In recent years, blockchain technology has become quite trending. A lot of applications are using it to enhance the privacy and ownership of their customers’ data. Some of the commonly known blockchains are Ethereum and Bitcoin. But most of them have scalability issues, as they have not been architected so that they can handle millions of transactions in less time.
Hence to overcome this problem, many computer science specialists and scientists have proposed some solutions. One such proposed solution is Holochain. Do you know what is Holochain? Holochain proposes every node should have its own chain, unlike bitcoin where multiple nodes are validating the single chain. So in short, instead of nodes communicating with each other, the millions of chains would be interacting with each other. In this article, we are going to look at what is Holochain and every term regarding it.
What is Holochain?
Holochain is an open-source technology that allows developers to build microservices that run peer-to-peer applications on the nodes’ system rather than on the central servers. As per the official documentation, It offers a variety of solutions for developers to easily provide the best User experience. Some of the common tools that it offers are :
● Load balancer across all the participants.
● A way to deploy the application code on the participant device and update it regularly.
● Easily manageable permissions for any type of data
● Ability for developers to ensure data integrity and specify the business rules.
● Authentication of Users and Identity Management Solution.
If you are a developer and interested to build an Application using Holochain, then you can use Holochain Suite which offers a variety of software and tools. I hope reading this has made you clear about what is Holochain.
How does Holochain Works?
Holochain uses the special data structure known as the Distributed Hash table. All the transactions are verified and stored in the DHT.
With DHT or Distributed Hash Tables, the Holochain tries to establish a hash chain approach that allows the nodes to verify and validate the transaction. This helps to achieve higher scalability than blockchains. Also, they use a sharding mechanism on DHTs that further reduces the load on any particular node.
Moreover, all the transactions cost quite less as compared to different blockchains that take an almost huge gas fee for doing any activity on Dapps. This is because it does not require any staking or mining. Users can trust the code on any particular node.
What is Holo in Holochain?
Holo aims to bridge the gap between the Holochain and internet world. It allows developers and users to use the Holo Hosting box for hosting their applications. This hosting box runs in the background of the user’s system. This gives opportunities to the user to rent spare storage or any computational power if the system’s storage is not used fully.
For all the users who rent their storage, it gives them HoloFuel as fees which can be used further to use any Holochain Application for hApps.
In order to host files, developers or users can use HoloPorts devices to bridge the HoloChain Applications and the web. Both Holo and HoloPorts are the best combination for distributed computation and peer-to-peer Holochain Apps. Anyone who wants to rent storage space can buy Holoports which is available in three different variants.
What is a HOT coin?
Holo HOT coin Cryptocurrency is a sort of digital currency that is considered to be unique. Because of its security and data volume, the Holo HOT coin currency has a superior market position.
How Holochain is Different from other frameworks – Serverside Frameworks, SQL and NoSQL databases, and Blockchains?
In comparing it with serverside frameworks, Holochain provides a complete framework to build the backend of any type of application. But there are some differences such as :
● Holochain has its own persistence layer for data storage.
● Identities are managed through public-key cryptography, where users need to build their own cases. Hence users do not need to maintain passwords or log in through their emails.
● There is no need to have servers since the backend and frontend code of any application runs on the users’ systems.
● Developers need to handle data validation by implementing special functions known as call-back functions.
Relational Database vs Holochain
Unlike other traditional applications which share a common data store, Holochains have a separate Datastore known as the DHT. Every DHT has a defined schema just like the schema in traditional databases.
Also, data on DHT are stored in quite a flexible way as users have the ability to make data private or public. If any user decides to make Data public then it will be shown to all the users.
Another major difference is that data is stored as an entity instead of a table, that can be accessed through the unique ID.
Serverless or lambda functions vs Holochain
Holochain is similar to serverless or lambda functions in some aspects. For example, you can Use Holochain to deploy your Application without maintaining any servers. Also, the backend code of the application is a stateless function with the ability to read and write data from databases.
Coming to differences, Holochain hosts code on the user’s device rather than the cloud servers in a graph database. When any state change happens, then data would be republished to the public graph database. All the backend code is deployed as a package of functions.
Holochain vs Blockchain
Looking at the core structure of Holochain and blockchain in comparison to DLT reveals a number of distinctions. Although the two have some similarities in terms of purpose, they differ greatly in terms of structure. Surprisingly, Holochain is a futuristic technology that aims to transform the world upside down.
Holochain, like blockchain, aims to allow for safe and transparent transactions among network participants. The information on both systems is cryptographically secure and cannot be tampered with. Both systems also allow users to engage with one another on a peer-to-peer basis. They can engage directly without the need for a central authority in this fashion.
Native Token of Holochain – The Holochain Token.
Back in 2018, the Holochain team launched an ERC20 Holochain token for ICO. The Utility of this token is to redeem the HoloFuel Tokens to pay the gas fee for launching applications on Holochain.
The Holo coin is listed on several exchanges such as Uniswap and Binance and the current market cap is $ 1.2 Billion.
Is Holo Ecosystem Centralised or Decentralised?
Holochain is a fully distributed platform but since it takes a lot of time for users to shift from a centralized to a decentralized system, Holoteam decided to keep the system as Centralised as it can make it easy adoption of the platform.
Holochain is quite a new concept in the world of the Internet and Blockchains that has introduced a special data structure known as DHT or Distributed hash table. This comes with some improvements and solves the problems that most of us Face on the blockchains and existing architectures.