Over the past year, Distributed Ledger Technology (DLT) based blockchain has enthused a lot of developers and companies across multiple production activities. Hyperledger and Ethereum are two of the leading platforms of the blockchain with significant differences in their use cases and applications. Industries looking for Blockchain solutions have to carefully study as to which platform better suits their needs.
Currently, Ethereum, a public permissioned blockchain, is more mature with cryptocurrency at its core. Whereas, Hyperledger is picking its heat as demand for private permission-less enterprise blockchains is rising.
Compare Hyperledger Fabric to Ethereum over a wide range of parameters and decide what best suits your needs.
Ethereum Vs Hyperledger Fabric
|Definition||open-source development project for enterprises’ personalized blockchain||world’s second-largest cryptocurrency|
|Governance||Linux Foundation||Ethereum developers/EEA|
|Type||private and permissioned||public and permission-less|
|User Participation, Confidentiality, and Nature of transactions||all the members have to log in with the help of a valid membership service provider; Confidential transactions||anyone can access, interact, build & deploy dApps; transparent transactions|
|Description of Platform||modular||generic|
|Consensus||no specific consensus mechanism; Users create their own consensus algorithms due to the pluggable nature of the architecture(Kafka/Zab (CFT with trusted leader).
Raft (CFT with trusted leader)
|uses Proof Of Work consensus mechanism; miner gets to add a small block of transactions to the ledger(mining a block) and is given a small cryptocurrency award for their work|
|Transaction Consensus||Execute -> Order -> Validate||Order -> Execute/Validate|
|Transaction Cost||there are no transaction fees to be paid||a transaction fee must be paid using the gas approach|
|Cryptography||pluggable (ECDSA with secp256r1 and secp384r1 built-in)||secp256k1|
|Tokens||no in-built cryptocurrency/token||Ether(ETH) is the designated cryptocurrency|
|Tokenization of Assets||possible with a custom solution||many token standards: ERC20/ERC721/ERC777 etc.|
|Smart-contract language||chaincode can be written in Go, Java, Node.js||written in Solidity/Serpent programming language and they run in a specialized environment, known as the Ethereum Virtual Machine (EVM)|
|Code visibility||counterparties +
|Smart Contract Lifecycle||requires an elaborate process to deploy/change. Stored off-chain||immutable. Easy to deploy. Stored on-chain|
|Smart Contract Upgrade||replacing off-chain code via administrative procedure and upgrade transactions||programming patterns to extend/migrate code & data.|
|Multi-chains||native feature (channels) with shared peer runtime, and shared orderer. Built-in governance for creating side-chains with isolated state||each chain is unique and requires separate node runtimes (min or 3 or 4 depending on consensus).|
|State||Key-Value Database||Account Data|
|Accounts and Identity||transactions have no designated recipients; smart contract updates the ledger when a new transaction happens||every Ethereum transaction is sent from one account to another account – sending account is Externally Owned Account (EOA) and receiving account may be either an EOA or a Contract Account|
|Application Responsibility||coordinating directly with all other participants to obtain an endorsement, managing optimistic concurrency locking on state, signature, and submission||sending signed transactions to one node in the network|
|Partners||Accenture, Airbus, American Express, Cisco, Daimler, J.P. Morgan, Intel, IBM, SAP, Baidu, etc.||IC3, Microsoft, Shell, ING, Accenture, J.P. Morgan, Consensys, Intel, Santander, Credit Suisse, CME Group etc.|
|Community of Contributors||Go-Ethereum: 429
|Throughput||close to 3,500 tps||approximately 200 tps|
|Scalability||Fast as it has fewer nodes in order to increase efficiency towards computing data massively||Medium due to on-chain governance between nodes|
|Usability||ideal for B2B transactions||ideal for B2C transactions|
|Industry focus||enterprises looking for industry-specific vertical applications||developing decentralized applications for public consumption|
Demand for Blockchain certified & skilled professionals are also increasing steadily. It’s important to look at these differences when you start to solve a problem to check which platform best suits your needs.