Ethereum Vs. Hyperledger

2022-03-18, 04:15

[TL;DR]

Developers are leveraging blockchain technology to develop different apps.

Ethereum and Hyperledger are some of the blockchain platforms for exchange and transaction.

Ethereum comes second to Bitcoin in the digital asset market cap.

Hyperledger facilitates collaboration between businesses using distributed ledger technology (DLT).

Both Ethereum and Hyperledger are digital platforms powered by blockchain technology.

The purpose of developing Hyperledger is different from the purpose of developing Ethereum.

Other differences between both blockchain applications are the operation mechanism and accessibility.

Some similarities include their programming language, nodes, mining processes, etc.

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Blockchain technology continues to expand and attract developers day by day. Whatever industry you find yourself in, you can continually develop an application that suits your operations and provides maximum security.

Ethereum and Hyperledger are some of the blockchain apps from different developers.

While Ethereum is decentralized and allows multiple people to mine using their nodes, Hyperledger is centralized and controlled by a few.

Without further ado, let's dive into the meaning of both apps, their operation, differences, and similarities that exist between Ethereum and Hyperledger.

What is Ethereum?

Ethereum is a decentralized and open-source blockchain platform. This blockchain platform runs on Ethereum virtual machine, a virtual network.

Ethereum allows you to make transactions and exchange the Ether token for other valuables on the blockchain network.

Ether (ETH) is the cryptocurrency or trading unit of ethereum. Every transaction you do with this token attracts a gas fee.

Ethereum comes second after Bitcoin in market caps in the crypto market. It has a market price of almost $3,000 and a market dominance of 18.44%.

What is Hyperledger?

Hyperledger is another blockchain application hosted and developed by Linux Foundation.

Hyperledger is quite different from other blockchain platforms.

It has a modular architecture that functions as the plug-and-play framework. Hyperledger allows enterprises to customize blockchain applications for various purposes.

Enterprises in finance, Information Technology, manufacturing, and a host of others use the Hyperledger to collaborate and develop blockchain applications that suit their business needs.

While both ethereum and Hyperledger are blockchain platforms that allow you to develop other applications and power them via blockchain technology, they have distinct features.

It is pertinent to examine these core differences to better understand how the two applications run on the blockchain network.

Differences between Ethereum and Hyperledger

We shall highlight the differences that exist between Ethereum and Hyperledger below:

Purpose of Development
When developers set out to launch an application, they have the purpose at the forefront. The objective will guide the developers on what to add and improve.

The purpose of developing an application entails using such an application, including its functions and features.

In the case of these two blockchain applications, they both have a distinct purpose.

The purpose of the development of ethereum is to run smart contracts on ethereum virtual machines (EVM) and mass consumption of decentralized applications (DApps).

Hyperledger, on the other hand, was developed to facilitate and encourage collaboration between businesses using distributed ledger technology (DLT).

While Ethereum is developed to serve B2C businesses and create decentralized applications, Hyperledger is designed to help B2B businesses and create cross-industry applications.

Confidentiality and accessibility
Some applications are open source and operate a public network, and Ethereum falls under this kind of blockchain application.

All transactions on ethereum are transparent, and you do not need permission to check how the ETH is faring on the blockchain network.

The entire ethereum transaction on the blockchain network can be accessible as long as you are connected to the internet.

Hyperledger on the underhand is highly confidential and secured. All the transactions involving Hyperledger on the blockchain network are restricted.

You need to be granted access by the individuals and organizations that have the certificate of authorization before you can see the transactions.

Operation and proof mechanism
Those familiar with the cryptocurrency industry know that platforms such as Ethereum run on the proof of work mechanism because it is a decentralized network.

The Proof of Work (POW) mechanism is also called the consensus mechanism. The participating nodes must reach a consensus and agree before a transaction is confirmed on the blockchain.

As for Hyperledger, it does not need any operation mechanism to confirm a transaction.

Most transactions on Hyperledger are between the participating nodes and do not involve a third party. So once they reach a mutual agreement, no third party can have access.

Having examined some of the differences between Hyperledger and ethereum, it is essential to identify some similarities.

Similarities Between Ethereum and Hyperledger

These are some similarities that exist between Ethereum and Hyperledger:

Programming language
The programming language is the set of codes and instructions that runs the application.

Both Ethereum and Hyperledger use the Java_script_ and Golang programming language.

Ethereum uses Java_script_ and Golang for developing applications; likewise, Hyperledger uses the same application to build its chain code.

However, ethereum uses solidity to write its smart contract. It also uses python.

Blockchain powdered apps
Both Hyperledger and ethereum are blockchain platforms, and you can make transactions and use both applications for exchange on the blockchain.

Conclusion

The blockchain network has continued developing and providing different platforms to suit every business's needs and operations.

The applications available on the blockchain have high-level security and encryption protocols, and these qualities have made them stand out online.

While Ethereum and Hyperledger are both applications on the blockchain, they have unique functions and purposes.

The differences and similarities highlighted above will give you robust knowledge of how the two applications work. It is left to you to identify the one that suits your needs.

Author: Valentine A., Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.