Hyperledger vs Ethereum: Which Blockchain Platform Will Benefit You Business?

Hyperledger vs Ethereum: Which Blockchain Platform Will Benefit You Business?

You want to know how blockchain concepts and associated tools can be used to link business and technology. How will they help your business? You’ve come to the right place. This blog will discuss the differences between these two popular blockchain platforms. You can then decide which one is best suited to meet your needs.

Before we get into the details, let’s look at the differences between these two platforms.

Hyperledger and Ethereum

Features Hyperledger Ethereum
Purpose Preferred platform for businesses in B2B Platform for B2C business and generalized applications
Confidentiality Confidential transactions Transparent
Mode for Peer Participation Private and Permissioned Network Public/Private, Permissionless Network
Consensus Mechanism Pluggable Consensus algorithm: No mining required Mining achieves consensus with the PoW Algorithm
Programming language Chaincode written in Golang Smart Contracts written in Solidity
Cryptocurrency There is no built-in cryptocurrency Built-in cryptocurrency known as Ether

The following video is also available from our Blockchain expert. It discusses the key differences between Hyperledger (or Ethereum):

Which Blockchain Technology to Choose


Let’s now learn more about these platforms, and examine each point in greater detail.

What’s Ethereum?

Ethereum is an open-source distributed blockchain network. Smart Contract functionality allows for decentralized apps to build on Ethereum.

Vitalik Buterin created Ethereum to extend the original blockchain concept. He devised Bitcoin’s protocols in order to support other applications than currency issuance. The key breakthrough was the ability to quickly create and deploy Smart Contracts. These are bits of code that run on the network. This platform can be used to help developers write programs that allow them to build decentralized organizations.

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Anybody can connect to Ethereum blockchain from anywhere in the world and maintain the current status of the network. Ethereum is often referred to as the World Computer.

What’s Hyperledger?

“Hyperledger” is an open-source development project that will benefit an ecosystem of Hyperledger-based solution providers and users. It will focus on blockchain-related use cases and can be used in a variety of industries .” – Brian Behlendorf (Executive director, Hyperledger).



Each industry and business is unique in its own way, so the applications that serve them must be customized. The Ethereum Blockchain uses a general protocol to manage all the transactions that occur on its network. Hyperledger is a software that allows people to create their own customized blockchains to meet their business needs.

The Linux Foundation hosts Hyperledger, an open-source collaborative project. It is not a tool or a platform like Ethereum. It is a broad strategy that includes multiple platforms to develop enterprise solutions.

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Let’s now compare Hyperledger to Ethereum.


Hyperledger and Ethereum: The Key Differences


The primary difference between Hyperledger & Ethereum is their intended purpose.

Ethereum runs Smart Contracts on EVM for applications that can be attributed to being distributed and are intended for mass consumption.

uses blockchain technology to help businesses. It supports pluggable implementations that deliver high levels of security, resilience, and scalability. Hyperledger’s modular architecture allows for a wide range of uses. Its extensible architecture allows for futuristic solutions to enterprise blockchains.


Let’s suppose Andy manages a pie-making industry using blockchain.

Hyperledger makes it possible for Andy sell pies at a discount to Bobby while keeping their agreement secret from Andy’s customers.


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This arrangement wouldn’t be possible if Andy used Ethereum for the same. Because Ethereum is transparent, every transaction can be seen by everyone on the network.

Hyperledger thus allows confidential transactions. It allows businesses to make transactions visible only to those who have the correct encryption keys.

Mode for Peer Participation:


Let’s look at Hyperledger’s operation vs Ethereum.

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Ethereum is public or private with no permissions, while Hyperledger can only be private and authorized.

This means that anyone can join the Ethereum network at any moment. Hyperledger, however, has a predefined group of participants and their access to the network is limited to them only. To join the network, one must have permission. The way consensus is reached depends on the mode of participation.

Consensus Mechanism:


All Ethereum participants (or nodes), must reach consensus on all transactions. This applies regardless of whether or not a node participates in a transaction. Ethereum’s consensus mechanism is currently established by mining using the Proof-of-Work algorithm. All nodes must agree on a common ledger, and they all have access to all previous entries.


Hyperledger, on the other hand, allows nodes to choose between No op (no consensus required) or an agreement protocol (PBFT). This is where two or more parties can agree upon a key in such that they both have an influence on the outcome. This prevents unintended third parties from forcing key choices on agreeing parties. Hyperledger allows for fine-grained control of consensus and restricted access to transactions, which leads to improved privacy and performance.

Programming Language

Another important difference is the use Smart contracts in Ethereum. These Smart contracts are written in a high level contract-oriented language called .

Hyperledger allows you to use the term chaincode as a synonym of smart contract. A chaincode is a way to handle business logic that has been agreed upon by the members of the network. It may also be considered a smart contract. These chaincodes can be written in Golang (a programming language developed by Google).


Hyperledger does not require cryptocurrencies to perform transactions. It does not have an embedded native cryptocurrency such as Ethereum’s token, Ether. There is no need to mine. This allows for a scalable consensus algorithm capable of processing high transaction rates, which is required by most enterprise apps. However, it is important to look at both the coin and token. Ethereum can be more advantageous than Hyperledger for use cases that require cryptocurrency.


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Hyperledger can also be programmed, so it can use the embedded logic in chaincode for automating business processes throughout your network. Chaincode can also be used to create custom tokens.

Which one do you prefer?

Developers who wish to create an app or start an industry using these platforms must make a decision. Both Hyperledger (and Ethereum) are flexible in many ways, but they have distinct aspects.


Ethereum’s smart contract engine is powerful and makes it an open platform for virtually any type of application. But, it’s permissionless operation and total transparency come at the expense of privacy and performance scalability.

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Hyperledger addresses privacy and performance issues through a permissioned mode and fine-grained access controls. Hyperledger’s modular architecture can be tailored to many applications, similar to a toolbox.

source https://www.edureka.co/blog/hyperledger-vs-ethereum/

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