Bitcoin and Ethereum may face stiff competition from this technology – Mance Harmon
(Kitco News) – Bitcoin and Ethereum are “extremely inefficient”, and Hedera’s Hashgraph is much more efficient and environmentally friendly, said Mance Harmon, co-founder of Hedera and co-CEO of Swirlds Labs.
“Hedera … uses this algorithm called ‘hash’ which is the most efficient algorithm on the market,” he explained. “When it comes to Ethereum, even Ethereum 2.0, Hedera is 14,000 times more efficient, or uses so much less energy than Ethereum 2.0.”
Harmon spoke with David Lin, anchor and producer at Kitco News, at the Toronto Collision Conference.
Hederas Hashgraph
Hashgraph is a distributed ledger technology that is an alternative to blockchain. Hedera has the patent for this technology, which Hedera claims is faster, less expensive and more energy efficient than blockchains such as Bitcoins and Ethereums. Hashgraph is proof of effort.
“It is impossible to know how much it will cost to spend [Ethereum] network, due to fluctuations in token prices, “said Harmon.
According to Hedera’s website, the average fee for a Bitcoin or Ethereum transaction is $ 22.57 and $ 19.55, respectively. Hedera’s HBAR cryptocurrency, on the other hand, has a transaction fee of $ 0.0001.
“HBAR is used both to secure the network and to enable developers to use the network,” Harmon explained. “When a developer builds an application on top of HBAR, to use our network for their application, they have to buy HBAR outside the open market, through the exchanges. When they make API calls, they pay for those who use HBAR.”
Crypto sales and security
The recent crypto sales have affected HBAR, which is down more than 50 percent so far this year. However, Harmon is not worried about the market fluctuations, and said that HBAR is safe.
“Ultimately, you have to worry about whether a single bad actor, or a group of bad actors working together, can buy up at least a third of the total token supply,” he said. “If they can, then they can affect the network … In our case, we have this management board, these 26 global companies are each running their own node in the network, and there are no anonymous nodes, so we are not susceptible to these types of attacks today. . ”
These 26 companies, which include companies such as Boeing and Google, as well as universities such as UCL and the London School of Economics, operate so-called “Consensus Nodes” on the Hedera network. These nodes store the latest state of the general ledger, receive transactions and work together to determine consensus using a hash graph.
“We have 26 organizations,” Harmon said. “Each of them runs a node on the network. If one of them decides to be malicious, it will not work. It is decentralized trust. You no longer have to trust a single organization. You have to trust a collection of organizations, which is a much better model. ”
To find out the applications of Hedera’s Hashgraph, and Hedera’s future plans, watch the video above.
Follow David Lin on Twitter: @davidlin_TV
Follow Kitco News on Twitter: @KitcoNewsNOW
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of others Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept liability for losses and / or damages arising from the use of this publication.
