Ethereum VS Hyperledger

We have been looking at the advancements that are taking place in each sector, and technology is reinventing the landscape of businesses on a continuous basis. In recent years, we have seen some groundbreaking technologies, and one among them is Blockchain. 

Blockchain has been continuously scaling new heights and expanding its wings to different segments. It has been contributing its share towards the growth and development of organizations.

The blockchain is associated with various platforms, and knowing the difference between these platforms will definitely help in selecting the best tool that suits your needs. In this blog, let’s discuss the significant differences between two different electronic ledgers such as Ethereum vs Hyperledger.

Even though they have the same functionalities and both work with the blockchain platform, there are still some significant differences between them in various aspects.

Let’s look into the differences between Ethereum and Hyperledger after getting an overview of them and how they work.

Ethereum VS Hyperledger - What are the Difference?

What is Ethereum?

Ethereum was developed by Vitalik butter, and it is an Open Source software. It is a blockchain-based decentralized computing platform that helps in executing smart contracts all over the world.

Vitalik developed Ethereum as an extension to the core version of blockchain. He also made developments to the bitcoin protocol which enables Etherium to extend its applications beyond currency issuances. 

Ethereum uses a programing language called Solidity and has an inbuilt cryptocurrency called Ether. It runs on a virtual network called Ethereum Virtual Machines (EVM).

It has the ability to write and deploy smart contracts very quickly. Anyone from any corner of the world can access the Ethereum blockchain and can maintain the network.

If you want to enrich your career and become a professional in Blockchain, then visit Mindmajix - a global online training platform: "Blockchain Online Training" This course will help you to achieve excellence in this domain.

What is Hyperledger?

Hyperledger is an open-source project developed by Linux Foundation. It is a permissioned blockchain Framework developed and customizable for the applications of different organizational needs.

Hyperledger is developed by keeping in mind the requirements of various organizations. It acts as a plug-and-play system where you can customize applications according to the needs of the enterprise.

[ Related blog: Hyperledger Tutorial for Beginners ]

Hyperledger delivers a high degree of confidentiality, scalability, and resilience. It is built on a modular architecture that is flexible for customizing business applications.

Hyperledger Fabric uses container technology to host the smart contracts. It is more secure when compared to Etherium, and accessible by the authorized parties only.

 MindMajix Youtube Channel

Hyperledger vs Ethereum - Which is Better?

Let's consider some major differences between Ethereum and Hyperledger. 


Security plays a significant role in any organization, and data breaches can lead to a major downfall of organizational growth.

Ethereum application network is very transparent, and the transactions happening over it can be accessed and visible to everyone on it. 

Hyperledger is highly secured and the transactions can be only visible to the people who are entitled to it. Hyperledger provides a secure way to transmit information between different parties.

Mode of Accessing:

In terms of granting permission, Ethereum is a permission-free blockchain network.  As it is a public ledger, anyone can download the Ethereum client, can participate in mining, and also will be able to see all transactions on it.

In Hyperledger, accessibility is strictly restricted to the only set of the community that is authorized users. Participants must have permission to join this network.

It prevents others from accessing the valuable information, and from making alterations to it.

Programing language used: 

Ethereum uses smart contracts, and it requires a high-level language to develop such contracts. It is written in a high-level contract-oriented language known 

To code in hyperledger, developers use “Chaincode” which acts as a synonym for Smart contract.

A chain code handles the transactions between the two agreed parties just like a smart contract does in Ethereum. Hyperledger chaincode is written in a programming language called Galong created by Google. 

Suitable for: 

The common intention behind building an application is having a definite purpose, and the same principle applies to both Ethereum and Hyperledger.

Ethereum is designed to run smart contracts on EVM (Ethereum Virtual Machine)  and it is available for Mass utilization. 

On the other hand, the hyper ledger is developed for the purpose of business transactions. It is well suited for B2B transactions.

It facilitates an environment where you can develop an application that will compensate for the requirements of the business.

Blockchain Tutorial Blogs


When it comes to Ethereum, it has an inbuilt currency called Ether. When we compare both Hyperledger and Ethereum, Ethereum has its own currency, and it is advantageous when it comes to dealing with crypto-related activities.

Hyperledger does not have any kind of inbuilt cryptocurrency, and also it needs no currency for executing the transactions. Mining is not required at all in the hyper ledger.

Hyperledger consists of scalable consensus which helps in handling the high transaction rates needed by different enterprises for smoother and faster functioning.


Governance plays a crucial role in the process of decision-making. In Ethereum, decision-making power is generally distributed in the blockchain community.

It will answer all your questions so that you will have a clear idea of the decision-making process on a blockchain platform.  

Once a block of blockchain has been created, this should be maintained well, and a team of developers does this.

Different parties will also authorize to take part in the decision-making process such as cryptocurrency exchanges, miners, and Dapp developers. 

[ Related Article: Bitcoin vs Ethereum vs Blockchain - Differences ]

The decision-making facility available only in Ethereum but not in a hyper ledger. 

Type of Ecosystem: 

Ethereum has a well-developed ecosystem because of its smart contracts and business logic system.

It has been in the market for a very long time. It is effortless to find an Ethereum application developer because of the easy understandability of its ecosystem.

Hyperledger has come to market recently, and it needs some space and time to become the pro. Even though it is new, it has its capabilities to support high enterprise-level applications.

Consensus Mechanism: 

It is very vital to have a consensus to agree upon the different transactions happening over a blockchain network. On the Ethereum application, all network participants have to satisfy the consensus for all the transactions they have undergone.

At present, Ethereum is following a mining-based principle called Proof-of-Work (PoW) algorithm to fulfill the Consensus mechanism.  All nodes on Ethereum have to agree upon the common ledger.

When it comes to Hyperledger, it permits the nodes to choose between, which means no consensus is required. It works on an agreement protocol (PBFT) where two participants are agreed upon a shared key, and they are responsible for the outcome of transactions.

It eliminates the interference of the third parties between the agreed parties. That’s how hyperledger has secured the way of the transaction process and restricts unauthorized people. 

Frequently asked Blockchain Interview Questions & Answers

What suits your needs?

Developers who want to build an application or start an industry either on Ethereum or Hyperledger should have to select the best that suits them. Both applications are highly flexible in unique ways. 

Ethereum’s powerful smart contract engine makes it flexible for any kind of platform. Its permissionless model of accessibility and transparent transactions comes at the cost of privacy and performance scalability. 

Hyperledger solves the problems such as privacy and performance scalability by permission way of accessing it.  Its modular architecture lets you customize the applications according to the enterprise requirements. 


The blockchain is acting as a secured platform, and shifting business transactions to blockchain helps in leveraging the full value of it. Ethereum and Hyperledger are the two essential means to transact upon Blockchain.

Blockchain's end-to-end encryption system will help in securing the information from falling into the hands of hackers. Choosing the best platform between Ethereum and Hyperledger that suits your requirements will give you a competitive edge over rivals. 

Course Schedule
Blockchain TrainingJun 18 to Jul 03View Details
Blockchain TrainingJun 22 to Jul 07View Details
Blockchain TrainingJun 25 to Jul 10View Details
Blockchain TrainingJun 29 to Jul 14View Details
Last updated: 04 Apr 2023
About Author

Arogyalokesh is a Technical Content Writer and manages content creation on various IT platforms at Mindmajix. He is dedicated to creating useful and engaging content on Salesforce, Blockchain, Docker, SQL Server, Tangle, Jira, and few other technologies. Get in touch with him on LinkedIn and Twitter.

read less