Open In App

Difference Between Blockchain and Hashgraph

Last Updated : 16 Aug, 2022
Like Article

Blockchain and Hashgraph are similar technologies that are used to store transactional data. Both are distributed ledger technologies. The article focuses on discussing the difference between Blockchain and Hashgraph.

What is Blockchain?

A blockchain is a shared distributed database that stores information in blocks. Blocks are linked with other blocks forming a chain known as a blockchain.

Pros of blockchain:

  1. High Level of Integrity: once the data is being created, this data cannot be altered/modified by anyone
  2. Full control of information: In a traditional centralized system, the user doesn’t have control over their own personal information which results in misusing of users’ personal by higher officials or companies for their benefit. However, blockchain’s higher level of security and transparency gives full control to users over his/ her information.
  3. Faster Transactions: Traditional centralized banks takes a lot of time to process a transaction overseas. So,  many consumers can’t rely on traditional banks’ slow-paced systems. However, in blockchain, we can process a Transactions in few seconds 

Cons of blockchain:

  1. Verification Process: It uses a verification algorithm like ECDSA (Elliptic Curve Digital Signature Algorithm)to ensure that transaction between two correct nodes. This can be tricky and a complex process as every node needs to verify the user’s identity.
  2. Large Energy Consumption: it requires a lot of electrical energy to perform complex computational problems during the time of transaction and even during the time of mining.
  3. High volatile: The main product of blockchain is a cryptocurrency, which is highly volatile as its prices dip every second, as a result of which cryptocurrency are not fully accepted around the world, as a global currency.

What is Hashgraph?

Hashgraph is an alternative to blockchains that claims to overcome the gaps left by blockchain, it uses concepts like gossip about gossip and virtual voting to achieve faster and more secure transactions.

Pros of hashgraph:

  1. Security: Hedera Hashgraph claims to achieve the highest level of security through a system called aBFT (asynchronous byzantine fault tolerance)
  2. Fast Transaction: It can process up to 500,000 transactions per second, as a result, it is much faster than blockchains like Bitcoin and Ethereum and it processes a transaction with 100% certainty.
  3. Low Transaction fee: Its transaction fee is under 1 cent, as compared to  Bitcoin whose transaction fee  is between $10 –  $30 as of 2021 and it can take up to 10 minutes to complete a transaction

Cons of hashgraph:

  1. Open source: Unlike blockchain, hashgraph is a patented technology owned by Swirlds, as a result of which developers can’t contribute to it without the company’s permission. The main reason for blockchains’ popularity is the developer’s community involved, trying to experiment with better solutions.
  2. Uncertainty: though it claims to be better and faster than other blockchains, it is still uncertain  whether it can be used to tackle the massive load, which has, severely damaged networks like Ethereum

Blockchain vs Hashgraph

Below are some of the differences between Blockchain and Hashgraph:




Mining Blockchain uses mining. Hashgraph doesn’t use mining.
Integrity It is easier to copy/fake transactions using multiple identities. It uses digital signatures to verify transactions, so they cannot be copied or faked by any person or computer.
Scalability  It is limited in terms of scalability and transactions per second.  High scalability and high transactions per second.
Introduced  Introduced through bitcoin in 2008. Introduced in 2007.
Programming language Different programming language is used. The programming language includes LISP and Java.
Platform It is an open-source DLT platform. it is a patented algorithm owned by Swirlds.
Transactions per second  It can process 100 to 10,000 transactions per second.  It can process up to 500,000 transactions per second.
 Algorithms Blockchain uses various consensus algorithms such as proof of work (PoW), proof of stake (PoS), Proof of Capacity (PoC), etc. Hashgraph uses virtual voting to gain network consensus.
Security mechanism A third party is needed to validate the transactions between parties. Hashgraph uses gossip about gossip protocols to validate transactions.
Applications Applications are Bitcoin, Ethereum, Hyperledger Blockchain Projects, and EOS. The application is Swirlds.
Fair It is Moderately‌ ‌fair‌. 100% fair.
Efficient Less‌ ‌efficient‌ ‌than‌ ‌Hashgraph‌. 100%‌ ‌efficient‌ .
Power consumption                             While mining, it requires a high electrical supply and involves heavy computer calculations to verify transactions. It does not need high computational power and high electrical supply.
Control over data Miners have the power to cancel a transaction or postpone a transaction. Validation of transactions is as per consensus.
Went public  It went public in 2008. It went public on August 24, 2018.

Previous Article
Next Article

Similar Reads

Difference between Blockchain and a Database
Database: Generally a database is a data structure which is used for storing information. It is a organised collection or storage of data which is able to store a new data or access a existing data. The data stored in a database can be organized using a database management system. The database administrator can modify the data stored in the databas
2 min read
Difference Between Bitcoin and Blockchain
Blockchain In Blockchain every block contains a cryptographic hash of the previous block, a timestamp, and transaction information. In other words, blockchain is a distributed database technology, which restricts bitcoin. In fact, any digital asset. It enables multiple parties to transact, share valuable data, and pool their resources in a secure y
4 min read
Difference between Public and Private blockchain
1. What is Public Blockchain ? Public blockchains are open networks that allow anyone to participate in the network i.e. public blockchain is permissionless. In this type of blockchain anyone can join the network and read, write, or participate within the blockchain. A public blockchain is decentralized and does not have a single entity which contr
5 min read
Difference between Proof of Work (PoW) and Proof of Stake (PoS) in blockchain
1. What is Proof of Work (PoW) ? The term “proof of work” was coined by Markus Jakobsson and Ari Juels during a document published in 1999.It is related to bitcoin. Proof of Work (PoW) may be a protocol designed to form digital transactions secure without having to believe a 3rd party. This work builds on previous puzzle solutions. PoW may be a way
4 min read
Difference Between DAG and Blockchain
Blockchain is a digital, decentralized public ledger that records every data transaction on the network, and has great potential to build the future Internet system. It begins to shape the world of transactions in a new way, with the ability of tracking orders, payments, and more on the network. Now that we all know how much information plays an im
5 min read
Difference between Various Blockchain Protocols
The blockchain protocol is a set of rules and standards that define the structure and operations of the network on the principles of decentralization, immutability, and peer-to-peer communication. Why Does Blockchain Require a Protocol?It plays a vital role because it describes how nodes in the network communicate, achieve consensus, and validate t
4 min read
Flutter and Blockchain - Hello World Dapp
[caption width="800"]Flutter and Blockchain[/caption] This tutorial will take you through the process of building your first mobile dapp - Hello World Dapp! This tutorial is meant for those with a basic knowledge of Ethereum and smart contracts, who have some knowledge of the Flutter framework but are new to mobile dapps. In this tutorial we will b
9 min read
Integration of Artificial Intelligence and BlockChain
Artificial Intelligence and Blockchain are proving to be quite a powerful combination, improving virtually every industry in which they're implemented. These technologies can be combined to upgrade everything from food supply chain logistics and healthcare record sharing to media royalties and financial security. The integration of AI and Blockchai
8 min read
Blockchain and Data Privacy
Blockchain has been defined as a digital, decentralized ledger that keeps a record of all transactions that take place across a peer-to-peer network. It enables the secure transfer of assets without an intermediary. It also provides a record of transactions that is fully transparent and displayed in real-time for benefit of participants. Blockchain
11 min read
Basics of the Blockchain and its various applications
The BlockChain, to begin with is undeniably one of the most ingenious inventions of mankind. Considering it to be the brainchild the pseudonym, Satoshi Nakamoto, the technology has evolved into something unimaginably great. However, the most commonly asked always arises every single time - What is this Blockchain? A BlockChain is defined as a peer
5 min read