Ethereum vs Hyperledger: Which One Is Ideal For Smart Contracts And Privacy?

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Ethereum vs Hyperledger is a debate topic that continues to elicit strong interest among researchers and developers, given the differences and similarities shared between the two blockchain projects. So what makes the two projects stand out from each other?

Ethereum vs Hyperledger: Projects Description

Ethereum is an open source distributed public blockchain network that provides developers with the necessary tools for creating decentralized apps as well as smart contracts. Developed by Vitalik Buterin, the network is an extension of the original core blockchain concept with a few added features.

Hyperledger, on the other hand, casts itself as an open source development project that seeks to offer better standards and robust solutions to better the blockchain ledger. Hyperledger acts as a software that allows people to come up with personalized blockchains to address unique needs with an enterprise-grade capabilities.

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Ethereum Vs Hyperledger - Goals

Image Credits: Hyperledger

Hyperledger does not come with a specific technology like Ethereum, which is powered by blockchain. Instead, it acts as a banner technology for multiple blockchains as well as DLT technologies used to develop distributed ledgers.

Ethereum vs Hyper ledger: Purpose

Hyperledger and Ethereum differ a great deal when it comes to purpose. Ethereum is notably known for powering smart contracts as well as decentralized applications. Hyperledger, on the other hand, leverages blockchain technology to deliver high degrees of confidentiality, resilience and scalability depending on a business needs.

With a modular architecture, Hyperledger provides a high degree of flexibility when it comes to usage.

Ethereum vs Hyper ledger: Cryptocurrency

Ethereum is powered by Ether which is the network’s native currency. Hyperledger, on the other hand, does not require cryptocurrencies for transactions. A lack of cryptocurrency enables scalable consensus algorithm capable of handling high transaction rates.

Ethereum vs Hyperledger Confidentiality

Confidentiality is another aspect that makes Hyperledger stand out compared to Ethereum. Hyperledger gives businesses and persons the flexibility of keeping transactions visible to only a select clique of agreed parties, with encryption keys.

Ethereum, on the other hand, can be either be public or private. Anybody can participate in an Ethereum network to see the transactions that are taking place. However, with Hyperledger that is not possible as one requires permission to join a network.

Ethereum vs Hyperledger Consensus

When it comes to consensus, all network participants must reach consensus on any transactions taking place in Ethereum blockchain, irrespective of parties involved in the transaction. Ethereum establishes consensus based on the proof-of-work algorithm whereby all the nodes must agree upon a common ledger.

Hyperledger, on the other hand, allows nodes to choose how to proceed without having to involve all the nodes in the network. In this case, two or more parties can agree in such a way that they can influence the outcome, without involving other people.

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The fine-grained control on consensus allows Hyperledger to enjoy improved performance and scalability and privacy.

Ethereum vs Hyperledger Programing Language

While both projects can be used to develop smart contracts, the programing language that developers can use differ. Ethereum allows smart contracts to be developed using a high-level contract oriented language dubbed Solidity.

Hyperledger uses the term ‘chaincode’ to denote smart contracts that handle business logic as agreed by members in a network. The chaincode have to be written in Golang, a programming language created by Google.

Conclusion

Ethereum is an ideal blockchain platform for anyone looking to develop smart contracts or decentralized applications. However, its permission-less mode of operation comes at the cost of privacy. The platform also suffers from scalability issues.

Hyperledger while not of a match for smart contracts development compared to Ethereum, is a no-brainer for anyone who cherishes privacy. The fact that it solves performance scalability issues with efficiency also makes it ideal for enterprise projects.


About Author

Swati Goyal has an extensive work experience of more than 6 years, in the field of Finance in diverse roles ranging from accounts, financial research to and Cryptocurreny. She follows the Finance market and enjoys writing on it, Swati's hobby is reading, watching movies and television shows.

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