Hedera Hashgraph (HBAR) vs. Traditional Blockchains: What’s the Difference?

Hedera Hashgraph is a leading crypto network being utilized by institutions, big businesses, web3 developers, and the average cryptocurrency trader or investor.

Hedera (HBAR) is often grouped with Blockchain technology; they are similar, but they operate differently. Let’s delve into the differences. 

Traditional Blockchain Technology 

In simple terms, blockchain technology operates like a transparent, decentralized digital diary that is unchangeable, stored, and records transactions across many computers. 

In a Blockchain, each transaction is encrypted and linked to the previous block. The transactions are visible to everyone on the network, which ensures accountability. 

However, blockchains and how they process transactions can be slow and expensive when many people use the network.

Hedera: Hashgraph Technology

Hedera Hashgraph has similar functionalities to blockchain, a decentralized technology. It secures transactions using cryptography, but instead of using blocks, it uses hashgraph technology – Directed Acyclic Graph (DAG) (data structures used to represent relationships between objects).

The DAG allows parallel processing and employs a gossip-about-gossip protocol, which provides information to reach across the network, sharing data with nodes and virtual voting. This process operates faster than blockchain and has lower transaction fees.  

Hedera Hashgraph Governing Council 

Another key difference between Hedera Hashgraph and its competitors is its Governing Council, which provides centralized authority.

The Council provides an extra layer of trust and transparency and appeals to regulated sectors such as healthcare and banking, reassuring them that the network meets legal regulations and global standards. 

The council has a maximum of 39 seats. As of May 2025, 9 seats remain open. They plan to fill the remaining seats, but no confirmed timeline exists. Notable members include: Avery Dennison, BitGo, COFRA, Dentons, DLA Piper, EDF, Hitachi, IIT Madras, LG Electronics.

The HBAR Token

The native cryptocurrency behind Hedera is HBAR, and it plays a crucial role in the network’s ecosystem. Hbar has a supply of 50 billion tokens, which creates scarcity over time and could contribute to long-term price action.

HBAR helps secure the network through staking mechanisms. HBAR holders are expected to play a role in governance decisions over time. 

Different Paths in Decentralized Tech 

Hedera Hashgraph surpasses traditional blockchains regarding energy efficiency, speed, and the presence of a governing council for additional oversight.

While conventional blockchains are open and widely adopted, both technologies support decentralized systems but have distinct advantages and disadvantages depending on the specific use case. Either way, Hedera Hashgraph has a bright future ahead.