Hedera Hashgraph claims to be an alternative to blockchain. But it is also a distributed LEDGER technology. It acts as a distributed ledger of transactions. What makes Hedera different from the blockchain is Hashgraph, Its new consensus algorithm. Using the algorithm Hedera can process and finalise far more transactions than a conventional (POW) making Hedera faster and more efficient than the older more outdated networks. Using less energy and offering cheaper transaction costs. On top of that Hedera offers much more security as Hedera is backed and governed by the some of world’s leading organizations including Boeing, Google, the London School of Economics, and IBM, just to name a few.
How does Hedera Hashgraph work?
Now bear with me here because this gets a little over my head so I had to have some of it explained to me so ill do my best to do the same for you Hedera uses the Hashgraph consensus algorithm for the consensus of Hedera mainnet as an alternative to the blockchain consensus algorithm. For each transaction, Hashgraph issues a consensus timestamp. The timestamp is the time when the majority of the network gets the transaction. This consensus is Asynchronous Byzantine Fault Tolerant (ABFT) which means every node participates in every round of consensus. It does not matter if a node is faulty since the algorithm does not rely on a single node for it to work.
The Hedera Governing Council stores and run the consensus nodes on the Hedera public ledger and Hedera plans to make its network permissionless allowing any participant to run a consensus node. When Hedera transitions to a permissionless state, node influence will be determined by HBARs owned. Hashgraph will function as the consensus and security layer of the network.
What Gives Hedera Hashgraph Value?
Hedera Hashgraph is interesting to technology partners and investors as it promises to deliver many of the benefits of blockchain technology while sidestepping technical issues that have kept conventional blockchains from scaling up to handle real-world transaction volumes. The HBAR token takes its value from multiple uses. It is the utility token of the Hedera network. HBAR is also of interest to investors who expect its value to rise as the Hedera Hashgraph network achieves greater market prominence, more users, and more transactions and considering its backers the sky is the limit.
If you want a more in-depth and technical look try the Hedera blog https://hedera.com/blog
