Holochain is a highly anticipated cryptocurrency that has been termed the “blockchain killer.”
Holochain aspires to transform the way we think about distributed ledger technology, according to the development team (DLT). Several investors have expressed interest in purchasing HOT because of its unusual position.
Holochain is a peer-to-peer (P2P) platform that launched in March 2020. It is an alternative to blockchain technology as we know it. Holochain makes it possible to go from a data-driven blockchain to an agent-centric system.
Each agent keeps a private fork and uses a distributed hash table to store and handle data on the blockchain in a restricted way.
This aids it in addressing scalability concerns that have plagued various blockchain networks. The Holochain platform allows decentralized applications (dapps) to accomplish more with fewer resources than traditional blockchain platforms.
Blockchain technology, which was first introduced by Bitcoin, operates by storing data in cryptographic hashes on a distributed network.
In order to validate transactions and maintain the network’s integrity, each node on the web must keep a full copy of the blockchain. This has been a tremendous strength, but it has also caused problems.
The desire for each node induced the scalability challenges to have a full copy of the network are one of the most hotly debated topics in the growing sector.
It becomes increasingly difficult to validate transactions on the network faster as the volume of data on the network grows. The hefty network fees are a result of the slow latency times.
Holochain solves this problem by eliminating the requirement for each validator node on its network to have a complete copy of the blockchain.
Instead, each validator node has its own node that connects with its own cryptographic key. If a node goes offline, a chain fork emerges without affecting the public chain. There is no effect on the wider network because the platform continues to validate transactions.
This approach also has another significant advantage, which has to do with its environmental impact. The use of the archaic proof-of-work (PoW) consensus method challenged popular cryptocurrencies like Bitcoin and Ethereum.
The mining system has come under fire when Bitcoin’s energy consumption exceeded that of numerous small countries. The system requires miners to compete for block rewards.
Holochain can answer this environmental question. This is because its technique of not needing validator nodes to retain a full copy of the blockchain allows them to validate transactions using only a small portion of their bandwidth.
The Holochain network also does not require any special mining gear. Validating agents can check transactions using the same electricity used in typical computers, which reduces the demand for electricity.