In most endeavors in life the bar for success is set pretty low and even if you don’t meet the low bar the consequences are negligible.
For example, you can make it through high school answering correctly as little as 70% of the questions right on your exams. If you exercise at least 50% of the days of the week you’ll be in decent shape. If you bake a cake and you have 90% of the ingredients your cake likely won’t turn out well but nothing catastrophic will happen other than not being invited to the next school bake off contest. The point is that life has made accommodations for a ton of mediocrity.
There are other areas of life however that demand high accuracy and have no margin for error. Medicine is one such example. It’s estimated that between the U.S. and Europe there are over 328,000 deaths from misprescribed medication. In other words ninety-nine patients can be given the right prescription and one patient given the wrong prescription and that one patient dies. In aviation if 1% of planes crashed that would be completely unacceptable for the industry. Imagine in the financial industry that the New York Stock Exchange had an error rate of a tiny 1% on all the equity trades on their exchange.
The NYSE trades between two and six billion shares daily. A 1% error rate would equate to 40-120 million errors per day. That would be a disaster for global markets. These examples all show that in certain industries 99% is not enough.
And all of this brings us to today’s conversation about blockchain vs hashgraph. Blockchain methods reach consensus probabilistically not deterministically.
Let’s simplify that sentence in plain English: blockchain transactions are only 99% accurate and as we know 99% is not enough.
One of the big breakthroughs for hashgraph, besides its blazing fast speeds, is that it does reach 100% accuracy and this isn’t just theory it has been mathematically proven. This is why it’s not surprising that global IT consulting giant Gartner predicted that 90% of current enterprise blockchain platforms will need to be replaced within the eighteen months!Sadly, many companies have been sold blockchain solutions without deeply understanding how the technology works.
Billions of dollars have been invested in blockchain and billions of dollars will be lost. Creative destruction is part of the cycle of innovation. We concur with Gartner’s assessment of blockchain, namely that a lot of technology will soon be obsolete.
Our view at Hash Labs is that financial markets are already broken in enough ways without layering over distributed ledgers that are neither scalable nor accurate. The world needs reliable financial systems and we’re excited that the right technology currently exists to deliver on those promises.
It takes vigilance to always be looking over the horizon for technological changes and because Hash Labs believes in meritocracy over mediocracy our commitment is 100%. Why? Because 99% is not enough.