Blockchain vs Hashgraph vs DAG vs Holochain | Types of DLT Explained

welcome to whiteboard programming where we simplify 
programming with easy to understand whiteboard   videos and today I'll be sharing with you the 
types of distributed ledger technologies along   with a detailed comparison between blockchain, 
hashgraph, directed acyclic graphs or dag,   and holochain so let's get started number one 
blockchain in the white paper that brought bitcoin   to the world the author noted that a network 
would collect transaction information in blocks   and other blocks would build onto each other 
forming a chain of blocks hence the name comes   blockchain here interestingly each block produces 
a unique hash that identifies the transaction   and if one attempted to alter the details of 
the transaction a totally different hash will be   generated this then will prove as an evidence of 
a corrupted or an invalid transaction which then   further will be rejected by the blockchain and 
will not be recorded on the block on the other   hand the valid transactions are published on the 
public ledger which every node that is participant   on the network has the access to essentially this 
distributed nature of public ledgers makes it even   more difficult for parties to alter information 
promoting transactions to happen under strict   transparency these qualities of transparency 
and immutability or you can say integrity   are notably the major revolutionary aspects of 
blockchain features and is the biggest reason   in blockchain disrupting many industries in the 
21st century interestingly blockchain is not as   new a concept as we might think the mention of its 
fundamental structure and operations dates back to   over 27 years ago when blockchain was invented 
however bitcoin and other cryptocurrencies cast   a new light onto the groundbreaking technological 
innovation through their application it is worth   noting that these same cryptocurrencies created 
the need for solutions surrounding blockchain   which we see today and marked the beginning of 
the new distributed ledger technology networks   like holochain, dag and hashgraph also do note 
that at the heart of the new networks there lies   a vision to create a highly scalable network 
further each of these networks seek to achieve   higher transaction per second capability for its 
sole application next let's talk about hashgraph   now hashgraph is a type of distributed ledger 
whose foundation lies in consensus building   in particular, we all realize that DLT relies 
on consensus timestamping to make sure that   transaction on the network agree with each 
other and with every node on the platform   the consensus algorithm brings out the 
robustness and superiority of the DLT network   unlike the traditional DLTs this type of DLT
built achieves transaction success solely   on the basis of consensus and because of this 
nodes do not have to validate the transaction   that take place on the network and as such users 
do not have to present any proof of work as well   this aspect generally eliminates the need for 
two things first traditional blockchains which   relied on proof of work need many computations to 
achieve transaction success and as a result this   factor makes transaction bulky which achieves very 
slow number of transaction per second or tps ratio   on the contrary hashgraph only requires 
the node on the network to achieve   consensus through gossip about gossip 
technique and virtual voting technique   interestingly these techniques again do not 
require proof of work to validate transaction   and as a result there is little time between 
initiation and completion of a transaction   subsequently the lack of need of proof of work 
in the DLT network means that there can be   thousands of transactions per seconds or tps 
and interestingly the team behind hashgraph   claims that the network can achieve more 
than 250,000 tps which is quite amazing   based on the current alternatives along with the 
virtual voting and gossip about gossip techniques   nodes on the hashgraph DLT are able to experience 
fairness and in particular consensus time-stamping   avoids the issues of blockchain like cancelling 
transaction by putting them on future blocks next number 3 directed acyclic graphs or dag 
well hashgraph is not the only effort to correct   the limitations of blockchain in the 21st century 
developers are focusing on data structure of DLT networks that affect their efficiency in the 
similar manner directed acyclic graphs or dag   employs a different data structure that brings 
about more consensus into the system in particular   dag is a type of dlt that relies on consensus 
algorithm and here consensus algorithms operate   in a way that the transaction that prevails simply 
requires majority support within the network in   such a network there is much more cooperation, 
teamwork, and nodes have equal rights too   unlike traditional blockchain technologies where 
proof of work is the key dag ensures that there   is fairness and this kind of fairness gives the 
impression that the network sticks to the initial   aim of distributed ledger technology which was 
to democratize the internet economy confused on   this notion well for instance a private network 
relies on centralized leadership which takes out   the democracy from the DLT on the contrary dag 
gives equal significance to each and every node   existing on the network therefore this means that 
each node on the network does not have to refer   to any other node on the network already there are 
projects like byteball that use dag structure to   create new generation networks free of limitations 
from traditional blockchain and one of the most   notable new generation networks employing the 
dag structure is iota tangle here the miner and   nodes can perform dual duties wherein nodes in 
the blockchain network can perform separately   this means that a miner on tangle can issue 
a transaction and validate a transaction   at the same time number four holochain this DLT
technology boasts that it is what comes after   blockchain technology and despite making such 
bold statements the holochain team really   has some solid propositions that rival other 
platforms in particular holochain is after   completely revolutionizing the internet as 
we know it one of the interesting visions of   holochain is to change the present structure of 
the internet the internet today as we know is   structured alongside server client basis this 
is to say that decentralization is not optimum   and further there is little democracy and 
freedom regarding the utilization of the resource   in the light of this holochain wants to create 
a distributed network that can also be the basis   of next generation internet according to 
the platform's whitepaper holochain is an   amalgamation of blockchain, bittorrent, and github 
this is to say that this is a DLT that distributes   power among the nodes to avoid any instance of 
centralized control of the flow of data here a   distributed platform simply implies that each node 
will run on a chain of its own and further implies   that nodes or miners have the freedom to operate 
autonomously and that's only possible because of   something the team behind holochain claims to call 
as distributed hash table or DHT in which users   can store data using certain keys and this data 
stays in actual locations distributed in various   locations across the globe now let's talk about 
advantages of holochain so the interesting part   about this data structure is that the network 
does not experience the burden of congestion   which is quite common in traditional blockchain 
this distributedness of the location that store data relieves the network and gives it more space 
for scalability as such transaction over this   network can easily attain millions of tps without 
any significant add-on cost further as we all know   scalability is a huge problem that is dodging 
both public and the private blockchain platforms   for instance developers usually run into huge 
hurdles while creating decentralized applications   or Dapps on traditional blockchain this is 
because they need to validate a transaction   from huge community present on the platform on 
the contrary a developer on holochain platform   will only need confirmation from a single 
chain that makes up the whole dlt network   as such there is an insubstantial wait time 
between request and confirmation in this type   of distributed ledger technology up next let's 
understand the brief difference between various   distributed ledger technologies starting 
with first as blockchain vs hashgraph   so blockchain differs from hashgraph in quite 
more fundamental ways particularly hashgraph is   response to major limitation of blockchain like 
scalability and transaction rates and also do   note that hashgraph mainly is different from blockchain when it comes to consensus mechanism on one hand   blockchain mainly relies on activities of miners 
within the network to facilitate the process of   transactions this is to say that a miner can 
greatly affect the success of a transaction   single-handedly in the network particularly 
blockchain relies on proof-of-work which miners   can use to verify if a transaction is genuine or 
not and as such transaction rates are already slow   and quite expensive as well further the proof of 
work implies that network comes under huge burden   of bulky computation that impose network drags 
and sometimes failures too on the other hand   let's see hashgraph hashgraph employs consensus 
mechanism that does not give too much powers   to miners on the contrary the hashgraph uses 
consensus algorithms called gossip about gossip   and virtual voting to decide which transaction 
is valid and should be added to the network   this way the majority has a say over which 
transactions should go through the network   and as we already know that in hashgraph there is 
much more fairness as compared to blockchain next   let's talk about blockchain vs dag so 
in particular the word acyclic in directed   acyclic graphs or dag implies that operations are 
strictly one directional similarly immutability   is one aspect that makes blockchain popular 
over previously existing means of data storage   further both platforms operate via consensus based 
system where nodes decide what happens and as such   there is some semblance of democracy as compared 
to platforms that go through central command and   unfortunately that is as far as the similarities 
go like hashgraph, DAG fundamentally differs from   blockchain when it comes to data structure 
like earlier discussed blockchain arranges   transaction in blocks such that each body of the 
information pertaining to a particular transaction   make up a single block therefore succeeding 
transactions result in formation of newer blocks   on the contrary under dag the previous transaction 
has stronger relationship or influence to the   succeeding transactions and for a transaction to 
succeed in dag network it has to validate only   two of the previous transactions this is to say 
that a transaction will only need to ensure that   two of the previous transactions do not contain 
conflicting information interestingly this differs   greatly from blockchain where a transaction has to 
validate numerous transactions before being valid   further as blocks in blockchain multiply it 
becomes increasingly difficult in terms of   computation to achieve new blocks and accordingly 
mining also gets power intensive and hence   expensive on the other hand transactions 
in dag network are much more efficient   as more validations happen just in case the 
network volume builds up so it remains efficient   even for long term usage next let's talk about 
the difference between blockchain and holochain   well as we all just learned that holochain is some 
kind of revolutionary technology that seeks to   turn everything on its head and like blockchain 
holochain seeks to allow secure and transparent   transactions among players of the network but 
many people ask is holochain better well i'll say   that holochain is somewhat next level compared to 
blockchain essentially holochain seeks to introduce   a new dynamic far different way as compared to the 
fundamental vision of blockchain where blockchain   seeks to decentralize transactions such that 
people can interact directly without the need   of middle party holochain on the other hand wants 
to make their interactions distributed holochain   fundamentally creates a network composed of 
various dlt networks and therefore it is one   of the major network that is limitless in terms 
of scalability and the number of transactions   user can accomplish in a second on blockchain 
network nodes rely on single network to initiate   and validate transactions and as such as more 
blocks join the chain computational burden   multiplies as well as the fees associated 
with the transaction on the contrary   nodes in holochain run their own chains therefore 
there is much more room for computations to happen   the fact that each node runs its own chain in 
holochain implies that there is no need for miners   as such transaction fees are almost non-existent 
and further this implies that there is no   tokenization on the platform but rather smart 
contracts ruled the space hereby saying nodes   running on their own chains imply that they will 
be able to process ledgers that solely belong to   them this way relationship between various 
nodes on the network is trusted completely   and further here decentralized applications 
have infinite space to operate in and that's   why one can expect a decentralized application to 
operate at their optimum or the best performance   at all instances lastly I'd like to say that 
comparison of DLTs that is blockchain vs   hashgraph vs dag vs holochain brings 
out interesting aspects of each platform   just do note that speaking overall it's true that 
all DLTs share common aspects of transparency,   consensus, transactional, distributed nature, 
peer-to-peer, and flexibility of the network   however huge differences emerge in the consensus 
mechanism and structure of the data which exist   within each DLT with that I hope this 
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