2021-03-11 08:16:26

Hyperledger vs Ethereum – Which Blockchain Platform Is Good for Your Business?

Blockchain is a revolutionary concept developed as a way to disrupt the financial industry. It is the perfect answer if you are looking for a private and secure way to manage finances over the web. When it comes to the blockchain world, both Hyperledger and Ethereum have created ripples of innovation.

Hyperledger and Ethereum are popular open-source blockchain platforms used for creating blockchain applications. They are also used for encouraging blockchain developers around the world for collaborative development engagement of these Blockchain-based frameworks and tools. Furthermore, both Hyperledger and Ethereum platforms are continually advancing when it comes to their use cases.

If you are wondering which platform is the most apt for your particular requirement, you’ve come to the right place. In this article, we will highlight everything you need to know about Hyperledger and Ethereum and the differences between the two platforms.

What Is Ethereum?

Ethereum is a public, distributed, and decentralized computing platform. Its primary function is to execute smart contracts. For example, it can be programmed to release funds on a specific date each year. It is a decentralized platform and each participant in the network usually has access to the same copy of the blockchain network. Ethereum runs on a virtual network known as the Ethereum Virtual Machine (EVM).

Every participant (node) in Ethereum needs to pay “gas” for each transaction carried out on the network. The gas is the cost for each transaction and it is paid in Ether, the native utility token of Ethereum.

Benefits of Ethereum

Some of the benefits of Ethereum platforms are:

  • Although Ethereum is a public domain platform, a third party cannot get access to the ledger.
  • Corrupting activities cannot be performed in the system without anyone noticing it.
  • It is very secure.
  • There is no downtime in the Ethereum

What Is Hyperledger?

Hyperledger technology is a global enterprise blockchain project where organizations can get guidelines, frameworks, tools, and standards for building open-source blockchains and related applications that can be used across different industries.

Benefits of Hyperledger

Hyperledger fabric can handle plenty of traffic that enterprises typically get on a daily basis. Some of the benefits of Hyperledger fabrics are:

  • The Hyperledger platform is open source, which means anyone can use the platform for their company’s benefit.
  • The Hyperledger fabric project is suitable for a wide range of industries.
  • It comes with a set of quality codes to help keep your network secured.
  • Hyperledger technology offers a higher efficiency when compared to other blockchains.
  • The Hyperledger fabric project is fully modular, which means you can use as many Hyperledger features as you like in the system.

Hyperledger vs Ethereum: Key Differences


The major difference between Hyperledger and Ethereum is their purpose. Ethereum can run on Smart Contracts on the EVM for applications because they are decentralized and can be used by the public.

However, Hyperledger makes use of blockchain technology for business. It can also support pluggable implementations of components to deliver a high degree of confidentiality, scalability, and resilience. Furthermore, Hyperledger features a modular architecture that provides users with a lot of flexibility based on how they want to use it.

Mode Of Accessibility

Ethereum is a public blockchain platform, so you don’t need permission to access it. Anybody can download the Ethereum framework to participate in Ether mining and discover & access the transactions that occur in it.

Hyperledger, on the other hand, maintains strict control over accessibility. Only authorized members can access the platform and use its tools. Furthermore, each participant needs to gain permission before they can join the Hyperledger network.


As stated above, Ethereum is a public network and does not require permissions before you can use it. This makes it entirely transparent, meaning all the transactions are recorded on the blockchain network and it can be viewed and accessed by every peer.

In contrast, Hyperledger is a permissioned blockchain platform and it is very secure. Only people authorized to access a transaction occurring on the network can see them. You need to obtain permission if you want to access a specific resource on the Hyperledger network.

Programming Language

Another major difference between Hyperledger and Ethereum is the programming language. Ethereum uses smart contracts that are written in a high-level contract-oriented language known as Solidity.

Hyperledger uses the term “chaincode” for their smart contracts. The chaincode can be used to handle business logic that is agreed upon by the members of the network. It can then be considered as a smart contract. These chaincodes are written in a programming language created by Google known as Golang.

Consensus Mechanism

The Hyperledger fabric project offers users a lot of consensus mechanisms to utilize, and it uses the Kafka consensus algorithm natively. It also has Solo and Raft protocols in the mix. The Solo protocols are perfect for developers while Raft is crash-fault tolerance.

The Ethereum consensus mechanism makes use of an upgraded version of the Proof of Work algorithm. Although the Ethereum consensus mechanism is quite efficient and robust, in reality, it takes a lot of resources and can slow down. However, the Ethereum consensus mechanism PoW is regarded to be a bit more superior to the Raft protocol.


Ether is Ethereum’s inbuilt or native token. Each participant can mine for Ether by paying gas.

Hyperledger does not have a cryptocurrency and you don’t have to mine for cryptocurrency. This helps in fixing the scalability issues of the network and enables it to handle high transaction rates that automate the business deals made across the network.

Ethereum vs Hyperledger Fabric: The Comparison Table

Ethereum vs Hyperledger Fabric

Which Is Better: Ethereum or Hyperledger?

Both Hyperledger and Ethereum are highly flexible, but their strengths lie in different aspects. The powerful smart contracts engine of Ethereum makes it a generic platform for any application. However, it does not require permission and it is transparent, which affects the performance scalability and privacy.

Hyperledger, on the other hand, solves the performance scalability and privacy issues by using a permissioned mode of operation and access control. You can also customize Hyperledger to a wide range of applications, analogous to a toolbox.

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