TI Rating Report - Hedera Hashgraph
TI rating report gives an authoritative and fair rating to all projects.Hedera HashGraph aims to create an open, distributed, and progressively decentralized network. Unlike most blockchain projects, Hedera does not adopt the traditional ‘chain of blocks’ structure (those that uses an encryption algorithm to generate blocks at regular intervals and links them together to form a continuous chain) found in most projects. Instead, the database structure adopted by the Hedera project is designed through a DAG (Directed Acyclic Graph). It connects blocks (termed 'Events' in Hedera) generated by different nodes in the project network to form a distributed hashgraph, using 'Gossip about gossip' and 'Virtual Voting' mechanisms to achieve a general consensus across the entire network.
- The core team has strong technical and management experience.
- Highly innovative consensus mechanism design; theoretically it can solve the TPS bottleneck found in most existing competing projects.
- A strong funding history; the project has raised USD 160 million across three rounds of financing.
- Developer-friendly: the developer code quality is generally sound with no major issues or bugs.
- The project has strong partnerships which include a large number of global leading corporations.
- Currently, the decentralization level of the Hedera project is low with only approximately 10 operational nodes.
- The actual running TPS is low (only 2.6).
- A relatively high threshold needed to qualify as a consensus node.
- The consensus mechanism still lacks large-scale and practical testing.
- The unlock rate for new tokens is quite slow and may result in liquidity risk.
- The project is still immature in terms of development progress and faces fierce market competition. In addition, the project also faces future challenges in the expansion of its ecosystem.
Hedera Hashgraph is a high-quality project compared to most public chain competitors evaluated by TokenInsight. With its unique Hashgraph DLT, the project is designed differently from most typical projects on the current market. Currently, the major challenges for Hedera Hashgraph are to accelerate the level of decentralization that can continue to build out its ecosystem and partners. More specifically, it will need to attract developers to build on its ecosystem and quickly shrink the gap between the promised network performance that it promotes, and the actual performance of the project right now.
In conclusion, TokenInsight gives Hedera Hashgraph a rating of BB, with a positive outlook ahead.
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