Hereda Hashgraph
Hereda Hashgraph
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Vision
The Hedera Hashgraph Council will provide governance for an
open, fast and fair decentralized public ledger built on the
hashgraph consensus algorithm. Governance will be maintained
by a council of up to 39 known and reputable global organizations,
committed to the support and evolution of a stable, predictable
public ledger infrastructure.
w h i t e pa p e r
2
...

Executive Summary
Distributed ledger technologies (DLT) are disrupting and transforming existing markets in multiple
industries. However, in our opinion there are five fundamental obstacles to overcome before distributed
ledgers can be widely accepted and adopted across every industry and geography. In this paper we will
examine these obstacles, and discuss why Hedera hashgraph is ideally suited to be the world’s first mass-
adopted public distributed ledger, supporting a vast array of applications.
1
P E R FO R M A N C E
- The most compelling use cases require hundreds of thousands of
transactions per second in a single shard (perhaps millions of transactions per second
(tps) in a fully-sharded solution), and many require consensus latency measured in seconds.
These performance metrics are orders of magnitude beyond what current public DLT
platforms can achieve.
2
SECURIT Y
- If public platforms are to facilitate the transfer of trillions of dollars of value,
we hav...

PERFORMANCE
S TA B I L I T Y
GOVERNANCE
SECURITY
R E G U L AT O R Y
COMPLIANCE
What is required to move our industry forward and enable it to
realize its full potential?
A platform that provides a combination of high performance,
strong security, industry-leading governance, and both technical
and legal controls to ensure the stability of the platform. Only
then do we think mainstream markets will trust the platform
enough to adopt public DLT
en masse
.
e x ec u t i v e s u mm a r y
4
...

Introducing Hedera – a governing body and public
hashgraph network designed to address the needs
of mainstream markets.
Hedera will be governed by a council of renowned enterprises and organizations, across multiple
industries and geographies. Its vision is a cyberspace that is trusted, secure, and without the need for
central servers. Its licensing and governance model protects the community by eliminating the risk of
splitting, guaranteeing the integrity of the codebase, and providing open access to the protected core.
All Governing Members will have equal governing rights and each Governing Member (with the exception
of Swirlds, Inc.) is expected to serve a limited term, ensuring that governance is decentralized.2
Hedera is both an organization and distributed ledger platform that resolves the factors that constrain
adoption of public DLT by the mainstream.
1.
P E R FO R M A N C E
- The platform is built on the hashgraph distributed consensus
algorithm, invented by Dr. Leemon Ba...

3.
GOVERNANCE
- Hedera governance is comprised of two parts:
Council Governance
,
used for the management of the business of the council, and
Consensus
used in the Hedera
platform for determining the consensus order of the transactions. The
Council Governance
Model
concerns the election of the Board of Managers of Hedera (Governing Board).
The Governing Board will establish policy for council membership, regulate the network
tokens, and approve changes to the platform codebase. The
Consensus Model
concerns
the process by which the nodes reach a consensus on the order of transactions in
the platform. Our proposed model is designed to prevent consolidation of power over
consensus. It will prevent collusion by a few to attack the system (such as efforts to
counterfeit the cryptocurrency, modify the ledger inappropriately, or influence the
consensus order of transactions).
a.
Council Governance Model:
Hedera will be g...

ii)
Second, Swirlds makes it possible for the Hedera governing body not only
to specify the software changes to be made to network nodes, but also to
ensure precisely when those changes are adopted, and to guarantee that
they are.
When the Hedera governing body releases a software update, all
honest network providers will have their software automatically update,
and all will do so at exactly the same moment in history. Anyone with invalid
software will no longer be able to modify the hashgraph and have the world
accept their version of the hashgraph as legitimate.
Hedera legal controls
ensure the platform will not fork into a competing platform and
cryptocurrency.
iii)
The Hedera codebase will be governed by the council, and will be released
for public review with Version 1.0. It will not be open source, but anyone will
be able to read the source code, recompile it, and verify that it is correct.
No license will be required to use the Hedera platform. No licens...

The hashgraph data structure and consensus algorithm provides a
new platform for distributed consensus. This introduction gives an
overview how hashgraph works, and of some of its properties.
The goal of a distributed consensus algorithm is to allow a community
of users to come to an agreement on the order in which some of
them generated
transactions
, when no single member is trusted
by everyone. In this way, it is a system for generating trust, when
individuals do not already trust each other. Hashgraph achieves this in
a fundamentally new way.
BLOCKCHAIN
HASHGRAPH
A blockchain is like a tree that is continuously pruned as it grows -
this pruning is necessary to keep the branches from growing out of
control. In hashgraph, rather than pruning new growth, it is woven
back into the body.
introduction
9
...

In both blockchain and hashgraph, any member can create a
transaction, which will eventually be put into a container (the “block”),
and will then spread throughout the community. In blockchain, those
containers are intended to form a single, long chain. If two miners
create two blocks at the same time, the community will eventually
choose one to continue, and discard the other one. It’s like a growing
tree that is constantly having all but one of its branches chopped off.
In hashgraph, every container is used, and none are discarded. All the
branches continue to exist forever, and eventually grow back together
into a single whole. This is more efficient.
Furthermore, blockchain fails if the new containers arrive too quickly,
because new branches sprout faster than they can be pruned. That
is why blockchain needs proof-of-work or some other mechanism to
artificially slow down the growth. In hashgraph, nothing is thrown
away. There is no harm in the structure growing quickly. Ever...
Leemon Baird
Leemon Baird CTO & Co-Founder

Mance Harmon
Mance Harmon CEO & Co-founder

Tom Trowbridge
Tom Trowbridge President

Patrick Harding
Patrick Harding Senior VP

John Best
Advisors John Best

Aaron Moore
Advisors Aaron Moore

Dave Asprey
Advisors Dave Asprey

Don Thibeau
Advisors Don Thibeau

David Cohen
Advisors David Cohen

Scott Walker
Advisors Scott Walker

David Cohen
David Cohen
Jordan Fried
Jordan Fried
VP
VICE-PRESIDENT, GLOBAL BUSINESS DEVELOPMENT
Ken Anderson
Ken Anderson
CDA
CHIEF DEVELOPER ADVOCATE
Leemon Baird
Leemon Baird
CTO & Co-Founder
CO-FOUNDER AND CHIEF SCIENTIST
Mance Harmon
Mance Harmon
CEO & Co-founder
CO-FOUNDER AND CEO
Natalie Grunfeld Furman
Natalie Grunfeld Furman
General Councel
GENERAL COUNSEL
Patrick Harding
Patrick Harding
Senior VP
SENIOR VICE-PRESIDENT, PRODUCT
Scott Walker
Scott Walker
Founder and CEO, National Data Corporation
Serial Entrepreneur
Partner Distributed Network Advisors (DNA)
Tom Trowbridge
Tom Trowbridge
President