What is Hathor?
Hathor is a transactional consensus platform comprised of an entirely novel architecture, based on concepts from both directed acyclic graph (DAG) and blockchain technologies combined. We solve the problems of scalability and decentralization maintenance among distributed ledger networks by including a chain of mined blocks inside a DAG of transactions. The blockchain ensures security when the number of transactions per second is small, whereas the DAG prevails when the number increases significantly. A highly scalable distributed ledger where transactions can be processed for multiple purposes with no fees will be created through its own network. At the same time, mining rewards in the form of newly generated tokens will enforce a fair distribution of economic and computational resources through decentralization and 99.99% uptime without any form of central coordination. Hathor is the direct result of 7+ years of academic research from its founding members, throughout which they have been stress-testing its assumptions and alpha versions. We see scalability as a significant challenge in cryptocurrencies. IOTA made great strides towards scalability, but its solution does not seem to work when the number of transactions per second is small. Hathor’s architecture lies between the ones from Bitcoin and IOTA and presents a solution to scaling, centralization and spam issues. Thanks to the academic research conducted by Dr. Marcelo Brogliato and published as part of his Ph.D. thesis, we have a detailed analysis of Hathor’s architecture through simulations. The primary result is that it works correctly under any number of transactions per second. The higher the number of transactions per second, the faster new transactions are confirmed.