Why Hyperledger? Hyperledger vs Ethereum / FAQ #2
In our last FAQ, we talked about how Hyperledger itself is a project not a blockchain or a cryptocurrency, and that we are referring to Hyperledger Fabric when we say that Metacoin is powered by Hyperledger. (Don’t forget to check out our FAQ list here)
In this post, we will talk about why we chose Hyperledger Fabric (a.k.a. Fabric) over other distributed ledger or blockchain platforms.
One key point is that the Hyperledger project was found by the Linux Foundation, which is known for successfully nurturing open source projects. Also joined by leading companies in various fields such as IBM, Hyperledger is more stable and secure than any other independent blockchain projects that are being developed by any individual company. Fabric provides Metacoin with the following advantages:
- Permissioned Blockchain
Hyperledger Fabric is a permissioned platform. This means that unlike permissionless blockchains where anonymity is key, there is less risk involved as participants are identified and somewhat known to each other. They are given differential access rights from the system which can secure the actions and the data of the platform. Rather than being completely anonymous, the problem can be easily identified and the issue can be handled accordingly.
Permissionless blockchains also typically utilize Proof of Work (PoW) or Proof of Stake (PoS) or even transaction fees which decreases the efficiency of the network. Fabric deploys a governance model based on a voting system unlike other blockchain platforms that cannot finalize a transaction even after a long period of time.
2. General-purpose Programming Languages
Hyperledger Fabric can utilize smart contracts (Chaincode) in mainstream programming languages such as Java, Go and Node.js which means that no additional training is required unlike constrained domain-specific languages (DSL). Developers do not have to learn a new language like Solidity of Ethereum for example.
3. No Transaction Fees
Hyperledger Fabric provides an optimal environment where participants can use the network at a reasonable cost. An Endorsed Peer executes the received Chaincode which means that theoretically, no transaction fee is required.
Ethereum for example, charges Gas Prices for the usage of the network. But as the number of users are increasing rapidly, the fee has risen exponentially, causing problems in the network.
4. High Performance
Hyperledger Fabric uses a new method of transactions which is the execute-order-validate model. It addresses the resiliency, flexibility, scalability, performance and confidentiality of the order-execute model of existing blockchains as the transactions are executed(endorsed) before reaching a final agreement on the order. This allows parallel execution which increases overall performance and scalability.
Hyperledger Fabric is developed with a modular architecture which means that its components can be ‘plug-and-play’. For example, if the existing protocol needs changing because of a new consensus, it is possible to just plug in the appropriate module for use. Initial algorithms can be set for replacing modules depending on the network governance. Projects on the Metacoin platform will support module replacements to a more efficient algorithms with the agreement of the network participants.
6. Privacy and Confidentiality
Public and permissionless blockchains have transactions executed on every node which means that it is also visible to every node in the network meaning a lack of privacy and confidentiality. Different methods have been employed to solve this problem through encryption and zero knowledge proofs (ZKP) but with considerable trade-offs like risk and performance.
Hyperledger Fabric is a permissioned platform which means can it can control which nodes can access confidential information. Participants can establish a ‘channel’ where only those who are involved in a particular transaction are granted visibility. Therefore the smart contract (Chaincode) will be only accessed to those who are in a particular channel, allowing both privacy and confidentiality.
These are some of the many characteristics that gives Metacoin significant advantages over other blockchain projects. You can learn more about Hyperledger Fabric down below:
Also don’t forget to check our FAQ list here