Hashgraph, formerly known as Swirlds Labs, has launched HashSphere—a private, permissioned distributed ledger technology (DLT) network built upon Hedera.
Currently in its beta phase, HashSphere aims to provide enterprises with a scalable and secure DLT solution that aligns with stringent regulatory requirements while ensuring interoperability with public networks.
Bridging the Gap Between Public and Private DLTs
The Hedera public network has garnered acclaim for its high transaction speeds, unparalleled security, and sustainability. However, enterprises operating in regulated sectors often encounter compliance challenges when considering public ledgers, particularly concerning KYC and AML regulations.
HashSphere addresses these concerns by offering a private, permissioned network that restricts access to verified participants, thereby ensuring compliance, privacy, and control. Moreover, it is designed for future interoperability with Hedera’s enterprise-grade public network, effectively delivering the best of both worlds.
Andrew Stakiwicz, Head of Solutions at Hashgraph, mentioned the vision behind HashSphere: “From the start, the vision for Hedera has been to create ‘shared worlds’—interconnected networks where enterprises can leverage the power of DLT without compromising privacy or control. HashSphere brings this vision to life.”
“After more than a year of research and development, our team—comprised of industry experts in finance, technology, and blockchain infrastructure—designed HashSphere to remove the barriers that have historically hindered enterprise adoption,” Andrew said.
Addressing Enterprise DLT Challenges
Traditional private DLT solutions have been plagued by issues such as vendor lock-in, single points of failure, and limited flexibility and scalability. On the other hand, public chain subnets introduce security risks by relying on anonymous node validators with minimal data protections. Layer-two solutions often achieve scalability at the expense of finality and overall security. HashSphere seeks to overcome these challenges by integrating the benefits of Hedera technology with the privacy and control inherent in a private, permissioned network.
Key Benefits of HashSphere
- Interoperability: HashSphere is designed for future-native compatibility between private networks and the Hedera public network, ensuring flexibility and scalability for enterprises as their needs evolve.
- Fully Managed Service: Enterprises can benefit from comprehensive customer support, reduced operational costs, and fully managed nodes, thereby minimizing IT complexity and overhead.
- Scalable and Secure: HashSphere provides a secure, enterprise-grade environment for building and scaling digital assets, tokenization, and AI solutions.
- Data Privacy & Governance: The platform enables enterprises to meet stringent data privacy requirements and establish the necessary governance frameworks to comply with industry regulations and prepare for future decentralization.
- EVM-Compatible Development: Developers can build applications and smart contracts using Solidity and other Ethereum Virtual Machine (EVM) languages, facilitating the seamless deployment of decentralized applications (dApps) from other EVM private networks.
Industry Applications and Early Adoption
HashSphere is tailored to meet the diverse needs of various industries. Asset managers, banks, and payment providers can utilize the platform for secure, low-cost cross-border transactions involving stablecoins. Fintech companies can leverage HashSphere to develop innovative financial products encompassing asset tokenization, AI governance, and automated workflows. Additionally, financial services firms can employ the platform to enable real-time payments, asset tokenization, and post-trade settlement within a secure, private network.
Rob Allen, who leads Future Payments (Web3) strategy at Australian Payments Plus—Australia’s national payments scheme operator and a beta customer of HashSphere—highlighted the platform’s appeal: “We’re exploring the future of digital money where it impacts our members, stakeholders, and regulators.”
“As a Hedera Governing Council member, we are interested in HashSphere primarily for its enhanced privacy and regulatory compliance, while also needing network interoperability for the seamless and transparent interchange of stablecoins between public Hedera and private HashSphere, and other Layer1 protocols,” says Rob.
Integration with Hedera’s Trusted Services
Powered by Hedera technology, HashSphere seamlessly integrates with Hedera’s suite of trusted services, including:
- Token Service: Facilitates the issuance and management of digital assets.
- Consensus Service: Records transactions with trusted timestamps.
- Smart Contract Service: Enables the deployment of EVM-compatible decentralized applications.
Furthermore, HashSphere supports the creation of stablecoins and asset-backed tokens, providing enterprises with a comprehensive toolkit to build and scale their blockchain solutions.
A Strategic Move in the Evolving Blockchain Landscape
The introduction of HashSphere represents a strategic initiative by Hashgraph to cater to enterprises seeking the advantages of DLT while adhering to regulatory compliance and maintaining operational control. By offering a private, permissioned network with the potential for future interoperability with public networks, HashSphere positions itself as a versatile solution in the evolving blockchain landscape.
As enterprises continue to navigate the complexities of digital transformation, solutions like HashSphere that balance innovation with compliance are likely to play an important role in the widespread adoption of blockchain technology across various sectors.
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Image Credits: : Hashgraph