Deep Look Into 10,000 Transactions Per Second Claim

Hedera Hashgraph, a decentralized public network targeting enterprises and claims to be capable of processing 10,000 cryptocurrency transactions per second, has publicly launched its beta mainnet this Monday.

Hedera claims that its Hashgraph is capable of processing more than 10,000 cryptocurrency transactions per second, at the cost of approximately $0.0001 in fees per transaction.

Hedera utilizes gossip protocolHedera confirms and broadcasts transactions utilizing a "Gossip" protocol.

The council is set to comprise 10 members at launch, with three members to be afforded two votes initially due to Hedera's belief that 13 votes offer greater security than 10 - despite Hedera's website also stating that all members will be afforded "An equal vote on network and platform decisions."

PoW efficiency vs. HashgraphWall also refutes Hashgraph's purported superior efficiency when compared with PoW. Wall argues that while Hedera Hashgraph does not contain blocks, it does relay messages - which contain one or several transactions.

Unlike with a blockchain, the message senders are different from the nodes, with senders typically comprising entities from outside the network seeking to get their transactions confirmed by Hedera's nodes.

Comparison between Hashgraph and EthereumSome can argue that Hedera has made a fallacious comparison between its performance and that of Ethereum, pointing to Hedera's claim that Ethereum is only capable of processing roughly 12 transactions per second while Hashgraph can purportedly process 10,000.

Hedera's white paper suggests that the number of transactions that Hashgraph can process is only limited by the bandwidth available to each node on the network.

Further, as Hedera is cloning the EVM to underpin its smart contracts service, Hedera fails to address the bottlenecks limiting the speed of Ethereum transactions - which instead comprise the inefficiencies inherent to the EVM and solid-state devices.

Looking at Hedera's performance claims in finer detail reveals that Hashgraph can only process 10 transactions per second for "Other services" - indicating that Ethereum is able to process more smart contracts per second than Hedera.