Ethereum vs. Hyperledger – Which is better? Part I

Built for enterprise





Ability to write chaincode in familiar languages



Transactions can be non-deterministic



Support for private data


Enterprise Footprint


Cryptocurrency not needed


Membership Service Provider


  • Built For Enterprise:
“most enterprise apps would get tilted towards Fabric, whereas Ethereum would continue to be a hotbed for dApps that are more B2C”
Ethereum has the EVM running the Smart Contracts for applications that are attributed to being decentralized and are for mass consumption.
On the other hand, Hyperledger leverages blockchain technology for business.

  • Scalability:
  1. Ethereum uses a PoW consensus which is expensive whereas HL uses Apache Kafka to order the transactions and a customizable endorsement policy to drive consensus. Fabric claims its consensus protocol can be changed and customized.
  2. Ethereum uses order-execute architecture which requires all peers to execute every transaction whereas HL uses execute-order-validate architecture
  3. Ethereum can process 25 transactions per sec [1] whereas HL Fabric can process 3500 TPS [2]
  4. The experimental results, based on varying number of transactions, show that Hyperledger Fabric consistently outperforms Ethereum across all evaluation metrics which are execution time, latency and throughput. [3]. Also see [4] for more independent tests confirming the same
  • Ability to write chaincode in familiar languages: Ethereum smart contracts have to be written in Solidity language. HL Fabric chaincode can be written in Go, NodeJS or Java
  • Transactions can be non-deterministic: this is the reason why Ethereum does not support writing smart contract in a general purpose programming language
  • Support for private data: HL provides support for private data using channels and side-db. In Ethereum there are no means to issue a private transaction between members [3].
  • Enterprise Footprint: This is the most important factor that should be used to guide which platform to choose. Many big and reputed enterprises have deployed HL Fabric based blockchain solutions e.g.:, AID:Tech, MedicalChain. I am not aware of any enterprise blockchain based on Ethereum (although I have not done exhaustive research here; also see this). JPMorgan has taken a fork of Ethereum and developed a new offering known as Quorum. there are enterprise apps built on Quorum. But Quorum is not Ethereum.
  • Cryptocurrency not needed: Ethereum requires use of a cryptocurrency known as Ether. HL Fabric has no concept of a cryptocurrency as it is N/A for enterprise apps.
  • Membership Service Provider: A MSP is what enables creation of a permissioned blockchain. Ethereum does not some with any MSP.

It is possible that Ethereum team will work to address the issues above so that its used in enterprise (see this). But in the meantime there is no reason not to use a platform that was specifically built for business.

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