No wonder the blockchain has driven the world by storm, but the fact is that the technology is vulnerable to certain flaws. Despite facing numerous challenges, the technology exhibit some issues to regulate the balance between security, scalability and decentralization. Meanwhile, other innovations have started looking for ways to advance distributed ledger technologies beyond blockchain. One of the most promising technologies is Hedera Hashgraph development.
What is Hedera Hashgraph?
Hedera Hashgraph is a distributed ledger technology comprising a new form of distributed consensus for quick and secured infrastructure to run decentralized applications (dApps). Hashgraph is a data structure based on unique techniques such as virtual voting and gossip about gossip. Among its numerous services, HCS is the fourth service offered by Hedera, next to cryptocurrency, smart contracts, and file services.
Significance of Hedera Consensus Service (HCS)
The Hedera Consensus Service is the first Distributed Ledger Technology (DLT) network service that solely offers the validity and order of events with transparency into the history of events over time, without any necessity of persistent history of transactions. As a result, the Hedera Consensus Service provides fast, fair, and secure consensus at a lower cost than any other public distributed ledger network.
HCS is simply a trust layer for any permissioned network to facilitate verifiable and immutable records of messages. Application messages are circulated for consensus to the Hedera network with ordered and trusted timestamps. Hence, HCS acts as a decentralized ordering service that enables encryption of the actionable information to maintain user’s privacy. HCS assists in building the hedera hashgraph dApps that reap the benefits of Hedera hashgraph like:
- High throughput
- Fast finality
- Fair ordering
- asynchronous Byzantine fault tolerance for security.
- Strong privacy
- High efficiency and low cost.
Benefits and Applications of Hedera Consensus Service
HCS makes it possible to achieve the trust of being centralized, thereby maintaining the privacy and performance of being centralized for existing centralized platforms like auction sites, stock exchanges, and MIMO games. Moreover, Hedera Consensus Service can be either standalone or used as a decentralized ordering service with other ledgers like Hyperledger Fabric, Corda, or Ethereum. Hence, applications using DLT platforms like Hyperledger can use HCS with all the benefits of a public network like :
- Provision of distributed trust of a public network.
- Enabling the use of a public network for trust while protecting private information in private servers.
- Removal of up-front and ongoing costs associated with creating a private network.
Different industries use HCS for:
- Monitoring assets across a supply chain.
- Counting music streams to determine remittance for digital rights management.
- Creating an auditable log of asset transfers.
- Generating payable events across an advertising platform.
The Hedera Consensus Service adds the value of quick, secure, and decentralized consensus to any application. Organizations and individuals can create hedera hashgraph tokens and trade between private ledgers employing the fair global ordering of transactions for any application. As a result, the Hedera Consensus Service reduces the cost of operating private networks by maintaining privacy and scalability and improvising the trust model over both private ledgers and centralized servers.
For low-latency consensus, fair ordering, and high throughput, connecting to the Hedera Hashgraph consulting services team can help you explore the unlimited potential of Hedera Hashgraph technology for your business. However, choosing the right Hedera hashgraph development company can assist you in integrating existing app or permission blockchain network with Corda plugin, hyperledger plugin, and Hedera hashgraph microservice.