Hyperledger vs Ethereum: Which One to Choose

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Blockchain technology and other related solutions hitting the mainstream are creating an urgency for enterprises to implement blockchains. Platforms such as Hyperledger and Ethereum have already made huge strides in this direction. Thus, it is not surprising that consumers have begun to consider which platform is best for their business needs. This article will compare Hyperledger vs Ethereum to help you make the best choice for your company.

What is Ethereum?

After its launch in 2009, Bitcoin became the powerhouse of the entire blockchain industry.  But over time, more and more advanced projects began appearing on the market. Some began to compete for the leading position. One of these projects was known as Ethereum and its ETH coin. 

Ethereum is a universal platform of smart contracts. Ethereum allows you to use your own code and interact with applications created by other users. Due to its flexibility, Ethereum allows you to run many programs of varying complexity.

One of Ethereum’s selling points is that it allows developers to create and run code on a distributed network instead of a centralized server. So, theoretically, working on these types of applications cannot simply be stopped or censored.

Today, various blockchain projects are under development using Ethereum as the basis of their platform. These include DeFi decentralized finance applications, crypto-lending platforms, pharming, and many others.

What is Hyperledger?

First, Hyperledger is not a cryptocurrency. Invented by the Linux Foundation, Hyperledger is more like a hub for open blockchain development and promoting cross-industry blockchain technologies. 

The platform aims to create an environment where software and company communities can meet and coordinate to create blockchain frameworks.

Hyperledger incubates and promotes a range of business blockchain technologies, libraries, interfaces, and applications. It is currently developing the following projects:

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


Hyperledger vs Ethereum: what are the main differences?


Ethereum is ideal for mass consumption. It is aimed at creating B2C businesses and decentralized apps. 

Hyperledger, in its turn, is designed to create B2B businesses and cross-industry apps. It focuses on helping businesses to collaborate with developers working with Distributed Ledger Technology and provides blockchain services for enterprises. It is also designed to provide a higher level of platform privacy.


Since Ethereum is a public network, all the transactions are transparent. This means that anyone can view them. 

Hyperledger utilizes limited access, or ‘allowed blockchain network’. Only businesses that possess the Certificate of Authorization can view the transactions.

Smart Contracts

A Smart Contract is a computer protocol that allows for transactions and controls their execution using mathematical algorithms. It helps to control the transfer of digital assets between the parties involved in a contract. Once the condition of a contract is set, any third party can change it. Smart contracts became widespread with the inception of Ethereum.

Hyperledger fabric also allows member organizations to create transactions on specific conditions. They are known as chaincode.

Programming Languages

Ethereum uses Solidity for writing smart contracts and JavaScript, Python, and Golang for developing applications. 

Hyperledger mainly relies on Go to write the chaincode. Java and JavaScript have been used as well. 

Participation of Persons

Anyone on the internet can mine Ethereum. It is a public and permission-free network. 

Hyperledger only allows authorized members to use the platform. It is a permissioned private network. All the confidential information is hidden and protected from manipulation by external parties. 

Proof-Of-Work (POW) 

Since Ethereum is a decentralized network, a Proof-Of-Work (POW) mechanism runs throughout the blockchain. This way the participant nodes are able to come to a consensus on account balances, the order of transactions, and so on. Ethereum POW helps users eliminate fake transactions.

Hyperledger, as a private and permissioned network, doesn’t require any POW to validate a transaction. No third party can view a specific transaction. 

Transaction Speed

Ethereum’s POW mechanism increases the time it takes to complete a transaction. The mechanism is capable of processing about 20 transactions per second. 

In its turn, the Hyperledger fabric doesn’t have a POW mechanism. Thus, its ability to process transactions is much higher, coming in at around 2,000 transactions per second.


Ethereum’s native cryptocurrency is known as ETHEREUM(ETH). 

Hyperledger does not have its own cryptocurrency.

Feature Ethereum Hyperledger
Purpose B2C applications B2B applications
Confidentiality Public blockchain Private blockchain
Participation Anyone Only with Certificate of Authorization
Programming Language Solidity, JavaScript, Python, Golang JavaScript, or Java
Consensus Mechanism Proof of Work Mechanism Pluggable consensus mechanism
Speed of Transactions 200 per second 2,000 per second
Cryptocurrency Ether or Ethereum _


So which one should you choose?

Both platforms have their utility for specific business needs. Below are the main points to consider when choosing one that best accommodates your requirements.

Ethereum works best for:

  1. Creating decentralized apps for customer use
  2. Developing community-led open-source apps

Hyperledger’s most popular use cases are:

  1. Creating private applications
  2. Creating customized blockchain algorithms

If you have any doubts about using blockchain technology in your business, contact us. We are always here to advise potential clients on what is possible and how to achieve it in order to produce oustanding business outcomes.