensive system than the blockchain.
Prospects for businesses based on distributed databases are undoubtedly huge. Despite the fact that the blockchain is not good for issuing money if you consider the fairness and the possibility of51% attack; but in reality the market has not released a better platform, more precisely, more attractive for investors.
The statement about the alternative system is not the only one: the Swirlds platform with similar characteristics was talked about two years ago but has not had much progress. Hashgraph is the product by the co-founder and technical director of Swirlds Inc. One thing is clear - however convenient the platform is to use, it will not be easy to gain capitalization. Especially in a system where there is no complexity and competition; therefore, there are no foreseeable investments and speculative activity. That is, the development will happen because of consumers so the process will be long.
