- Hashgraph consensus mechanism is changing the efficiency of the blockchain network
- Multiple new features are put into work in the new hashgraph consensus.
The consensus mechanism has a huge role to play in most blockchain networks. Using the consensus mechanism, all participating network nodes come together to validate new transactions. Thus, it ensures the network is secure, and all the data is stored in a common trusted source. Although many different consensus mechanisms exist, the Hedera hashgraph is known for using a proof-of-stake network. Hedera’s co-founder and Chief scientist, Dr. Leemon Baird, managed to bring this consensus into existence. Based on the proficiency of the hashgraph consensus algorithm, thousands of transactions can be processed per second. Compared to proof-of-work consensus, where every block is selected by the miner, here in hashgraph consensus, all the activities are carried out collectively.
A Detailed Overview of the Hashgraph Consensus Mechanism
This hashgraph is a data structure algorithm that helps in fast and efficient transactions within the network. Despite many similarities to other consensus algorithm, it is relatively different and unique in how it works. A Directed Acyclic Graph structure has been created to seamlessly operate the hashgraph consensus mechanism across the distributed systems.
Moreover, the Hashgraph consensus algorithm uses a virtual voting and gossip-about-gossip protocol to conduct its operations. It helps establish a secure network without needing a centralised authority. Most importantly, asynchronous Byzantine Fault Tolerant (ABFT) has validated the hashgrapgh consensus algorithm.
All the data containers are incorporated within a ledger of the hashgraph, where none are discarded. This makes them more efficient compared to another consensus algorithm, which keeps discarding transaction containers to make more space. In hashgraph, everything stays forever as they are woven into a single entity.
Use Cases of Hashgraph Consensus Algorithm
With the rise in the usage of applications, assets, and transactions between parties, the Hedera network is becoming a crucial digital infrastructure. If the network’s utility is not, then its actual potential wouldn’t be reached. Therefore, the utility of the hashgraph consensus algorithm plays a huge role in popularising the network. Here are some of those use cases that can provide detailed knowledge regarding this consensus algorithm:
- Payments
The hashgraph consensus algorithm’s efficiency helps enable secure, instant transactions between the networks. Even peer-to-peer transactions are made cost-effective using the hashgraph consensus algorithm.
- Decentralised finance
One of the biggest use cases of the hashgraph consensus algorithm is the establishment of decentralised finance. Using this network’s proficiency, the need for costly intermediaries is removed. Instead, the feature of smart contracts is used for carrying out the transactions in the hashgraph consensus algorithm.
- Privacy
By leveraging the hashgraph consensus mechanism, one’sidentity within the network wouldn’t be revealed to anyone. One can maintain the utmost privacy throughout the servers.
Conclusion
Overall, the hedera network might soon transform into a public and fully permissionless channel. Thus, all the operations that occur in it would be anonymously run using the capability of the hashgraph consensus mechanism. Additionally, maintaining top-notch security will be one of the biggest features that the hashgragh consensus mechanism brings to the table.
