Hedera: The Hidden Champion of Blockchain Technology

by Arthur · May 8, 2023

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If you are interested in blockchain technology, you may have heard of Bitcoin, Ethereum or Solana. But have you heard of Hedera? Hedera is a public distributed ledger that aims to provide fast, secure and scalable transactions for the decentralized economy. In this blog post, I will introduce you to some of the features and benefits of Hedera, and why it could be a hidden champion in the blockchain space.

What is Hedera?

Hedera is based on a new consensus algorithm called Hashgraph, which was invented by Dr. Leemon Baird, co-founder and chief scientist of Hedera. Hashgraph is a form of asynchronous Byzantine fault tolerance (ABFT), which means it can achieve consensus among a network of nodes without relying on a leader or a fixed set of validators.

Hashgraph uses a technique called gossip about gossip, where nodes randomly share information about the transactions they have seen and the information they have received from other nodes. This creates a data structure called a directed acyclic graph (DAG), where each transaction is represented by an event that has links to its ancestors. By applying a set of mathematical rules to the DAG, nodes can determine the order and validity of transactions with high probability and finality.

How Does Hashgraph Consensus Work?

Hash graph is known for its high throughput and low latency, which makes it more efficient compared to other blockchain platforms. The network has the capacity to process more than 10,000 transactions per second (TPS), with an average latency of 3-5 seconds. In addition, Hashgraph is energy efficient, as it does not require intensive computation or proof-of-work to reach consensus. In fact, the network uses less than 0.001% of the energy used by Bitcoin, making it an attractive option for those concerned about the environmental impact of blockchain technology.

Advantages of Hedera

High throughput and low waiting time makes Hedera suitable for applications that require real-time transactions, such as micropayments, gaming or identity verification.
Energy efficiency reduces the environmental impact of the network.
Unique management model ensures safety and stability.
The Hedera Board of Directors consists of up to 39 recognized organisations from different industries and regions.
The council members are also node operators which runs the network infrastructure and validates transactions.
Council members have equal voting rights and serve for a maximum of two consecutive three-year terms.

Services and functions of Hedera

Hedera Token Service (HTS) allows developers to create and manage custom tokens on Hedera, such as fungible tokens (FTs), non-fungible tokens (NFTs), stablecoins or utility tokens.
HTS leverages the native performance and security of Hedera and supports compliance features such as KYC/AML verification and token freezing.
Hedera Consensus Service (HCS) allows developers to use Hedera as a trust layer for any application that requires multi-party consensus, such as supply chain management, data sharing or voting systems.
HCS enables developers to send messages to the Hedera network and receive a time-stamped and ordered record of them.
Hedera File Service (HFS) allows developers to store and manage files on Hedera, such as documents, images or videos.
HFS supports encryptiondeduplication and access control functions and can be used for applications such as digital certificates, medical records or media streaming.

Conclusion

Hedera is a blockchain platform that offers fast, secure and scalable transactions with its Hashgraph consensus algorithm. Its unique governance model involves recognized organizations from different industries and regions. Hedera has a range of services and features for developers to build innovative applications.