Guide to know about Stellar vs Hashgraph
Stellar vs hashgraph:
The stellar network is a blockchain based distributed ledger network which connects payment systems, banks and people to facilitate the low cost, cross asset transfers of value including payments.
Stellar has its native cryptocurrency called lumens which is denoted by the symbol XLM. All three terms called stellar, lumens and XLM are used interchangeably though stellar is blockchain network, lumen is a cryptocurrency and XLM is its trading symbol.
Stellar is also a cross border transfer and payment system which connects the financial entities with an aim to significantly decrease the transaction costs and time lags.
Stellar is primarily focuses on the developing economies in the areas of remittance and bank loans to those who are still outside of the scope of banking services. It doesn’t charge the institutions or individuals for using the stellar network.
It received the initial funding from the payment startup stripe and donations from the organizations. It covers the operational costs by accepting the tax deductible public donations and by using the 5% of lumens set aside initially for the purpose.
Stellar works similar to most decentralized payment technologies like bitcoin, its key distinguishing feature is its consensus protocol. The current stellar is a result of 2014 fork which creates the Stellar Consensus Protocol (SCP) following which stellar became the open source system.
As per the protocol, the transaction authentication process is confined to a select set of trustworthy nodes rather than being left open to the whole network of nodes. Each node on the network selects a set of such trustworthy nodes and a transaction has considered approved once authenticated by all node that are a part of this select group.
This shortened approval cycle which allows the stellar network to process the transaction faster and keep the transaction costs lower.
Stellar supports a distributed exchange model which allows the user to send payment in a particular currency like EUR though they may be holding USD credit. The network automatically performs the forex conversions at the best available rates. The receiver can withdraw the EUR which is equivalent through the partner institute like a bank.
The biggest difference between stellar and other cryptocurrencies is that stellar is not for profit. Users buying into stellar that support the non profit stellar.org which uses the technology in a way to fight poverty.
Using the stellar framework and lumen currency, stellar.org wants to create a network which will help people and business in regions of high diversity and low monetary stability circumvent banks, exchange the money through multi currency transactions and provide the very fast liquidity.
Hashgraph:
Hashgraph is said to be a more robust system. Its consensus algorithm which provides a new platform for distributed consensus. Some of the attributes which are commonly used to refer or describe the blockchain are transparent, distributed, consensus based, flexible and transactional.
Hashgraph bears all these features. It is a data structure and consensus algorithm which is much faster, fairer and more secure than blockchain. It is described as future of distributed ledger technology. It uses the special techniques to achieve fast, fair and secure consensus.
Once the hashgraph is ready, it is easy to know what a node would vote, since we are aware of information that each node has and when they knew it. This data can be used as an input to the voting algorithm and to find which transactions have reached consensus quickly.
Blockchain technology is an incorryptible digital ledger of economic transactions. It can be programmed to record not just financial transactions but virtually everything of value.
Information held on a blockchain exists as shared and is continually reconciled or updated. This ensures that it records the data which holds ar identical across the network and not stored in any individual location.
Blockchain cannot be controlled by any single entity and it has no single point of failure. Hashgraph claims to support a superior data structure capable of solving many problems that the blockchain community has been struggling with for some time like consensus mechanisms.
Hashgraph is an efficient consensus protocol which can help us reach a very high speed of transaction processing and enjoy a higher security. Being used in private settings, this platform totally justifies author’s claims about its speed and safety.
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