Hedera Hashgraph - Back to the Basics

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©2020 Hedera Hashgraph, LLC. All rights reserved.
THE TRUST LAYER OF THE INTERNET

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CooperKunz
Developer Evangelist
 
Back to the basics of
blockchains & distributed ledgers
@Cooper_Kunz

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We’ve broken the internet.

Add Gehrig’s photos of Web3 summit

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How’d we get here?

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Users visit a
company’s website
and read data that
the company is
presenting

Logo grid for the original Web 1
University websites, etc.
(things you could read from, but not write to)
“Read only”
Web 1.0 Applications

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Users visit a
company’s website or
application, and send
data to their
infrastructure

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The company will then
store that data in their
database

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When a user visits that
company’s website, or
application, information
is sent back from the
database

“Read & write to the web”

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Both the web1 and web2
database’s are
“centralized” because
the company operating
it can do whatever it
wants…

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It can send back false
information

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It can prevent specific
users from accessing
their services

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The company could
even, simply go out of
business…

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In reality, a lot of the companies offering
websites and applications don’t actually
maintain their own databases…
They use the “cloud”

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There are only a handful of
cloud providers

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Which is an even
bigger point of
centralization…

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With potentially as
bad consequences

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Or even worse…

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There are things you can’t, or shouldn’t build on centralized infrastructure

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- Currencies
- Digital assets (e.g. art, concert tickets, music)
- Identity rights
- Public goods
- Reputation systems
- Lots of others!

“Web 3.0 is a broad movement and group of associated technologies aiming
to make the web and internet more decentralized, verifiable, and secure.
Creator of IPFS - Juan Bennet (2018)

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Users or companies can run a full
copy of the infrastructure locally,
and submit their transactions to it

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They use a consensus
algorithm to determine which
transactions get included, in
which order
CONSENSUS CONSENSUS

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Types of consensus algorithms
Proof-of-Work
(PoW)
Proof-of-Stake
(PoS)
Delegated-Proof-of-Stake
(DPoS)
Hashgraph

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Assuming the algorithm is secure,
all participants should reach the
same data in it’s infrastructure
CONSENSUS CONSENSUS

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If one of the participants goes out of business, or
attempts to maliciously alter the data, the consensus
algorithm’s rules prevent it from affecting others
CONSENSUS

“Read, write, & trust the content on the web”

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Because all participants share the same data
in their infrastructure, we can think of this as a
decentralized database - or a “public ledger”
that anyone can read from and write to
CONSENSUS CONSENSUS

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©2020 Hedera Hashgraph, LLC.  
All rights reserved.
A third generation public distributed ledger
• Cryptocurrency transactions. For Hedera, range shown for transactions not requiring a transaction record, but can receive a transaction receipt.
• Avg. Bitcoin tx fee from 9/26/18 - 3/26/19 from https://bitcoinfees.info/
• Avg. Ethereum tx fee from 9/26/18 - 3/26/19 from https://blockchair.com/ethereum/charts/average-transaction-fee-usd
TRANSACTIONS
PER SECOND
10-60
MINUTES
Bitcoin Blockchain
1ST GENERATION
$0.20
USD
3+
TPS
Ethereum Blockchain
2ND GENERATION
10-20
SECONDS
$0.13
USD
12+
TPS
3RD GENERATION
3-5
SECONDS
(W/ FINALITY)
$0.0001
USD
10,000+
TPS
AVERAGE 
TRANSACTION  
FEE
AVERAGE
TRANSACTION
CONFIRMATION

Hedera is
owned and
operated by the
world’s leading
enterprises.
hedera.com All trademarks and company names are the property of their respective owners. All rights in the Deutsche Telekom mark are protected by
Deutsche Telekom AG. All rights reserved. Hedera uses the third party marks with permission

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39
0 225,000,000 450,000,000 675,000,000 900,000,000
ENTERPRISE GRADE PERFORMANCE
Daily transaction potential - single shard, on-ledger
Ethereum
1,296,000 txs
Ripple
129,600,000 txs
Bitcoin
432,000 txs
Hedera
864,000,000txs

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Do you want a better internet?

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Registration for Hedera20 has begun!
Details -
- Location: Entirely online
- Dates: May 1 - June 12th
- Team size: 1-5 people
Challenges / prizes -
- Grand Prize: $20,000 in
- Second Prize: $10,000 in
- Third Prize: $5,000 in
Learn more & sign up at Hedera20.com

Hedera Hashgraph - Back to the Basics

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