If you are actively involved in the crypto domain, then you must have heard a great deal of hype about HoloChain. Many people are calling it an improvement over Blockchain technology and there have also been claims that it can handle 1 Billion transactions per second. Though HoloChain is not as flawless as people are claiming it to be, it is still a great addition to the crypto industry. This article will focus on what exactly HoloChain is and how is it breaking the barriers of Blockchain technology.
What is HoloChain
HoloChain aims to be the mainstream platform on which decentralized applications can be developed. Moreover, HoloChain has positioned itself as an improvement to the existing Blockchain technology. It wants to revolutionize the existing data-centric structure of Blockchain and shift towards an agent-centric system.
Difference from Blockchain
In Blockchain technology, all the nodes in the network are connected and all these nodes in the network have to work together to achieve consensus. HoloChain is able to differ from Blockchain through the use of “hashchains”. Hash chain itself is an older technology of Computer Science in which a digital signature named as ‘hash’ is used for the verification of data.
The blocks in the HoloChain are independent and they have their own hashchains. Nodes in HoloChain are not dependent on the consensus from other nodes for the validation of data. The independent network of HoloChain helps to tackle with one of the major issues in Blockchain, scalability.
Using Decentralization and Centralization on Different Layers
HoloChain uses centralization in the processing of its data as each node works on different data unlike Blockchain where same data is processed by each node in the network. However, HoloChain does employ decentralization which occurs in the sharing and storage of data. HoloChain’s centralized nature gives a massive boost to its performance in comparison to the Blockchain technology.
Live Stream Philosophy
HoloChain’s uniqueness comes from its team reliance and belief on a certain philosophy known as live stream philosophy. HoloChain was invented as a model of real life. In real life, not every action goes through a check. For example, if you post a status on Facebook, does your status go through any permission? No, because real life provides a certain degree of leeway in your actions.
HoloChain’s centralization on computing data has a disadvantage too. It indicates reduced security. However, this does not mean that HoloChain’s team has not implemented any security features. Every hashchain in the HoloChain will have security measure named as DNA. This DNA will record the complete lifecycle of data and a signature will verify each step involved in the life cycle. This data will be saved on the local chain in a scenario like a Facebook status where the data does not need any verification.
However, if there is a transaction with a party, then this data will also be provided to Distributed Hash Table or DHT. After the data goes to the DHT, there is a need for consensus. It is important for any data that has been shared between two parties to be validated.
Since HoloChain works on the real-life philosophy, its token is quite different from other cryptocurrencies. HoloChain’s platform requires an interface for communication with people. This interface is named as Holo which is an ERC-20 token. Holo uses the idle computing resources of a computer and utilizes it to create its own little internet server. Those who volunteer their extra computing resources will be rewarded with Holo tokens.
Another cryptocurrency Substratum has also presented a similar idea for a decentralized internet though they have not been successful to date. It remains to be seen if Holochain defeats Substratum on this front.
Currently, the number of tokens that have been issued is 133 Billion while the total supply is 177 billion and market capitalization so far is 223 million, which is pretty impressive.
Cryptocurrency market is not always driven by rationality and often cryptocurrencies’ prices are boosted by emotions and hype. HoloChain is also one of those cryptocurrencies that have a lot of positive sentiments attached from the industry. More importantly, the hashchain technology behind HoloChain seems innovative and cool enough to make Holochain the next big thing.