Verifiable timestamps and ordering of events
Distributed ledger technologies (DLT) have the potential to disrupt and transform existing markets in multiple industries.
However, in our opinion there are five fundamental obstacles to overcome before distributed ledgers can be widely adopted across industries and geographies: (1) Performance, (2) Security, (3) Governance, (4) Stability, and (5) Regulatory Compliance.
The Hedera whitepaper examines these obstacles and discusses why Hedera Hashgraph is ideally suited to support a vast array of applications and become the world’s first mass-adopted public distributed ledger.
The whitepaper includes:
- Explanations of how hashgraph works and particularly how it is fair, fast, Byzantine, ACID compliant, efficient, inexpensive, timestamped, and DoS resistant.
- Performance test results with various combinations of nodes and geographic distributions, which measured throughput ranges up to almost 500,000 tps for achieving consensus. Those results do not include the time to process transactions, such as the time for signature verifications. Initially, transaction processing is expected to be throttled at 10,000 tps for cryptocurrency transactions and 10 tps for other services, and to increase systematically through the coming months.
- Hedera’s plans for sharding will allow the network to scale to even greater throughput for some transactions.
- A full technical report describing the hashgraph data structure and algorithm, including mathematical proofs that hashgraph is asynchronous Byzantine Fault Tolerant (ABFT), which is the gold standard for security in the field of distributed consensus.
- A description of mechanisms beyond hashgraph that are necessary for a public permissionless ledger, including how Hedera’s proof-of-stake model protects the network against Sybil attacks and how transaction fees protect against DoS attacks.
- An overview of the Hedera Governing Council, a rotating group of up to 39 renowned enterprises across multiple industries and geographies, that has decentralized responsibility for approving software code updates and other matters of network governance.
- A description of how the governance structure is deliberately designed to ensure that no single member will have control, and no small group of members will have undue influence over Council decisions.
- An explanation of how the separation of governance from consensus supports continued decentralization over time.
- An overview of Hedera’s technical and legal controls that provide the stability and predictability that we think markets demand for mainstream adoption. This includes controls to ensure that the network will not fork, while providing open review of the underlying codebase and enabling developers to freely build open-source or proprietary applications on the Hedera platform.
- An overview of Hedera’s fee and payment model to ensure nodes are motivated to participate in the network.
- Description of Hedera’s technical features—including controlled mutability of the ledger’s state and the ability for users to attach identify credentials to accounts – that enable future functionality such as opt-in identity mechanisms that give users control over their data while also allowing application developers to fulfil their consumer protection and regulatory compliance obligations.
The hashgraph data structure and consensus algorithm provides a best-in-class, unmatched combination of performance and security. Read the whitepaper and learn more here.