Love the academy, best academy on the planet. I can only recommend it to all persons who want to get involved in Blockchain.
What is your point of view, where do you stand on about the BTC protocol using “Blockchain technology” and Hedra Hashgraph using “Gossip protocol” and a voting algorithm for main adoption?
I have been diving in the academy and just to understand my question, this is the starting point of it:
The creation of the BCT protocol, being the first full consensus distributed ledger technology mankind has ever seen, solves many problems. Now we are experiencing the dream of the creators of the internet protocol, when they embedded the 402 Error Page (transaction not found).
Interestingly the system is mathematically slowed down on porpoises in order to prevent soft forks on the ledger. If the system were instant, it would be forking everywhere, all the time and there would not be no consensus. As more and more computer power is added, the system automatically adjusts the difficulty to solve the math problem, witch requires more power. If BTC is ever going to be wildly used, it would be using a massive amount of the world energy.
One of my concerns is that BTC being a deflationary currency, velocity slows down encouraging people not to spend their BTC because it would be more valuable tomorrow than it is today, so people have a tendency to hord and no to spend, like on the Great Depression.
BTC mining is what encourages someone to leave computers running all over the planet and that’s why BTC works… But after reaching 21 million coins, the only financial incentive for miners is the transaction fee (if velocity (the number of transaction) picks up enough, then the transaction fee is the reason to leave the computer on). But having a deflationary currency that encourages hording and not spending, what is the incentive on leaving the miners on when there’s no more coins to mine?
This economic side of BTC is the weakest point, in my point of view. Because of it’s rate of growth, BTC has been stressed to the limits, where it was once fast and cheap, it is now slow and expensive. The issues BTC has suffered from, have lead to political infighting, BTC forking into multiple versions and alternative crypto currency gaining market shares every day. Distributed ledger technology has coughed fire and there is a speculative mania accruing. Well, the speculation can’t go forever. One thing is for sure, Blockchain is here to stay, or is it?
Now with Hedra Hashgraph, we see a change of blockchain technology to gossip protocol. Instead of a block in a blockchain, Hashgraph calls the package of information “events”.
Your computer takes a transaction like a payment or anything else of that matter, like an action on a video game, an offer to sell merchandise/item or even to sell stocks and bonds, a bid on that item, a contract or even a law, etc., pretty much any information or transaction you want to record and puts in the event. In my point of view, using the gossip protocol, it’s the most efficient way to spread information and it’s exponentially fast.
The other major component is an even older technology (most robust, secure and certain way of coming to absolute consensus) called voting protocol. Till now it was so slow that nobody used it. The twist that Hashgraph has given it, is that there is no voting. Instead, because everyone already knows what everyone else knows (“gossip about gossip”), you can mathematically calculate it with a 100% certainty on how they would vote (virtual voting that allows Hashgraph to get consensus almost instantly). Instead of recording things on a block and then adding it to the blockchain once every 10 minutes, Hashgraph events are added to the system instantly, the moment they are created, so they don’t have 10 minutes worth of information in them. This means that they are small and contain far less data, so they use very little bandwidth and are much easier to transmit. Because it’s not trying to guess the answer to an incredible complex math problem, trillions of times per second, Hashgraph uses just a minuscule amount if power.
From what I have seen so far, compared to blockchain, Hashgraph is lightning fast, more secure and provably fair… All events are time stamped the moment they are woven into the system so the record of whose event came first and who’s came second is instant, and there is no such thing like soft forking or unconfirmed events.
It can also replace huge portions of the internet that are currently run by centralized servers (mining pools), by replacing them with the shared computing power of all of our computers, ipads, phones.
Do you think that Hashgraph might just have the potential of fulfilling all the original hope and dreams for Blockchain technology?
Many Thanks for your point of view.