There’s a ton of new development in the Blockchain world which would lead to life-changing opportunities. There are many open source Blockchains out there but right now there are 2 different yet similar Blockchains which are surrounded by the users. Those two are Ethereum and Hyper Ledger Fabric.
While Ethereum is a public Blockchain which is quite similar to bitcoin. On the other hand, Hyper Ledger Fabric is a private Blockchain which aims at organizing an “enterprise”, which is open source and associated with the creation of business Blockchain application. With that said, let’s look at the major differences between Ethereum and Hyper Ledger:
The most crucial difference between Hyper Ledger Fabric and Ethereum is their design and targeted audience. Ethereum coupled with its smart contracts and EVM (Ethereum Virtual Machine) which is a decentralized computing protocol that contains objects called accounts. These accounts have the ability to execute codes, maintain a database and can talk to each other. It has a public Blockchain which is mostly for applications that are for mass consumption and that are distributed in nature.
In contrast to Ethereum, Hyper Ledger Fabric has a modular architecture which gives the user the flexibility to choose what to use and what not to. It is mainly aimed at business needs, to make their process easier by Blockchain technology.
Let’s take an example; in Ethereum a transaction is visible to all which nullifies the privacy in a business transaction (which is a common requirement in the business world). But on the other hand, Hyper Ledger Fabric allows a user to expose their transactions and information only to a specific person, avoiding any disclosure from all other users.
Consensus algorithm used is another major difference between Ethereum and Hyper Ledger Fabric. Fabric gives the user to choose between PBFT (Practical Byzatine Fault Tolerance) and No-op (no consensus needed). While Ethereum relies on PoW (Proof of Work) protocol. PoW can impact negatively on the practicality of Ethereum use in the long run.
After the consensus algorithm comes the participation of peers or we can say modes of operation, there are two modes of operations:
If the participation of every peer is permissionless than anybody is allowed participate in a Blockchain network, hence the Blockchain is public. This mode is acknowledged in Ethereum Blockchain. While Fabric follows the permissioned mode where a number of participants are selected before hand and network’s access is given only to these participants, making Hyper Ledger Fabric a private Blockchain.
Smart contract code signifies a software written in a programming language whose main function is to act as an agent and take control of assets, fulfill obligations and exercise rights in an automated way within the distributed ledger.
Let’s take an example to understand the functions of smart contract. If “x” number of raw material is delivered to one user then “y” number of Ether will be transferred to the supplier’s account in the Ethereum Blockchain network. The smart contract codes are written in GO and Java for Hyper Ledger Fabric and in Solidity for Ethereum. In Fabric “Chaincode” is the synonym term for Smart Contracts.
Cryptocurrency for both of these Blockchain network is different. Ether is the built-in cryptocurrency of Ethereum Blockchain. It is mainly used to pay rewards to the peers that contributed in reaching consensus through mining blocks and it is used to pay transaction fees. This gives Ethereum an advantage as assets can be bought through its own cryptocurrency and this cryptocurrency can also be changed into another type of cryptocurrency through exchange policy.
Hyper Ledger Fabric doesn’t have a cryptocurrency as it doesn’t follow the mining protocol to come to a consensus. This does not mean that it cannot develop its own cryptocurrency, it can develop native currency and digital token with the help of chaincode.
So, Ethereum being a public Blockchain and having its own cryptocurrency is great for versatile applications as it is flexible and secure. One can trade its cryptocurrency with assets within the network and even exchange that cryptocurrency with another one. Ethereum can work as private Blockchain but it lacks the non-disclosure protocol which is much needed in the business world.
Hyper Ledger Fabric is a private Blockchain and what makes it unique is its no-op consensus algorithm which makes any transaction quick and requires no consensus. It also keeps your transactions and data from any disclosure to other users which are not in the transaction.
All in all, one can say that Ethereum will continue to be the strong and versatile Blockchain it is, which will have B2C apps. But in the future, one can predict that the enterprise application will tilt towards Hyper Ledger Fabric for its discretion protocols.
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