A new system, the Swirlds hashgraph consensus algorithm, is proposed for replicated state machines with guaranteed Byzantine fault tolerance. It achieves fairness, in the sense that it is difficult for an attacker to manipulate which of two transactions will be chosen to be first in the consensus order. It has complete asynchrony, no leaders, no round-robin, no proof-of work, eventual consensus with probability one, and high speed in the absence of faults. It is based on a gossip protocol, in which the participants don’t just gossip about transactions. They gossip about gossip. They jointly build a hashgraph reflecting all of the gossip events. This allows Byzantine agreement to be achieved through virtual voting. Alice does not send Bob a vote over the Internet. Instead, Bob calculates what vote Alice would have sent, based on his knowledge of what Alice knows. This yields fair Byzantine agreement on a total order for all transactions, with very little communication overhead beyond the transactions themselves.

THE SWIRLDS HASHGRAPH CONSENSUS ALGORITHM: FAIR, FAST, BYZANTINE FAULT TOLERANCE