Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $2,17 trillion. Bitcoin continues to trade at around $62,300. Ethereum experiences no changes and stagnates at around $2,400. XRP is down by 2%, Solana by 1%, and Dogecoin by 3%. Almost all altcoins are trading in the red, with very few exceptions. The DeFi sector decreased the total value of protocols (TVL) to around…
Beginner’s Guide to HashGraph – The Competitor to Blockchain
1.7 k views
The advent of a decentralized, distributed, and self-fulfilling platform, i.e., blockchain, has revolutionized how we exchange value and information with each other for good. In many ways, blockchain will help us move away from the world with central regulatory bodies needed for brokering trust and towards a decentralized trust-less ecosystem. A world where technology shoulders the responsibility of federating trust.
The belief is that Satoshi Nakamoto, the anonymous inventor(s) of Bitcoin and Blockchain technology, wouldn’t have imagined that their novel invention would go on to break traditions and institutions in the way it has done today. Blockchain technology came to a renewed interest in the idea of a utopian decentralized world where everyone works for everyone, and no single authority is given a chance to take advantage.
With Pros Come Cons
But then, as we always say, not everything is perfect. Sure, blockchain might end up changing the way we transact value and information for good. But with the innovation in decentralized technologies came problems that were unique to it and it alone. Blockchain is a disruptive technology but has its fair share of issues. For example, the proof-of-work algorithms needed to validate transactions are slow and resource-intensive. A few transactions per second is snail-paced compared to the millions of transactions we do over the internet.
Since 2010, innovators have been trying to build upon the Bitcoin blockchain by identifying its flaws and trying to solve them by building clever and innovative infrastructures. No matter how much one tries to improve on a blockchain project by bringing in another blockchain project, problems inherent to blockchain technology cannot be changed. Many realized that there would be an imminent update to blockchain technology that would borrow its basic principles and innovate in its way.
Introducing Hedera HashGraph – The Blockchain 2.0
As per Wikipedia, “HashGraph is a distributed ledger technology developed by Leemon Baird, the co-founder and CTO of Swirlds, in 2016. They consider an asynchronous Byzantine Fault Tolerance (aBFT) consensus algorithm capable of securing the platform against attacks. It does not use miners to validate transactions and uses directed acyclic graphs for time-sequencing transactions without bundling them into blocks.”
HashGraph is a DLT platform that employs the Gossip protocol for consensus building. It was made to provide a fast, fair, and secure infrastructure to initially run Decentralized applications (dApps) but can increase its scope in the future.
HashGraph works on a gossip-based protocol, which is fundamentally not new. In a gossip-based system, nodes communicate and tell each additional information they know. For instance, displaying the current state of the network, communicating nodes trusted by a node, and so on. Upon receiving this gossip, these nodes will gossip this information to other nodes, forming a network where every node eventually knows about every other node.
The innovative idea that distinguishes HashGraph from traditional gossip systems is that rather than just gossiping arbitrary data, nodes gossip about gossip, i.e., the data structure in the image on the left is stored in memory and sent to others. So, intuitively, if you imagine each node in the diagram representing a new transaction being added to the graph, then rather than just sending that node, they will send a whole tree of nodes starting from the new one when the host gossip.
Delving Deeper into the Properties of HashGraph
To achieve consensus, HashGraph uses two techniques – Gossip about gossip and Virtual voting.
Gossip about gossip means sharing information about the information being spread. This is achieved by adding a tiny amount of additional information and a couple of hashes about the people spreading the gossip (the parent nodes). This helps in creating a historical graph of information being disseminated.
The information transmitted from a node is disseminated as gossip through a random selection of peers to share what you know. The idea is to share the information with as many participants as possible if not all. Interestingly, epidemics spread similarly (boy oh, boy!). It has been mathematically proven that gossiping is the fastest way of spreading news, and HashGraph builds on it.
Virtual voting builds a consensus on the gossip’s ordering and timestamp (the transactions). In simple words, the participants take turns voting on what they know and when they came to know about it. It’s virtual, as each participant simulates the voting using an algorithm to arrive at a consensus on ordering and timestamps. An actual vote is unnecessary, as all participants already have a copy of the same data set and are supposed to arrive at the same voting results, which is also mathematically proven. This increases the speed with which a consensus is reached at.
Blockchain vs. Hashgraph
By many standards, HashGraph looks like the perfect replacement for the blockchain. This is because HashGraph improves upon many of the flaws of the blockchain infrastructure by solving them from the ground up. This allows applications built on HashGraph to be wary of the blockchain system’s fundamental flaws, thereby being more efficient and optimized.
- Fast – more than 250,000 transactions per second and very low latency (in seconds)
- Fair – it ensures fairness in consensus on ordering and timestamps and fairness in access, which is key to any distributed ledger system.
- Secure is tolerant of behaviors like lying, collusion, and selective non-participation, which is essential for distributed ledgers. In technical works, it is Asynchronous Byzantine Fault Tolerant, the gold standard for security in distributed systems.
HashGraph is an innovative update to a blockchain. It uses a traditional Gossip Network technology to improve the blockchain’s fundamental flaws. But, in many ways, HashGraph should have replaced blockchain already.
But then, just like Blockchain, HashGraph has its fair share of trade-offs. What it gains in efficiency and optimization, HashGraph loses in decentralization and openness. HashGraph has to work in a relatively closed environment to work at total capacity compared to a blockchain. Blockchain thrives in distribuends, meaning that the greater the number of participants, the more its strength. Whereas HashGraph can function in a distributed environment, the network’s efficiency declines with an increase in the number of participants.
Btc
Bitcoin
$62.547
price
price
0.84959%
price change
And so, HashGraph should not be viewed as a replacement for blockchain, as many “market experts” have confidently claimed. Instead, HashGraph and blockchain are like Pepsi and Coca-Cola of the technology world. Each side has its advantages and trade-offs, allowing prospective users to weigh their options and choose the best infrastructure that suits their needs.
Previous
Token Burning: Reasons Why Burning Tokens Is Important
Next
Compound Implements Community-Driven Governance Proposals
Written by
Sudarshan M
@Sum
186 posts
More author posts
The Difference between an ‘Open-Community’ and ‘Closed-Network’ Blockchain
R3 is a consortium of about 200 firms coming together to research and develop distributed database models somewhere along Bitcoin's lines. Usually, they receive a lot of heat as they say they are researching a corporate or private model of "Blockchain" but are developing a version of Distributed Ledger Technology (DLT). This debate between a Public Blockchain and a Private Blockchain (yes, it's an oxymoron) is the center of great distress. Another such debate that hasn't reached the mainstream yet,…
5 years ago
How to Invest in Cryptocurrencies – 10 Must-Follow Tips
The Cryptocurrency world is filled with scams, frauds, pump-and-dump schemes, and dozens of other ways by which people can steal your money. Along with that, the excruciating volatility of the market doesn't help either. It is easy for any new investor to be scared off by an already-infested market with so many money-losing schemes. But then, don't we always say, "greater risk comes greater reward"? In still-nascent and budding markets, there are as many ways of making money as there are…
5 years ago
Looking for an XRP Wallet? Here are the Best Ripple (XRP) Wallets
Ripple (XRP) is a cryptocurrency project created by Chris Larsen and Jed McCaleb under Ripple Labs. It was primarily built as a digital asset to overcome several international banking problems, cross-border payments, and sourcing liquidity. As a result, XRP has remained among the top 10 cryptocurrencies by market cap since 2017. The main target audience of XRP is banks and payment providers, where the speedy settlement time can function as a liquidity source. This allows Ripple to tap new and…
5 years ago
The 21M Bitcoin Mystery – The Origins of Satoshi Nakamoto’s Supply Cap Decision
The Bitcoin Solution With the advent of Bitcoin came a newfound revolution - a revolution in distributed computing, decentralized organizations, and, most importantly, in the borderless medium of exchange. To many, Bitcoin represents a form of hope, a mechanism that would finally help the world get rid of centralized power and control. To others, Bitcoin was nothing more than an alternative for money. Satoshi Nakamoto, the pseudonym behind Bitcoin's creation, saw their invention as nothing more than an experiment. To…
5 years ago
Looking at Public Blockchains vs. Private Blockchains
Blockchain is a distributed, decentralized public ledger, which is a continuously growing list of records stored in the form of blocks. These blocks in a blockchain are connected through cryptography, which keeps the transactions' confidentiality intact. A blockchain is a time-stamped series of immutable (tamper-proof) records of data, which is not managed by a central authority but by a computer cluster. Every data shared on a blockchain is visible to all participants, and everyone is accountable for their actions. A…
5 years ago
Cryptocurrency Cards – Which are the Best Crypto Cards Providers?
Cryptocurrency is great, right? You buy, store, spear through the volatility, and eventually hope to accumulate profit several times greater than your initial investment. That is the plan of a large majority of cryptocurrency HODLers. But wait, is that what crypto is all about? Buy, HODL, and Sell? Wasn't cryptocurrency a global, decentralized innovation made a reality by blockchain technology? Shouldn't it be used globally by now, given its ever-increasing market interest? With the advent of Cryptocurrency Credit/Debit Cards, the…
5 years ago
Publish your own article
Guest post article. Guaranteed publishing with just a few clicks
START PUBLISHING ADVERTISE WITH USBrowse categories
Explore trending topics in the crypto community right now.
Bitcoin
SEC Greenlights Multiple Bitcoin ETFs, Signaling Major Leap for Cryptocurrency Markets
The U.S. Securities and Exchange Commission (SEC) has made a landmark decision by approving 11 spot bitcoin exchange-traded funds (ETFs). This move represents a significant moment in the cryptocurrency industry, marking a shift towards greater institutional adoption and accessibility for investors. The approved ETFs include products from major firms such as BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETP Trust, WisdomTree Bitcoin Fund, Fidelity Wise Origin Bitcoin Trust, VanEck Bitcoin Trust, Invesco Galaxy Bitcoin…
Marius Bogdan Dinu 
@bdinu89
@bdinu89
1 year ago 
597 views
Bitcoin Should be Banned in the United States: Charlie Munger
Berkshire Hathaway’s vice chairman, Charlie Munger, called for a ban on cryptocurrency in the United States on Monday, similar to the one in China. In an op-ed published with the Wall Street Journal, Munger argued that Bitcoin isn’t a currency, commodity, or security, but simply a form of gambling “ with a nearly 100% edge for the house. As such, the enactment of a federal law should ban such things from happening. Munger cited the Chinese communist party’s ban on…
2 years ago 1.5 k views
Tesla’s BTC Positions Remained Unchanged in Q4 of 2022
According to a new earning report from automotive manufacturer Tesla, the company did not sell any of its BTC holdings in the fourth quarter of 2022. Amid speculations that the company had traded BTC during the testing bears, CEO Elon Musk revealed it was yet holding on to its BTC stash. Tesla Maintains Holdings After Initial Sell-Off In Q2 of 2022, Tesla opted to sell 75% of all its BTC. The car manufacturer received close to $950M in exchange. Notably,…
2 years ago 1.5 k views
Here’s When Grayscale Debates the SEC in Court on its Bitcoin Spot ETF
The District of Columbia Court of Appeals has marked a date for when Grayscale and the Securities and Exchange Commission (SEC) may present oral arguments regarding the approval of a Bitcoin spot ETF. Each side will present its case at 9:30 am ET on March 7, with the SEC arguing against the product, and Grayscale arguing in favor. Grayscale VS SEC The court date – revealed in a court order filed on Monday according to CNBC – is much earlier…
2 years ago 1.8 k views
Ethereum
Ethereum’s Zhejiang Staking Withdrawal Testnet for Shanghai is Live
At 15:00 UTC on Wednesday, the much-anticipated Zhejiang testnet for staking withdrawal went live on Ethereum’s Beacon chain. Zhejiang will enable the testing of the Ethereum Improvement Proposal (EIP) 4895 which allows for staking withdrawals. This is in preparation for the network’s next major update, the Shanghai hard fork slated to launch sometime in March. Users Can Make Simulated Withdrawals with Zhejiang In a tweet yesterday, DevOps engineer at Ethereum foundation Barnabas Busa gave details about the Zhejiang testnet slated…
2 years ago 1.6 k views
Ethereum Devs Disagree Over Technical Tweak as Shanghai Upgrade Nears
Post-merge Ethereum users have been eagerly awaiting the commencement of the network’s next major upgrade, Shanghai. However, after over 3 months of prep time, it appears the Shanghai rollout isn’t going as smoothly as expected. What Exactly is the Shanghai Upgrade? In September last year, the much-publicized Ethereum Merge also known as the Ethereum 2.0 upgrade went live. Ethereum underwent some significant changes as its consensus mechanism transitioned from proof-of-work to a cost-efficient proof-of-stake system. However, since the Beacon launch…
2 years ago 1.6 k views
FTX Hacker Converts 50k Stolen ETH to BTC
Per a report from blockchain analysis firm Chainalysis, the attacker behind the Nov 11 FTX exploit, is converting the stolen ETH to Bitcoin. There were muted fears the seemingly inexperienced perpetrator could dump all its ETH holdings. On Sunday, the attacker dumped 50k ETH on-chain, with ETH's price dipping by almost 7%. https://twitter.com/chainalysis/status/1594349583416840199?s=20&t=pgvQHeVytI20eKQ1ls9bxw Hacker Moves 50,000 ETH to New Address Over the past week, the perpetrator had been steadily swapping the cryptocurrencies they had carted off for Ether tokens. This…
3 years ago 1.9 k views
Censorship Concerns: 51% of Ethereum Blocks Now OFAC Compliant
According to new data, over half of the blocks on the Ethereum network now reportedly comply with the US Treasury OFAC’s standards. This comes roughly a month after the platform’s monumental merge update. Phasing Out Tornado Cash The Office of Foreign Assets Control is the intelligence and enforcement agency of the US Treasury Department. Indeed, the OFAC administers and enforces US financial sanctions. A prime example of this is the recent, highly-publicized ban on crypto mixer Tornado Cash. According to…
3 years ago 1.8 k views
Trading
How to Leverage Arbitrage Opportunities in Crypto Markets
Cryptocurrency arbitrage has become an increasingly popular investment strategy as the crypto market grows and evolves. Arbitrage involves taking advantage of pricing discrepancies between markets or exchanges to profit. Investors can leverage profit opportunities by understanding cryptocurrency arbitrage while managing associated risks. In this guide, we'll explore cryptocurrency arbitrage and how it works. A Bitcoin-related example will help us illustrate the concepts of this strategy. What is Arbitrage and How Does it Work in Crypto Markets Crypto arbitrage trading is…
2 years ago 3 k views
The Different Types of Copy Trading in Crypto
Are you interested in trading cryptocurrencies but feel intimidated by the complexity of the process? Copy trading is a great way to get into crypto without needing to be an experienced trader. With copy trading, investors can benefit from the experience and knowledge of more experienced traders, allowing even beginners to succeed. How does copy trading work, and which tips do you need to know to succeed? In this article, we'll explore all aspects of copy trading in crypto. What…
2 years ago 1.7 k views
How to Spot an Unsafe Crypto Exchange
Cryptocurrency exchanges have become increasingly popular as they provide a platform for people to buy and sell digital assets. Unfortunately, not all crypto exchanges are safe or reliable. With the rise of cybercrime and fraud, you must learn to spot an unsafe crypto exchange before investing your money. This guide will help beginners identify and avoid potential risks when selecting a cryptocurrency exchange. The Role of Crypto Exchanges on the Digital Assets Market Cryptocurrency exchanges play a crucial role in…
2 years ago 2.2 k views
What Is Grid Trading in Crypto?
Crypto grid trading has become a popular strategy because of its ability to help traders capitalize on market volatility. Grid trading means you can produce consistent profits by taking advantage of price differences in different markets or time frames. By establishing buy and sell orders at predetermined intervals, you can take advantage of these fluctuations in an automated way. This guide will explore the different aspects of grid trading and provide an overview of its benefits, challenges, and more. Through…
2 years ago 1.6 k views
Tech
Introducing una Messenger: A Paradigm Shift in Blockchain Connectivity
The digital landscape is set for an unprecedented transformation with the introduction of una Messenger, the latest innovation from web3 development powerhouse Wemade. This platform represents an evolution of the "PAPYRUS Messenger," serving as the cornerstone of the ambitious "unagi" initiative, aimed at catalyzing the mass adoption of blockchain technology. The "Unbound Networking & Accelerating Growth Initiative" seeks to bridge the divides between diverse blockchain services and networks, heralding a new era of interconnectedness. A New Frontier in Blockchain Communication…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 574 views
Bit2Me Champions WEMIX Token in Pioneering European Listing
Bit2Me, Spain's premier virtual asset exchange, has recently broadened the horizons for cryptocurrency enthusiasts by listing WEMIX, the cornerstone token of the WEMIX3.0 blockchain ecosystem. This marks a notable achievement as WEMIX's inaugural venture into the European market, emphasizing the token's role in facilitating a range of blockchain-based activities, from gaming transactions to decentralized finance (DeFi) applications. Launched with the intention to democratize access to WEMIX for the 450 million Spanish speakers around the globe, this strategic move aligns with…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 404 views
CryptoVirally Expands with Fresh Crypto Marketing Offers and Cointelegraph Upgrades
In an exciting update for the cryptocurrency marketing landscape, CryptoVirally has announced a series of new entries and enhancements to its already comprehensive range of services. These updates, aimed at providing tailored marketing solutions for crypto projects, include new limited-time offers and expanded options for Cointelegraph publications. Limited Offers: A Game-Changer in Crypto Marketing CryptoVirally's limited offers section presents an enticing opportunity for crypto projects to leverage high-impact marketing services at discounted rates. These offers, available for a limited period,…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 465 views
Breaking Boundaries in Blockchain: WEMIX’s ‘una Wallet’ Sets New Standard for Multi-Chain Asset Management
The WEMIX Foundation has unveiled 'una Wallet,' a revolutionary digital wallet designed to offer unparalleled convenience and security in managing digital assets across various blockchain networks. The announcement, made on January 17, 2024, signifies a new era in the seamless integration of multiple blockchain protocols, including Arbitrum, Avalanche, BNB Smart Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX3.0. 'una Wallet' is more than just a digital wallet; it represents the culmination of WEMIX's innovative efforts in the blockchain space. It serves…
Marius Bogdan Dinu
@bdinu89
@bdinu89
1 year ago 592 views