From Hashgraph to Blockchain

This document describes a technique for projecting a hashgraph onto a blockchain, which is better suited for representing an immutable ordered list of transactions. In this system, the order is governed by the Hashgraph consensus algorithm but the transactions are mapped onto a linear data structure composed of blocks; each block containing an ordered list of transactions, a hash of the previous block, a hash of the resulting application state, and a collection of signatures from the set of validators. This method enables hashgraph-based systems to implement any Inter-Blockchain Communication protocol and integrate with an Internet of Blockchains.


The consumable output of any consensus system is an ordered list of transactions. Developers have been using blockchains to model such lists because they are efficient to work with. A linear data structure composed of batches of transactions, hashed and signed together, easily allowing to verify any transaction, is the right tool for the job. Although the word blockchain is now used in a much broader sense, it originally designated a data structure. Consensus algorithms, public/private networks, cryptocurrencies, etc., are independent concepts.

Hashgraph is a beautiful consensus algorithm based on a homonymous data structure. The hashgraph data structure, however, is not easy to work with when it comes to representing a linear sequence of transactions. It is a Directed Acyclic Graph (DAG) from which the order must be extracted via some complex consensus functions. To verify the consensus index of a given transaction, one has to re-compute the consensus methods on a subset of the hashgraph. On the other hand, blockchains do not need any further processing to extract the ordered list of transactions and simple cryptographic primitives are sufficient to validate blocks.

The “hashgraph vs blockchain” debate is a red herring. Blockchain is just a data structure; the engine is the underlying consensus algorithm. The projection method exposes an easy-to-work-with blockchain powered by the efficient Hashgraph consensus algorithm.


 |   |   |  w53
 |   |   | / |
 |   |  w52  |
 |   | / |   |                                     ^
 |  w51  |   |                                     |
 | / |   |   |                                     |
w50  |   |   |-----------------------  ---------------------------
 |   \   |   |                         - Block 5 | (Block 4 Hash)-
 |   |   \   |                         ---------------------------
 |   |   |  w43                        - E: [w40, w41, w42, w43] -
 |   |   | / |                         ---------------------------
 |   |  w42  |                         - S: [S50, S51, S52, S53] -
 |   | / |   |                         ---------------------------
 |  w41  |   |                                     |
 | / |   |   |                                     |
w40  |   |   |-----------------------  ---------------------------
 |   \   |   |                         - Block 4 | (Block 3 Hash)-
 |   |   \   |                         ---------------------------
 |   |   |  w33                        - E: [w30, w31, w32, w33] -
 |   |   | / |                         ---------------------------
 |   |  w32  |                         - S: [S40, S41, S42, S43] -
 |   | / |   |                         ---------------------------
 |  w31  |   |                                     |
 | / |   |   |                                     |
w30  |   |   |-----------------------  ---------------------------
 |   \   |   |                         - Block 3 | (Block 2 Hash)-
 |   |   \   |                         ---------------------------
 |   |   |  w23                        - E: [w20, w21, w22, w23] -
 |   |   | / |                         ---------------------------
 |   |  w22  |                         - S: [S30, S31, S32, S33] -
 |   | / |   |                         ---------------------------
 |  w21  |   |                                     |
 | / |   |   |                                     |
w20  |   |   |-----------------------  ---------------------------
 |   \   |   |                         - Block 2 | (Block 1 Hash)-
 |   |   \   |                         ---------------------------
 |   |   |  w13                        - E: [w10, w11, w12, w13] -
 |   |   | / |                         ---------------------------
 |   |  w12  |                         - S: [S20, S21, S22, S23] -
 |   | / |   |                         ---------------------------
 |  w11  |   |                                     |
 | / |   |   |                                     |
w10  |   |   |-----------------------  ---------------------------
 |   \   |   |                         - Block 1                 -
 |   |   \   |                         ---------------------------
 |   |   |  e32                        - E: [w00, w01, w02, w03, -
 |   |   | / |                         -     e10, e21, e32]      -
 |   |  e21  |                         ---------------------------
 |   | / |   |                         - S: [S10, S11, S12, S13] -
 |  e10  |   |                         ---------------------------
 | / |   |   |
w00 w01 w02 w03
 0   1   2   3


 E: List of Events contained in Block. Here, we mention Events because it is
 easier to represent than transactions. Blocks would actually contain only
 the transactions of the Events, but that is complicated to represent in this

 Sij: Signature of Block i by validator j

The Hashgraph algorithm always commits Events in batches. Indeed, when the fame of a super-majority of witnesses from a given round is decided, all the Events that are seen by all these famous witnesses (but not from an earlier round) get assigned the same Round Received and sorted according to a deterministic function. At that point, the consensus order of these Events is decided and will not change.

We gather the transactions of all the Events from the same Round Received into blocks. When Events get assigned a Round Received and sorted, we package their transactions (in canonical order) into a block and commit that block to the application. The application returns a hash of the state obtained by applying the block’s transactions sequentially and we append this hash to the block’s body before signing it. Block signatures will be exchanged as part of the regular gossip routine and appended to their corresponding blocks as they are received from other peers if they match the local block. Once a block has collected signatures from at least 1/3 of validators, it is deemed accepted because, by hypothesis, at least one of those signatures originates from an honest peer.

We extend the Event data structure to contain a set of block-signatures by the Event’s creator. Having assigned a RoundReceived to a set of Events and produced a corresponding block, a member will append the block’s signature in the next Event it defines. Hence, block-signatures piggy-back on the regular gossip messages and propagate at the same speed. Upon receiving Events from an other peer, a member will verify their block-signatures against its own version of the blocks; if the signatures match, they are recorded with the block. With this extended gossip routine, nodes simultaneously build up the hashgraph and the corresponding blockchain. It preserves the simplicity of the hashgraph system, which is one of its most valuable features, by not adding new types of messages; it only extends the existing Event data-structure.

By construction, the fame of a round R witness can only be decided by a witness in round R+2 or above. Hence, when a block is created for a Round Received R (block R), the hashgraph already contains Events at round R+2 or more; the signatures for block R, will be gossiped at the same time as Events of round R+2 or more. It follows that the signatures of block R will arrive with a lag of 2 or more consensus rounds.

Block Structure

Block: {
        Index:         int,
        RoundReceived: int,
        PrevBlockHash: []byte,
        BodyHash:      []byte,
        StateHash:     []byte,
        Transactions: [][]byte
    Signatures: map[string][]byte

Blocks contain a Header and a Body. Signatures are based on the Header only; which is enough to verify the entire block because it contains a digital fingerprint of the Body. Since Headers also contain a hash of the previous block, each block signature adds further validation to previous blocks. The Header’s RoundReceived corresponds to the RoundReceived of the hashgraph Events who’s transactions are included in the block; it serves the purpose tying back to the underlying hashgraph. We do not produce a block when all the Events of a Round Received are empty. Hence, two consecutive blocks may have non-consecutive RoundReceived values and we use an additional property to index the blocks. The block Body also contains a hash of the application’s state resulting from applying the block’s transactions sequentially. Counting signatures from one third of validators provides a proof that all honest nodes have not only applied the same transactions in the same order, but also computed the same state.


Dynamic Validator Set

The system described above assumes that the set of validators is fixed; block signatures are always checked against the same list of public keys. In Hashgraph, it is possible to make the set of validators change dynamically. The projection would have to be extended such that block Headers would also contain a Merkle root of the current validator set, thereby providing a simple method of verifying that a signer belongs to the set of validators corresponding to the block it signed.

Inter-Blockchain Communication

Inter-Blockchain Communication (IBC) is about verifying on one chain that a transaction happened on another chain; one blockchain acts as a light-client to another blockchain. It is much simpler to build a light-client for a blockchain than for a hashgraph. In an effort to enable interoperability between blockchains, several initiatives have been proposed to build protocols for IBC like Cosmos, Polkadot and EOS. The projection method allows hashgraph-based systems to integrate with these network architectures.