As the world shifts towards cryptocurrency, knowing the terminology used in the digital currency space is vital if you intend to invest in it.
During your investment research, you will encounter terms such as Holochain, blockchain, and web 3.0.
This post highlights Holochain and explains whether it is blockchain or web 3.0. Keep reading to learn more.
Blockchain vs. Holochain: Comparative Analysis
What is Blockchain?
A blockchain is a way of storing information in a tamper-proof way without relying on a central authority with special access.
Under the hood, instead of one centralized server, there’s a network of independent computers (aka nodes) at work. They keep identical copies of the information and coordinate using a consensus algorithm. The most famous consensus mechanisms are proof-of-work and proof-of-stake.
A blockchain can store any information, including financial transactions, medical records, social media posts. But once a piece of information is recorded, it can’t be deleted or modified.
Facebook can ban any user or delete any post that doesn’t follow their guidelines because they own all the servers. But a social media app on the blockchain wouldn’t have the tools for this type of censorship.
Blockchains have an inherent problem, though. As the network grows, keeping identical copies of the database becomes more complex and time-consuming.
This conundrum is known as the scalability issue, and Holochain aims to solve it.
What is Holochain?
Holochain is not blockchain!
According to the Holochain Foundation, it’s a framework for building distributed peer-to-peer applications that takes an agent-centric approach.
Let’s unpack what that means.
It’s a framework
Developers can use Holochain to create any application from social media to banking and games. These applications run on the blockchain instead of running on servers owned by a company.
To overcome the scalability problem, Holochain takes a radically different approach: it doesn’t force consensus on all nodes. Instead, each node (agent) is free to maintain their own database regardless of the data everyone else is keeping.
How would Twitter work if it were built using Holochain?
Suppose Alice tweets about her wonderful new shoes. Because Bob and Charlie follow her, they receive a copy of the tweet and store it in their database. But no one else updates their records because no one else follows Alice.
In a regular blockchain app, all the users would be forced to update their records even if they didn’t know Alice.
So it’s easy to see how Holochain eliminates unnecessary broadcasts.
Now, what happens if a node in a Holochain app goes offline? Will its data be inaccessible?
Holochain uses a Distributed Hash Table (DHT) to prevent that. Essentially, multiple nodes maintain mirror copies of another node’s database, and the DHT coordinates who keeps what.
This way, system integrity is preserved regardless of whether one node is online or not.
In a peer-to-peer network, computers can directly communicate with each other without going through a third-party. In other words, there’s no central point with special access and privileges, so the nodes are essentially “peers.”
Is Holochain Better Than Blockchain?
Although their names sound similar, Holochain and blockchain are different concepts. So, one can’t be better than the other. Still, the two aren’t completely unrelated.
A blockchain is a way of storing information on multiple independent servers such that no single organization or company can manipulate or control it.
On the other hand, holochain is a framework for building applications on the blockchain, but it also improves its inherent scalability issue.
Is Holochain Web 3.0?
It’s not easy to define Web 3.0 as it’s a few years from being fully developed. However, the general consensus is that it’ll use blockchain technology.
Therefore, Holochain is one of the many projects that will eventually form Web 3.0.
Holochain allows for user autonomy, which is the same case with Web 3.0. Data in Web 3.0 is decentralized instead of storing it in centralized repositories.
Learn more: Are Facebook and Google Web 3.0?
What Is Web 3.0 and Does It Exist?
Web 3.0 refers to the third generation of the internet that focuses on decentralizing the virtual world by allowing web users to control how their data is used.
This internet technology is in its formative stages but it does exist and is expected to boost content accessibility and data transparency by relying on blockchain technology.
Read more about a Web 3.0 browser called Brave.
Why Is Holochain Rising?
The popularity of Holochain has been on a the rise because it provides a valuable framework for developing distributed applications. Plus, it mitigates the inherent scalability issue in blockchains.
Is Holochain On Coinbase?
At the time of writing, Holochain’s token (HOT) is not supported by Coinbase. However, you can still buy it from this secure online cryptocurrency platform.
Follow these steps to buy Holochain on Coinbase:
- Download the Coinbase Wallet on your Smartphone
- Choose a Username for your Coinbase Wallet
- Store your recovery phrase securely
- Check Ethereum network fees
- Buy and transfer Ethereum to your Coinbase Wallet
- Use your Ethereum balance to buy Holochain in the trade tab