Hashgraph Consensus: The Next Generation Of Blockchain Technology?

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Hashgraph Consensus: The Next Generation Of Blockchain Technology?

As it is commonly known in the tech world, the latest innovations get the most attention. In addition, a newer and more effective tech will come along and replace it over time despite how good it is. Blockchain and crypto came along around ten years ago; over that time, better technology to counter blockchain flaws has been developed.

Among these technologies is hashgraph, which stepped in to challenge the long-standing position held by blockchain technology. Today, we are diving deep into what the hashgraph is, how it works and comparing it to the blockchain. Let’s dive in:

What Is Hashgraph Consensus?

Hashgraph consensus is an alternative or the next-generation blockchain consensus mechanism. Instead of relying on the computational power of large digital networks to confirm transactions, transactions are confirmed and recorded through a protocol based on node communication.

A hashgraph is a type of decentralized ledger that’s similar to a blockchain. It stores information and uses cryptography to prevent unauthorized access. Unlike a blockchain, a hashgraph network doesn’t rely on computational power to confirm transactions.

Developers of the Hashgraph Consensus system claim that it can solve various problems associated with building consensus algorithms, such as the lack of efficiency and speed. They cite concepts like gossip about gossip and virtual voting as contributing to its success.

Spreading gossip across the network from one node to another node is a process that allows users to receive messages from each other. However, this process does not have a built-in proof-of-work component, so it does not compete with other networks.

In virtual voting, nodes can vote for their closest neighbour based on proximity. This process is based on the timing among all participants when events happen across the network.

Hashgraph Consensus: The Next Generation Of Blockchain Technology?

How Does Hashgraph Technology Work?

Now that you know what Hashgraph Consensus is, how does it compare to other technology? The main difference is that the hashgraph platform relies on the gossip protocol. To use it, you have to understand how gossip works in real life.

If you have ever been in a situation where a friend has told you about a rumour about someone, then you know how quickly gossip spreads. That is the nature of human communication.

The network’s nodes then record the messages sent by other nodes in the Hashgraph Consensus Network. This process is similar to what happens in a blockchain. In a blockchain, the two main identifiers are the block’s hash number and the previous block’s number.

On the other hand, in the Hashgraph Consensus platform, the four main identifiers are the number of events the network’s nodes created, the last one they received, and the hash number of the sent event.

These characteristics allow the network to easily spread information about its users, just like gossip. Due to its nature, the hashgraph can handle around 250,000 transactions per second. Comparatively, the fastest blockchains can perform transactions of 10,000 per second.

How is Hashgraph Different From Blockchain?

The Hashgraph Consensus is a data structure that records the details of individuals who talked about what they said. It acts as a history of gossip, allowing users to validate transactions much faster than with blockchain technology.

The blockchain adds details about past transactions to new ones, which are then encrypted. A third party carries out this process. The hashgraph confirms transactions much faster because of the gossip protocol.

Many cryptocurrencies, such as Bitcoin, have issues with message timing. With the help of the hashgraph’s asynchronous fault tolerance, messages can still reach their destination even if they get delayed.

The blockchain network chooses the order in which users should complete two transactions if they occur simultaneously. In some blockchains, the fees are prioritized when confirming transactions. In other networks, the number of tokens a particular node has is considered to determine which transaction should be confirmed.

On the other hand, using the hashgraph eliminates the influence a node or group of nodes have on transactions. Since every transaction has a timestamp, the hashgraph ensures that transactions are correctly completed.

Why is Hashgraph a Better  Blockchain Technology?


The hashgraph is an inexpensive alternative to proof-of-work. Instead of buying expensive mining rigs, people and organizations can run hashgraph nodes on cheap hardware. It is 100% efficient and does not waste resources on processing computations.


The Hashgraph Consensus is fast, but its speed depends on the member’s bandwidth. If each member has the necessary data bandwidth to download and upload a set of transactions quickly, the system can handle many of them simultaneously. A fast home internet connection could be fast enough to allow the system to handle all VISA card transactions worldwide.


The hashgraph is 100% efficient when used in the blockchain community. In the blockchain, work is often wasted mining a block that is later considered stale, and the community discards it. In the hashgraph, the equivalent of a block is never stale. In addition, it is also very bandwidth-efficient.

Even if the amount of bandwidth is required to inform all the nodes of a particular transaction, hashgraph only adds a small overhead beyond that absolute minimum. In addition, the voting algorithm of the hashgraph does not require additional messages to be sent for nodes to vote beyond the messages sent by the community when it learned about the transaction.

State Efficiency

Everyone in the community will know where the platform should place an event in history once it occurs. They will also know that everyone else knows about it, meaning they can incorporate the transaction’s effects into their future records.

In a minimal cryptocurrency system, all members would only need to maintain the current balance of their accounts. They’ll no longer have to keep track of the transactions that led to these balances.

Final Thoughts

For projects that require trust between various parties, such as government agencies, financial markets, and enterprise supply chains, a hashgraph is a great choice. Trust is very important in a network, as it will allow everyone to rely on each other’s information. Hence, it is also ideal for trading platforms as it will enable everyone to participate while mitigating the risk of fraud and theft.

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