IOTA vs Hedera Hashgraph

November 29, 2022


Blockchain technology has brought revolutionary changes in the digital world. It has transformed the concept of trust and security in digital transactions.

As blockchain is getting more mainstream, new platforms are emerging almost every day. IOTA and Hedera Hashgraph are examples of new blockchain platforms that claim to have an edge in scalability, security, and speed.

But what separates IOTA from Hedera Hashgraph? And which platform is the best choice for your projects?

In this blog post, we will compare IOTA and Hedera Hashgraph in terms of their unique features, use cases, and limitations.


IOTA is a distributed ledger technology designed to facilitate Internet of Things (IoT) transactions. It differentiates from other blockchain platforms by using a Directed Acyclic Graph (DAG) mechanism. Instead of using miners, it requires users to validate two previous transactions with each of their own.

Main features

IOTA offers:

  • Scalability: IOTA claims to have infinite scalability as its Tangle network doesn't rely on miners.
  • Zero fees: Unlike other blockchain platforms, IOTA doesn't charge any fees for transactions.
  • Quantum-resistant: IOTA uses Winternitz Hash-based Signature Scheme (W-OTS) that is designed to withstand quantum computing attacks.
  • Fast transactions: IOTA can process transactions up to 1000tps.

Use cases

IOTA is mainly being used in the Internet of Things industry, smart cities applications, supply chain networks, and digital identity systems.


IOTA's security has been questioned in the past due to several bugs discovered on its system. Its DAG structure also makes it vulnerable to denial-of-service (DoS) attacks.

Hedera Hashgraph

Hedera Hashgraph is a new blockchain platform that claims to have a distributed ledger technology that offers high-speed, fair, and secure transactions. It uses a consensus algorithm that combines both the benefits of Proof-of-Work (PoW) and Proof-of-Stake (PoS)

Main features

Hedera offers:

  • High-speed: Hedera claims to process transactions up to 10,000 tps.
  • Fairness: Its consensus algorithm provides a fair and secure transaction environment.
  • Public and private blockchain integration: Hedera allows its users to have both private and public blockchain features in a single platform.
  • Security: Its hashgraph structure ensures secure and tamper-resistant transactions.

Use cases

Hedera Hashgraph is being used in the decentralized Social network industry, supply chain management, and digital identity systems.


Hedera Hashgraph's network is in its initial stages of development, which may result in limited number of dApps and developers.


Choosing between IOTA and Hedera Hashgraph largely depends on each project's requirements.

If scalability, zero transaction fees, and speed are the main criteria behind your project, then IOTA could be a better choice. But if security, fairness, and public/private blockchain integration are essential, then Hedera Hashgraph could be a suitable option.

It's important to do your own research before deciding on the best platform to use.


Note: All data and information mentioned in this blog post were taken from the above-mentioned sources as of the writing date of this blog post.

© 2023 Flare Compare