How Hyperledger, Bitcoin, and Ethereum differ from each other
The Linux Foundation as it’s host, an effort of collaboration at a global scale with open sources, which is created for the advancement of blockchain technologies across different industries, It includes Leaders in Finance, The internet of Things, Banking, Manufacturing and Technology, Supply Chains, telecom and many more.
There are three blockchain development platforms we have as of now and few are under development, So will be discussing in this blog three major platforms (Bit-coin, etherium, and hyper ledger). Today we are also going to discuss where we should use it.
As we all know about the cryptocurrency Bit-Coin. This currency is built upon the blockchain open platform bit-coin and we can see globally people are accepting such virtual currency and there is a high demand for such technology systems.
Ethereum is also a blockchain platform again drive by the open-source community. It is for public use, based on the blockchain and is a distributed computing platform. It also finds use as an operating system owing to its possession of smart contract(scripting) functionality. It has the capability to support the Nakamoto Consensus(a modified version of it) using state transitions that are transaction-based. Ethereum is designed for handling more use cases comparatively to Bitcoin so we can say it has better technology back and more robustness.
Finally, Hyperledger is one of the most feature-full Private blockchain networks, after a handsome amount of learning of development of bitcoin and etherium; open-source community developed this platform. Hyperledger allows for transactions to be made with each user while keeping them confidential from the other user(s). However, this is not possible on the Ethereum as it is a platform where all transactions are completely transparent and every user has access to the information of every other user’s transaction(s). Another fundamental difference between the two is that Hyperledger has no inbuilt cryptocurrency. This is not true for the Ethereum which has its own built-in cryptocurrency known as “Ether”.
Hyperledger vs Ethereum
|Purpose||The preferred platform for B2B businesses||A platform for B2C businesses and generalized applications|
|Mode of Peer Participation||Private and Permissioned Network||Public/Private and Permissionless Network|
|Consensus Mechanism||Pluggable Consensus Algorithm: No mining required||PoW Algorithm: Consensus is reached by mining|
|Programming Language||Chaincode written in Golang||Smart Contracts written in Solidity|
|Cryptocurrency||No built-in cryptocurrency||Built-in cryptocurrency called Ether|
Blockchain comparisons: Etherium, Bitcoin, and Hyperledger
|Anonymity||Pseudonymity, no encryption of transaction data.||Pseudonymity, encryption of transaction data.||Pseudonymity, no encryption of transaction data.|
|Restricted public access to data||Public or private||private||public|
|Scalability||High node scalability, low-performance scalability||Low node scalability, high-performance scalability||High node scalability, low-performance scalability|
|Governance||Medium, core developer group but EIP process.||Low, open governance model based on the Linux model.||Low, decentralized decision making by community miners.|
|Native currency||Yes, ether||no||Yes, Bitcoin high value|
|scripting||High possibility, turning complete, virtual machine, high-level machine language.||High possibility, turning complete, scripting of chain code, high level Go language.||Limited possibility, stack-based scripting|
Now, one of the basic differences between these two and Bitcoin is that both Hyperledger and Ethereum are in themselves currency platforms that deal with currencies and have their technologies used by companies to develop different programs. But Bitcoin, in itself, is just a currency. It is not a platform. Bitcoin also makes use of the “Blockchain” Technology as is done by the two aforementioned platforms. But the version of the technology used by Bitcoin is far less robust than that of the other two.