Clear DefinitionsHedera Hashgraph
2 min read
Pronunciation
[heh-der-uh hash-graf]
Analogy
Think of Hedera Hashgraph as a highly efficient collaborative decision-making system where, instead of forming a single line to vote one after another (blockchain), participants have simultaneous conversations in small groups (gossip protocol) and keep track of who talked to whom (virtual voting). This approach captures the full history of communications in a graph structure, allowing everyone to reach the same conclusions about transaction order without needing to directly communicate with all other participants, similar to how consensus naturally emerges in social networks without central coordination.
Definition
A distributed ledger platform that uses the hashgraph consensus algorithm to provide fast, fair, and secure transactions without the energy consumption of proof-of-work blockchains. Hedera Hashgraph is governed by a council of diverse organizations and offers public network services including cryptocurrency, smart contracts, file storage, and consensus as a service.
Key Points Intro
Hedera Hashgraph's architecture is built on four fundamental technological innovations that define its approach to distributed consensus.
Key Points
Hashgraph Algorithm: Directed acyclic graph-based consensus that uses gossip-about-gossip and virtual voting for efficient agreement.
Governance Council: Network governed by a council of up to 39 diverse organizations across multiple industries and geographies.
Services-Based Architecture: Provides cryptocurrency, consensus, smart contracts, and file services through a common framework.
aBFT Security: Achieves asynchronous Byzantine Fault Tolerance, the highest level of security in distributed consensus.
Example
A global supply chain application uses Hedera Hashgraph to track product provenance across multiple partners. When a manufacturer updates a product's status, the information is timestamped and recorded on the network, confirming in seconds with mathematical finality. Each supply chain participant can verify this information through their own node without trusting a central authority. The application uses Hedera's file service to store larger documents like certificates and its token service to handle the transfer of value between partners, all while providing a complete audit trail with guaranteed transaction ordering.
Technical Deep Dive
Hedera Hashgraph implements a directed acyclic graph (DAG) structure where events contain transactions and gossip information about previous events. The consensus algorithm uses "gossip about gossip" where nodes share information about the information they've received, creating a hashgraph data structure that efficiently encodes the gossip history. This enables "virtual voting" where nodes can calculate how others would vote based on the shared gossip history without additional communication rounds. The platform achieves fair transaction ordering through a consensus timestamp mechanism that prevents transaction manipulations like front-running. Hedera's services are implemented as precompiled contracts in the Hedera Service Code, with well-defined APIs accessible through SDKs in multiple programming languages. The network operates on a proof-of-stake model with the native HBAR cryptocurrency used for network fees, staking, and rewards. While initially running on permissioned nodes operated by council members, Hedera has a path to permissionless nodes through its mirror node system and planned network modifications.
Security Warning
When developing applications on Hedera, be aware that while the consensus algorithm provides strong security guarantees, the security of your overall application still depends on proper key management and smart contract implementation. Use the Hedera SDKs rather than custom implementations to ensure cryptographic operations are performed correctly, and carefully review the access control in any smart contracts deployed on the platform.
Caveat
While Hedera offers technical advantages in speed and security, its council-based governance model represents a more centralized approach than many public blockchains, though it does have a roadmap toward greater decentralization. The Hashgraph algorithm was patented technology (though now placed in the public domain), which initially limited independent implementations and academic review. Additionally, the complexity of the consensus algorithm and specialized architecture can create a steeper learning curve for developers compared to more conventional blockchain platforms.
Hedera Hashgraph - Related Articles
No related articles for this term.