Algorand vs Hedera Hashgraph

October 20, 2021

Algorand vs. Hedera Hashgraph - Battle of the Blockchains

Blockchain technology has come a long way since the advent of Bitcoin. Now, there are numerous blockchain platforms available, each having their own unique technical features and use-cases. In this blog post, we will be comparing Algorand and Hedera Hashgraph, two of the most promising blockchain platforms today, to help you understand the strengths and weaknesses of each.

Overview

Algorand and Hedera Hashgraph are both distributed ledger technologies that aim to provide fast and secure transactions on a decentralized network. Both platforms use a consensus algorithm to validate transactions and create new blocks on the chain. However, there are some key differences between the two.

Algorand

Algorand is a blockchain platform that was created by Silvio Micali, a Turing Award-winning cryptographer. It uses a consensus mechanism called Pure Proof-of-Stake (PPoS), making it one of the fastest blockchain platforms with a transaction speed of over 1000 transactions per second (TPS). Algorand is known for its scalability, security, and efficiency.

Hedera Hashgraph

Hedera Hashgraph, on the other hand, is a distributed ledger technology that uses a consensus algorithm called Hashgraph. Hedera boasts a transaction speed of over 10,000 TPS, making it one of the fastest blockchain platforms. It is also unique in that it offers a governance model via council members who are responsible for governing the network.

Comparison

Transaction Speed

When it comes to transaction speed, Hedera Hashgraph beats Algorand. Hedera Hashgraph can process more than 10,000 TPS, whereas Algorand can handle only around 1000 TPS. However, it's essential to note that both platforms offer fast transactions compared to some other blockchain platforms.

Consensus Algorithm

Algorand uses a consensus algorithm called Pure Proof-of-Stake (PPoS), which has proven to be highly secure and scalable. PPoS is a variant on the proof-of-stake consensus algorithm and is specifically designed to reduce network bottlenecks and increase efficiency. In contrast, Hedera Hashgraph uses a consensus algorithm called Hashgraph, which is highly efficient and designed to provide secure and fast transactions.

Governance Model

Hedera Hashgraph differs from Algorand in that it offers a governance model via council members. The members are selected via a rigorous election process, and they are responsible for governing the network by making decisions that affect the overall direction of the platform. In contrast, Algorand is governed purely by the community, and there are no centralized entities responsible for managing or governing the network.

Conclusion

Both Algorand and Hedera Hashgraph are promising blockchain technologies that offer unique features and benefits. While Algorand focuses on speed, scalability, and efficiency, Hedera Hashgraph emphasizes governance, security, and transaction speed. Ultimately, the choice between the two depends on the specific use case, and it's up to you to decide which platform best suits your needs.

References

  1. Algorand Website
  2. Hedera Hashgraph Website
  3. Hedera Consensus Algorithm
  4. Algorand Consensus Algorithm

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