Ethereum VS Hyperledger

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  • Last Updated March 07, 2018


One of the still in debate topic among many researchers and developers from hyper ledger project is the Ethereum VS Hyperledger. Before you draw a conclusion depending upon the differences that have been focused, you need to have the in-depth understanding of Hyperledger and Ethereum separately. Make sure that you get a clear view of both these concepts so that there is no confusion in future while choosing either of the options. The concepts at some point may offer similar features but one compared to other can be prominent in some way which is why; there has been a debate on the same till date.

ethereum vs hyperledger

About Hyperledger:

The focus of Hyperledger is to offer the best robust solution with better standards that would be used furthermore technology of the blockchain ledger. It also helps in commercial adoptions and makes sure you get a better solution. Furthermore, with the use of blockchain technology, you can also utilize the easy to use programming interface. It also offers different core modules which result in the easy development and better interoperability that has become a need in today’s time.

Hyperledger is quite different from bitcoin or ripple since it does not have its own currency as well. It focuses mostly on processing solution and its usage depends on how the company chooses to utilize the software.

It does not come with any specific technology since it is a banner the project by Linux foundation. It is generally used for DLT technologies and even the multiple blockchains. It supports the development of distributed ledgers with blockchain solution. It comes with characteristics such as: 

Hyperledger doesn’t refer to a specific technology, but rather it is a Linux Foundation banner project for multiple blockchains and DLT technologies which support the collaborative development of blockchain-based distributed ledgers. Each of which has slightly different characteristics. These projects include:

  1. Sawtooth Lake from Intel
  2. Fabric from IBM
  3. Indy
  4. R3 from Corda
  5. Burrow
  6. Iroha


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About Ethereum:

Developed by an Old Russian Vitalik Buterin, Ethereum is a concept that many people often compare with Bitcoin. However, this is one open-source-software which is handled by the organization called Ethereum Foundation. The purpose of choosing such software by this non-profit organization is to make sure that decentralized applications are developed. Not only this, there is Ethereum is designed with its own cryptocurrency which is named as Ether. It is generally the miners who earn it. It is compared with Bitcoin since its ability is almost equal to the Bitcoin. However, it comes with additional features that allow the programming to be done in Ether currency.

The best part about using Ethereum it can do a lot of expensive computation in a much sober manner with the help of cryptographic. This way, you can 

  1.     Trigger the data
  2.     Make the calls to other contracts
  3.     Read and write the data as and when needed. 

However, the price includes the operational cost which is measured in gas which is consumed by the transaction. It has to be paid is Ether whose payment usually gets deducted from the Ethereum account itself. You need to remember that each transaction has a limited parameter on the consumption.

Ethereum VS Hyperledger

Nowadays, there are more and more enterprises paying attention to the technology for better processing. To validate, authenticate and even the destitution to be made, they prefer the most secure and scalable solution. There is a wide range of open source project that offers the developers to create the application with the same. Talking about the leading platform, the one that has become the talk of the town are Hyperledger and Ethereum. If you are stuck up on the fact which one to opt for? Then certainly this is the right page where you have landed up. Here are some key differences that you need to know:

  1. Variation in designing
  2. The fabric is a major difference
  3. Built-in cryptocurrency
  4. Type of Ecosystem
  5. Anonymity
  6. Permission restrictions    
  7. Governance

Variation in designing

One of the most fundamental differences between Hyperledger and Ethereum is the way they are being represented by the target audience. Ethereum comes with EVM which is a public blockchain. Its target is for the application that is well distributed in nature. It is also designed for the mass consumption.  

Whereas if you consider Hyperledger, it comes with a modular architecture that offers better flexibility. Whether you want to use it or you don’t want to, as long as it is a flexible option you will not have a problem at all.  It is an a la carte option that focuses on the needs of the business which would help you streamline the process with the help of blockchain technology. 

Over Ethereum, the Hyperledger is advised because it helps to unlock different other applications. That is why, whether you focus on Bitcoin or Hyperledger, it is the best option to go with.

Related Article:  Understanding The Blockchain

The difference in Algorithm:

This is another major difference that you need to understand in Ethereum VS Hyperledger option. The use of PoW is made in Ethereum while in Hyperledger, there is No-op required. It also comes with Practical Byzantine Fault Tolerance. As compared to Hyperledger, Ethereum soaks up the entire energy. Besides, it would also make a strong impact on the Ethereum practicality in the long period.

Built-in cryptocurrency:

ETH is the built-in cryptocurrency that comes with Ethereum. In that way, if you consider the option hyper ledger or bitcoin, there is no such thing. That is the main reason why it can be a good match for the applications that require such type of inbuilt solution. Although it is advantageous in most of the way, one needs to equally understand the drawback associated with it which is that in some cases, even if the cryptocurrency is not required, you still have to use it because of an inbuilt feature.

Related Article:  Bitcoin Vs Ethereum Vs Blockchain 

Type of ecosystem:

Ethereum has a matured ecosystem which is the main reason why it results in the smart contract and better business logic. You can easily find the Ethereum application developers but the reason why you may take time to find a Hyperledger developer is the use of ecosystem.  Ethereum is in this phase for quite a long time but if you take the example of Hyperledger, then you need to understand that it has been recently started and is yet to make its space. Although it has the potentiality to be a platform for the applications at the enterprise level those who are looking for a long-term solution without much hassle shall certainly opt for the Ethereum.


This is present in the blockchain that helps in identifying whether the user is openly transparent or not. Ethereum is a blockchain that doesn’t need the permission of the public. In that case, the user opts for a pseudonymous solution and hides their real identity. In the case of Hyperledger Fabric, the information is clearly shared and revealed since it comes under the blockchain with private permission.

Permission restrictions    

The decision of whether the processor of the transaction can create the data blocks is done with Permission restrictions. For this, there are two models that are used such as:

  • Permission Blockchains: Under this, the processing transaction is performed by the predefined users. It focuses on the Hyperledger fabric.
  • Permissionless blockchains:  Under this, there is no restriction on the processors identify. This is the main reason why anyone can start with the mining and create the blocks. It is more commonly found in Ethereum and Bitcoin.


Governance is a degree that helps in decision making power. It is generally distributed in the community of the blockchain. It allows answering all the questions that can help you understand what decision needs to be made on the platform of a blockchain.

Since every blockchain once created should be well maintained. This is usually done by a team of core developer. However, there are many stakeholders such as miners, currency exchanges and Dapp developers who also played a crucial role in making the decision. In the case of Ethereum it can be easily made while if you consider the factor of Hyperledger, this facility is not available.

Other than this, if you are considering scripting as well in the comparison, Ethereum requires high level solid supporting language. But when it comes to Hyperledger the scenario entirely differs. The whole scripting of the chain code is done with the help of the Go language.

A distributed ledger comes with a database type with features like regions, different sites, and multiple participants. Each required stored in such ledge has a time stamped on it. It also comes with the signature of a cryptographic that is further used for validation and to secure the network in a better manner. When you talk about cryptographic signature it comes with Ethereum and Hyperledger. From the above difference, the decision is entirely yours on which one to choose for your own project.

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