Ethereum vs Hyperledger – What’s the Difference?
Hyperledger is typically used for a B2B business, while Ethereum is more suited for a B2C business. Check out the Ethereum vs. Hyperledger blockchain...
Hyperledger is typically used for a B2B business, while Ethereum is more suited for a B2C business. Check out the Ethereum vs. Hyperledger blockchain...
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If you’re an aspiring blockchain developer or an enthusiast in the web 3.0 space, chances are you already know about the two major blockchain platforms or networks that enable you to create applications – Ethereum and Hyperledger. If you’re wondering which solution is more suitable for your use case, or just want to know the difference between Ethereum and Hyperledger, this detailed guide will tell you all you need to know on the topic – Ethereum vs Hyperledger. Let’s start with a basic introduction of the two platforms, for the benefit of the uninitiated. And then we’ll move forward to explore the differences between the two, compare them on the basis of a number of sub points, and explore their use cases, before concluding our article.
Ethereum is one of the most famous blockchain networks, with ether (the crypto fueling the network) being the second most popular cryptocurrency after Bitcoin. Ethereum is a decentralized, public blockchain network that was created to enable smart contracts.
These smart contracts are scripts that, when run, would perform a designated action or calculation, and self-execute after specific conditions are met. These smart contracts enable decentralized applications, also called DApps, to be built.
Vitalik Buterin, Ethereum’s creator, came up with the notion of the network as an improvement on Bitcoin’s initial idea. He wanted the Ethereum blockchain to support features and applications other than merely the issuance of cryptocurrency. Ethereum’s main advantage is its ability to easily deploy smart contracts – actual bits of code that are executed automatically on the Ethereum network.
Hyperledger, on the other hand, is an open-source platform that enables people to build solutions using distributed ledger technology with a focus on confidentiality, resiliency, and flexibility, built with scale in mind. Hyperledger, unlike Ethereum, is not community-driven and is managed by the Linux Foundation. It is not a tool and neither a platform like Ethereum. It’s a mixed concept with many platforms for developing enterprise solutions.
Hyperledger enables developers to create and develop enterprise-grade solutions and is primarily used from a B2B standpoint. It recognizes that every business/industry is unique, and the way their applications are developed should be unique to their visions.
Since Ethereum is a public network, with a generalized protocol, it simply cannot suit all business needs, especially ones that require confidentiality and scalability. Hyperledger, however, enables businesses to create personalized blockchains that tend to the needs of different businesses.
Hyperledger Fabric is an open-source platform, which means that it is available to anyone who wants to use it. This allows developers to easily access the platform’s codebase and make modifications as needed. Additionally, an open-source platform encourages community participation and collaboration, leading to the development of new features and improvements.
As a result, the platform benefits from a wide range of contributions and expertise, making it more robust and reliable. Furthermore, the open-source nature of Hyperledger Fabric also enables organizations to build their own solutions using the platform without any licensing fees or vendor lock-in. This makes it an attractive option for businesses, especially for those that have limited resources and budget.
Moreover, open-source also allows for a transparent and inclusive development process, where users can easily identify bugs and propose solutions, which helps to increase security and performance of the platform.
Hyperledger Fabric is designed to be highly adaptable and can be used in a wide range of industries. This includes supply chain management, healthcare, finance, and more. Its flexibility makes it a great option for companies looking to implement a blockchain solution that can be tailored to their specific needs.
Additionally, Hyperledger Fabric is a permissioned blockchain platform, which means that it allows for a high degree of control over access and permissions to the network. This makes it well-suited for use cases where privacy and security are a concern.
As a result, businesses can deploy Hyperledger Fabric for internal use cases, such as supply chain management, data privacy, digital identity and more without exposing the sensitive data to public networks.
Hyperledger Fabric is built on a robust codebase that has been thoroughly tested and reviewed. This ensures that the platform is reliable and can handle large-scale transactions. Plus, the Hyperledger community is dedicated to constantly improving the codebase, making sure that it remains up-to-date with the latest developments in blockchain technology.
As a result, Hyperledger Fabric is known for its high-performance, stability and security. The codebase is also well-documented, making it easy for developers to understand and work with.
Hyperledger Fabric also has a robust testing and validation process that ensures that the code is thoroughly tested and any bugs are identified and fixed before deployment.
Hyperledger Fabric is designed to be highly efficient, making it well-suited for large-scale transactions. The platform uses a modular architecture, which allows for the separation of different components, such as consensus and smart contract execution. This leads to a more efficient and scalable solution, as different components can be optimized independently.
Hyperledger Fabric uses a unique consensus mechanism called “pluggable consensus”, which allows for different consensus algorithms to be used on a per-application basis, further increasing the platform’s efficiency. This means that businesses can choose the consensus mechanism that best suits their needs, whether it’s a traditional algorithm like PBFT or a newer one like Raft, which can help to increase the performance and scalability of the network.
Hyperledger Fabric also uses container technology, which allows for easy deployment and scaling of different network components, making it more efficient and cost-effective.
Hyperledger Fabric’s modular design allows for a high degree of flexibility and customization. This makes it easy to add new features and functionality to the platform, as well as integrate it with existing systems.
The modular design allows for the easy deployment of different components, such as consensus algorithms, on a per-application basis. This allows organizations to tailor their blockchain solution to their specific needs, whether that’s for a small, internal use case or a large-scale, public network.
The modular design also allows for easy scalability, as different components can be added or removed as needed. This ensures that the platform can handle large volumes of transactions without sacrificing performance or security.
Furthermore, Hyperledger Fabric also includes a plug-and-play architecture, which allows for the easy integration of various blockchain technologies, such as smart contracts and digital identities. This gives organizations the flexibility to build custom blockchain solutions that are tailored to their specific use cases, and make the most of the Hyperledger Fabric’s capabilities.
One of the main benefits of Ethereum is its immutability. This means that once a transaction is recorded on the Ethereum blockchain, it cannot be altered or deleted. This is achieved through the use of advanced cryptography and consensus mechanisms, which ensure that all transactions are validated by multiple network participants. This makes it nearly impossible for any single entity to corrupt the network or gain control of it. Additionally, the immutability of the Ethereum blockchain also provides a tamper-proof record of all transactions, which can be used for a wide range of use cases, such as supply chain management, digital identities, and more.
Ethereum’s decentralized network is composed of multiple nodes that work together to validate and record transactions. This means that even if one node goes offline, the network will continue to operate and transactions will still be processed. Additionally, the Ethereum Virtual Machine (EVM) allows for the execution of smart contracts even when the network is under heavy load, ensuring that the platform is always available and responsive. This makes Ethereum a reliable and resilient platform for decentralized applications and transactions. Furthermore, the use of smart contracts also helps to ensure that the network is corruption-proof, as all contracts are executed automatically and cannot be altered by any single entity.
Ethereum’s blockchain is based on advanced cryptography and consensus mechanisms, which makes it highly secure. The platform utilizes a consensus algorithm called Proof of Work (PoW), which ensures that all transactions and smart contract executions are validated by multiple network participants. This makes it nearly impossible for any single entity to corrupt the network or gain control of it. Additionally, Ethereum’s smart contract functionality allows for the creation of secure and self-executing contracts, which can be used to enforce complex business logic and automatically enforce contract terms without the need for a third party intermediary. Furthermore, Ethereum also includes built-in security features such as private key encryption and secure key storage, which helps to protect users’ digital assets and identities.
Ethereum’s decentralized network is composed of multiple nodes that work together to validate and record transactions. This means that even if one node goes offline, the network will continue to operate and transactions will still be processed.
Additionally, the Ethereum Virtual Machine (EVM) allows for the execution of smart contracts even when the network is under heavy load, ensuring that the platform is always available and responsive. This makes Ethereum a reliable and resilient platform for decentralized applications and transactions.
Moreover, Ethereum also has a built-in mechanism called “gas” which ensures that the network is not congested by spam transactions and Dapps, this helps to keep the network running smoothly and efficiently, providing a high level of uptime for users and developers.
When it comes to Ethereum vs Hyperledger Fabric, albeit both being platforms/tools that allow developers to create applications on the blockchain, that is where the similarities stop. The Hyperledger vs Ethereum decision really boils down to your use case. To help make your decision simpler, here is a detailed list of differences between the two platforms, and a summarized table that will act as a quick cheat sheet for your reference.
| Feature | Ethereum | Hyperledger |
| Purpose | Running smart contracts on a public, permissionless network, enabling DApps | Enabling businesses to accelerate collaborations within industries, and enabling the creation of B2B applications |
| Confidentiality | Ethereum is not confidential | Hyperledger is permissioned and highly confidential |
| Governance | Run by Ethereum Foundation | Run by the Linux Foundation |
| Participation | Just about anyone can participate | Only authorized individuals can participate |
| Smart Contracts | Yes | Yes, called chaincodes |
| Programming Languages | Solidity primarily | Golang, JavaScript, Java |
| Consensus Mechanism | Proof-of-stake | None |
| Cryptocurrency | Ether / ETH | Not required |
| Speed of Transactions | Comparatively slower than Hyperledger | Faster than Ethereum |
Ethereum was created with the only intention of running and executing smart contracts on the Ethereum Virtual Machine. Hyperledger, on the other hand, was created with the intention of accelerating collaboration within industries, to develop high-performance blockchains, and providing enterprises with the privacy that they might need. Hyperledger is a permissioned platform, or to say it’s not for the public eye, as opposed to Ethereum.
Hyperledger is typically used for a B2B business, while Ethereum is more suited for a B2C business. More on this in the subsequent sections.
A key point to note when comparing Hyperledger Fabric vs Ethereum is the aspect of confidentiality. Ethereum, as we’ve mentioned earlier, is a public network. Every single transaction is transparent, and as long as you have a valid internet connection, you can view the transactions, even if you haven’t used Ethereum before.
The same is not the case with Hyperledger. It is a limited access/permissioned blockchain network. The distributed ledger created using Hyperledger is highly confidential and secure. Only chosen individuals can view all transactions of the network.
While strictly not a major data point that will help you make the decision between Ethereum vs Hyperledger – it is crucial that you know who governs the respective networks.
Ethereum, on the one hand, is governed by a team of Ethereum developers, with Vitalik Buterin heading the team.
Hyperledger on the other hand is governed by the Linux Foundation. IBM, the other major contributor, collaborated with the Linux foundation to come up with this revolutionary framework. Hyperledger can be thought of as a massive collaboration that became a huge success. Owing to the collaboration, Hyperledger is also known as IBM blockchain.
Since Ethereum is a permissionless network, just about anyone with access to the internet can access the network. Anyone can be a node, can participate in the governance, and can download the software.
Hyperledger, as mentioned earlier, is a permissioned network. It maintains strict control over who can and cannot participate. Only authorized members are allowed to use the platform and its tools, enabling high levels of security, , and privacy, which is needed for it to be suitable for enterprise use.
Ethereum, obviously, came up with the concept of the smart contract. Once specific conditions are met, it will automatically trigger a predefined program. The smart contracts feature on Ethereum is very efficient, and it gained popularity in a very short time owing to the same. Would it surprise you to hear that this doesn’t give Ethereum the edge in the Ethereum vs Hyperledger debate?Hyperledger has its own version of smart contracts, called chaincode, that allows specifically chosen members of the organization to run codes very similar to a smart contract. Basically, it’s a business spin version of the technology, and is slightly different when compared to the Ethereum smart contracts. The main difference is the chosen programming language that fuels the two.
While Solidity is the single most popular language on the Ethereum network, it also supports other high-level languages like Python, Javascript, and Golang. Solidity is a contract-oriented programming language that was specifically designed for the Ethereum platform. It allows developers to write smart contracts, which are self-executing programs that are stored on the Ethereum blockchain.
Hyperledger, on the other hand, primarily utilizes Golang to write chaincodes, Java and Javascript can also be used within the Hyperledger network, but to a very limited extent. Go is the most popular choice among developers due to its simplicity, performance, and security features.
Since just about anyone can participate in the Ethereum network, it becomes important for the platform to use a consensus mechanism to validate the transactions. The Ethereum network used to depend on the Proof-of-work consensus mechanism but recently completed the transition to the much more energy-efficient Proof-of-Stake consensus mechanism through a much-hyped event known as The Merge.
Since Hyperledger is a permissioned network, it does not need any consensus mechanism to validate the transactions. As long as two parties agree to a certain transaction, no other person can intervene in that specific transaction.
Ethereum uses ETH as the native cryptocurrency to reward network validators and other on-chain functions. As a reward for providing computational power, network participants are given small amounts of ETH. Additionally, Ethereum also uses ETH as a means of transaction fees, which are paid by users to have their transactions processed by the network. This is used as an incentive mechanism to ensure that the network stays secure and to compensate the validators for their computational work.
Hyperledger, on the other hand, has no such need for a cryptocurrency to fuel the network.
With a PoW system, it took about 13-14 seconds to mine every Ethereum block. With the new PoS system, the block time will be marginally faster, about 12 seconds. At present, Ethereum stands at around 30 transactions per second. Hyperledger, on the other hand, can handle somewhere around 2000 transactions per second, making this exponentially faster than the Ethereum network.
At this point, if you’re still scratching your head deciding between Ethereum vs Hyperledger, here’s a quick guide.
You should use Ethereum if your application is either
Ethereum is well-suited for applications that are open to the public, such as decentralized exchanges, prediction markets, and other decentralized applications (dApps). Because of its open-source nature, anyone can build on top of Ethereum and create new dApps, making it highly suitable for public-facing applications. What’s more, Ethereum brings excellent smart contract functionality for efficient automation. So if you’re looking to create a decentralized app for your clients, Ethereum smart contracts are probably the best option. This way, anyone can get on the network and operate a node, and each node will hold a copy of the blockchain records.
Ethereum is well-suited for open-source projects, where the involvement of the community is highly necessary. As mentioned before, with Ethereum, any user can enter with a node without waiting for permission from any authority, and can own a copy of the blockchain for the utmost transparency. Ethereum based applications do not need any opacity, and anyone can join in as a developer as well. The Ethereum community is already quite large and active,which makes it an ideal choice for open-source projects that require a large and active community to thrive.
You should choose Hyperledger as your choice between the Hyperledger Fabric vs Ethereum in case
Hyperledger is well-suited for private, or B2B oriented applications, where the need for privacy and security is high. Hyperledger allows for the creation of private networks, where only authorized participants can access and transact on the network. Since a business wouldn’t want to keep any confidential information on a public, permissionless blockchain, Hyperledger is definitely the better choice in the Ethereum vs Hyperledger debate for such businesses. The platform is a suitable choice for use cases such as supply chain management, digital identity, and other private blockchain applications.
As an organization, you may be looking to create your very own blockchain algorithm with specifications no other trusted application is giving you. Hyperledger is a very handy blockchain for such use cases. Hyperledger allows organizations to create their own consensus algorithms, membership services, and other components to suit their specific needs. This makes it a suitable choice for organizations that require a high degree of customization and flexibility in their blockchain solutions. For business purposes, this very flexibility of Hyperledger can be an excellent tool indeed.
We do hope this article settled the debate between Ethereum vs Hyperledger once and for all. We have more such informative blogs on our page, why don’t you head on over there to know more about layer 1 blockchains, and the web 3.0 community in general? If you have any queries, hit us on our socials, and we’ll be sure to get back!
Blockchain is a decentralized and distributed ledger technology that allows for the secure and transparent storage of data. It uses cryptography and consensus mechanisms to ensure the integrity and immutability of data, and allows multiple parties to share and access data in a trustless environment.
Hyperledger, on the other hand, is an open-source project that provides a set of tools and frameworks for creating blockchain solutions. It is not a single blockchain, but rather a collection of frameworks and tools that can be used to build various types of blockchain networks.
Hyperledger is focused on building private and permissioned blockchain networks, which means that only authorized parties can access and participate in the network. This makes it suitable for enterprise use cases where privacy and security are a concern.
Hyperledger is different from Ethereum in that it is a platform for building private and permissioned blockchain networks, whereas Ethereum is a public blockchain network.
Hyperledger also provides a set of tools and frameworks for building blockchain solutions, while Ethereum primarily focuses on creating decentralized applications.
Solana, on the other hand, is a high-performance blockchain platform that utilizes a unique consensus mechanism called proof-of-stake, while Hyperledger uses a variety of consensus mechanisms and Ethereum uses proof-of-work. Solana is focused on providing fast and low-cost transactions, while Hyperledger is focused on building private and permissioned networks for enterprise use cases.
Disclaimers: Opinions expressed in this publication are those of the author(s). They do not necessarily purport to reflect the opinions or views of Shardeum Foundation.
About the Author: Anuska is an independent freelance writer freshly exploring web3 and blockchain space. Her articles blend personal exploration with established editorial methods, and she’d love to hear your thoughts in the comments!
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