Holochain: new kid on the block

Holochain is a new kid on the block when it comes to solving the problem of scalability. Many people are convinced that it has the potential to make blockchain superfluous. The Holo coin that goes with it is very popular and it is expected that it can become a serious challenger for the top 3.

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How does Holochain work?

Holochain works in many ways the same as blockchain. The most important difference is the way consensus is reached . This is one of the most important parts of a cryptocurrency, because it checks whether everything is going well and safely.

With blockchain , the consensus works in a "global" way . This means that all information is distributed and stored in a distributed manner. In simple Dutch: every participant has a copy of the entire blockchain on his computer.

At Holochain they find this far too difficult and complicated and the consensus works in an "agent-central" way . This means that you do not need to have the entire blockchain stored on your computer, but only your 'own' chain . You can best compare this with a huge river that flows through the mountains (the main chain). This river originated from all kinds of smaller rivers (the participants have their own chains) that supply the river with water. The video below provides a somewhat more detailed and technical explanation.

Holochain benefits

• Possible solution to the problem of scalability.
• Fast and cheap (often free) transactions.
• Potentially infinitely scalable / there is no maximum.
• Already many 'working' products.
• Does not come at the expense of decentrality.

Cons Holochain

• No privacy / anonymity.
• The project is not yet 'finished' / in the test phase.
• It is therefore still unknown whether this is the solution.

Cryptocurrency's that use Holochain:

HOLO (now ERC20 token)

Thank You.