Hyperledger vs Ethereum: Which Is Beneficial For Your Business (2024)

• Software

• Priyanka Prajapati
• May 31, 2022

After its launch in 2009, Bitcoin became the powerhouse of the entire blockchain industry. However, over time it became clear that a more advanced solution was required if the technology had any chance of fulfilling the potential it promised. This is when Ethereum came along and made things a lot easier for developers who now had access to the software they didn’t have to build from scratch, which was a key factor in attracting new adopters who otherwise might have also just found another cryptocurrency to join.

Ethereum is a universal platform where anyone can create and use applications run on a decentralized network. One particularly unique aspect of Ethereum is its ability to create smart contracts, which are an agreement between two entities who communicate with one another and remain loyal to their word in an environment free from unauthorized tampering. From allowing individuals to code and use programming languages applicable to their needs and interact with other users’ applications, Ethereum allows you to use your code and provides many advanced features for complex development environments.

Ethereum markets itself as a distributed application platform and generally allows developers to create applications that can run processes on the network in a way that is similar to peer-to-peer protocols such as BitTorrent. In theory, Ethereum developers cannot be interfered with by outside forces because every node in cryptocurrency networks has the potential to affect its operation.

Today, various Ethereum-based blockchain projects are being explored and experimented with. These include Decentralized Finance (DeFi) applications, crypto-lending platforms and many others.

First, Hyperledger is not a cryptocurrency. More specifically, Hyperledger is more like a blockchain initiative. The initiative aims to further the development of blockchain in the business world by making it possible for various companies to share and observe how their clients interact with applications operating on blockchain technology.

The platform aims to create an environment for software and company communities that meet and coordinate to achieve the best possible results.

Hyperledger is a worldwide, open-source project to create an entire ecosystem of business blockchain technologies. It enables organizations to build robust, industry-specific applications, platforms and hardware systems. The following are the current projects:

• Hyperledger Sawtooth
• Hyperledger Iroha
• Hyperledger Fabric (Hyperledger IBM)
• Hyperledger Burrow
• Hyperledger Composer
• Hyperledger Explorer
• Hyperledger Indy
• Hyperledger Cello
• Hyperledger Sawtooth (Intel)

Since Ethereum is a decentralized network, a Proof-Of-Work (POW) mechanism runs throughout the blockchain for accounts to come to a consensus on account balances, transaction times and so forth. Ethereum offers help and security by eliminating fake transactions.

Hyperledger is a private and permissioned blockchain that doesn’t depend on a proof-of-work method to validate a transaction. It doesn’t allow the participation of any third party. It creates a secure environment with no need for anyone other than the parties involved in executing the contract to access the network.

Both platforms have their uses. There are pros and cons, just like anything else. Still, when we set these two business-based applications against each other to determine which one you should use the most often, they come out to be pretty even in terms of being more useful for certain tasks than others. Below are some pros and cons of both platforms to help you make a better decision about your favourite platform!

Ethereum suits best in:

• Developing decentralised apps for customer use
• Creating community-led open-source apps

Hyperledger’s most famous use cases are:

• Create private applications
• Create private applications