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Tezos vs Hedera Hashgraph: A Factual Comparison

January 03, 2022

Tezos vs Hedera Hashgraph: A Factual Comparison

Two blockchain platforms, Tezos and Hedera Hashgraph, have made significant strides in the industry. Both platforms provide cutting-edge features and functionalities that make them attractive to developers and businesses alike. In this article, we will provide an unbiased comparison between Tezos and Hedera Hashgraph, with a focus on performance, scalability, consensus mechanism, and ecosystem.

Performance

Tezos was launched in 2018 and is a self-amending blockchain that allows users to upgrade the protocol without forking the chain. Tezos has an average block time of one minute, with a current TPS (transactions per second) of around 40. This is due to their use of the liquid DPoS (Delegated Proof of Stake) consensus mechanism, which allows for more scalability than traditional PoW (Proof of Work) mechanisms. Tezos has an on-chain governance system that allows token holders to have a say in the decision-making process.

In contrast, Hedera Hashgraph was launched in 2019 and has an average block time of three to five seconds, delivering more than 10,000 TPS. Hedera Hashgraph uses aBFT (asynchronous Byzantine Fault Tolerance) consensus mechanism, which provides instant finality and efficient Byzantine fault tolerance. The network is governed by a council of 39 members, including major companies such as Google, IBM, and Boeing.

Scalability

Scalability is a crucial factor when it comes to blockchain adoption. Tezos and Hedera Hashgraph have different approaches to scalability, but they both provide a high level of scalability.

Tezos uses a self-amending mechanism that allows the protocol to evolve over time. This mechanism ensures that upgrades happen with the consent of token holders, minimizing the risk of hard forks. Additionally, Tezos has implemented a way to integrate state channels, a scalability solution that allows users to perform off-chain transactions, reducing the amount of data that needs to be processed on the blockchain.

Hedera Hashgraph, on the other hand, is designed to be scalable from the ground up. It uses a gossip algorithm where nodes share information with each other in a directed acyclic graph (DAG). This method allows for high levels of parallelism and scalability, making it capable of handling massive volumes of transactions.

Consensus Mechanism

A consensus mechanism is a system used to achieve agreement among nodes on the current state of the blockchain. Both Tezos and Hedera Hashgraph use different consensus mechanisms.

Tezos uses a liquid DPoS consensus mechanism. Liquid DPoS is an evolution of traditional DPoS, where token holders delegate their voting power to validators who are responsible for producing and validating blocks. This approach minimizes the environmental impact of the blockchain and provides for more scalability.

Hedera Hashgraph uses aBFT consensus mechanism, which is designed to achieve high levels of efficiency, security, and fairness. This consensus mechanism ensures that the network is resistant to the Byzantine Generals Problem, where nodes might not reply or behave erratically.

Ecosystem

The blockchain ecosystem is an important factor for adoption. Tezos and Hedera Hashgraph have diverse and thriving ecosystems.

Tezos has a robust development community and has partnered with various companies such as Ubisoft and Societe Generale. Tezos has also launched its incubator program, which provides startups with funding, support, and mentoring.

Hedera Hashgraph has partnered with major corporations such as IBM, Google, and Boeing. Hedera Hashgraph is designed to be enterprise-friendly, with features such as smart contracts, token issuance, and identity management.

Conclusion

In conclusion, both Tezos and Hedera Hashgraph are innovative blockchain platforms that have shown significant potential in the industry. Tezos provides a liquid DPoS consensus mechanism with a self-amending feature, making it more scalable and environmentally friendly. On the other hand, Hedera Hashgraph uses aBFT consensus with DAG technology, achieving high throughput and offering instant finality.

While both platforms have unique features and strong ecosystems, each is better suited for different use cases. Tezos may be better suited for decentralized applications and social impact initiatives, while Hedera Hashgraph may be a better fit for enterprise applications, financial institutions, and identity management.

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