CHAPTER 3

Hedera Hashgraph

“PoW is certainly not Asynchronous Byzantine, as ABFT means that

it will work even if the Internet is screwed up in various ways. Even if

an attacker can control the Internet itself, as long as you let enough

messages through, the tree to make any progress at all—the

hashgraph’s Gossip protocol will still work.” - Leemon Baird

Founded: 2019

Native token: HBAR

Market Capitalization: $3.29B

Smart Contract languages: Solidity

In this chapter, we will explore the 2019 launched Hedera Hashgraph

that is built on a Direct Acyclic Graph platform rather than the

Blockchain and yet has surfaced as a prime competitor of Ethereum

for its stability and high scalability.

In April 2021, Hedera crossed 1 billion transactions on its mainnet.

While Ethereum took many years for the same and Bitcoin has not

achieved it yet, Hedera achieved this milestone in just a little over six

months. Needless to mention, today, Hedera Hashgraph is one of

the most used, enterprise-grade public DLT network for the

decentralised economy.

3.1 Consensus Model – Proof of Stake

Hedera’s data structure and consensus algorithm is called

Hashgraph, which is ideal for a distributed environment. It’s

underlying asynchronous Byzantine Fault Tolerant (aBFT) algorithm

makes sure that no single node (or small group of nodes) can

prevent the network from reaching a consensus.

Hashgraph works on a Proof of Stake consensus model where the

transactions are validated by a group of close to 40 members