Blockchain Powered Smart Contracts: Ethereum vs Hyperledger

In a “Smart Contract”, the terms of the agreement between two contracting parties or entities are directly written into lines of software code using a programming language like C or Solidity [1].Such a Contract is generally  executable meaning that the adjudication process is automated based on the terms embodied in the software code and the enforcement is controlled and carried out by the software code itself. A Smart Contract typically runs on a private or public Blockchain Platform. Examples of such platforms are Hyperledger [2] and Ethereum [3].


Hyperledger[4] is an open source collaborative effort created to advance cross-industry blockchain technologies. It is a global collaboration, hosted by The Linux Foundation, including leaders in finance, banking, Internet of Things, supply chains, manufacturing and Technology.

Ethereum[5] is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.

These apps run on a custom built blockchain, an enormously powerful shared global infrastructure that can move value around and represent the ownership of property.

This enables developers to create markets, store registries of debts or promises, move funds in accordance with instructions given long in the past (like a will or a futures contract) and many other things that have not been invented yet, all without a middleman or counterparty risk.

The Ethereum project was bootstrapped via an Ether presale in August 2014 by fans all around the world. It is developed by the Ethereum Foundation, a Swiss non-profit, with contributions from great minds across the globe.

A comparison between Ethereum and Hyperledger would be as follows according to Techracers [6].

There are different versions of Hyperledger.  For this comparison, we will use Hyperledger Fabric which is an open source platform.

The most fundamental difference between Ethereum and Hyperledger is the way they are designed and their target audience.  Ethereum with its Ethereum Virtual Machine (EVM), smart contract and public block chain is mostly targeted towards applications that are distributed in nature and are for mass consumption. A look at Ethereum dapps (distributed applications) seem to hint the same:

On the other hand, Hyperledger Fabric has a very modular architecture and provides a lot of flexibility in terms of what you want to use and what you don’t. It’s pretty much ala carte and is targeted at businesses wanting to streamline their process by leveraging blockchain technology.

For example, it is not possible in Ethereum to have a transaction visible to someone, but not visible to others (a requirement that is very common in business). Hyperledger Fabric allows this.

Another major difference is the consensus algorithm used in Ethereum versus Hyperledger Fabric. Ethereum uses PoW (Proof of work), whereas Hyperledger Fabric allows one to choose between No-op (no consensus needed) and PBFT (Practical Byzantine Fault Tolerance). PoW is known to be energy sucker and could really impact the practicality of using Ethereum in the long run. However, one must mention that Ethereum too is trying to move towards proof of stake in its next release Casper.

Ethereum has a built-in cryptocurrency (Ether) and thus can be a very good match for applications that need this inbuilt.  However, this could also be a disadvantage as there are several use cases where the cryptocurrency is not really needed.

Both of these platforms have their pros and cons and in future most enterprise apps would get tilted towards Hyperledger Fabric, whereas Ethereum would be preferred for cryptocurrency and other B2C applications.

DomaniSystems’ development roadmap supports both the Hyperledger and Ethereum Platforms.


DomaniSystems Update


  • Our public Domanitoken sale will commence on March 19, 2018 at 10:00 a.m. EST and continue until May 20, 2018 at 5:00 p.m. EST. Purchasers purchasing Domanitokens will receive their tokens within 1 week of the completion of the sale period and receive immediate access to the DCP. Please take a look at our updated website and traverse to the “Token” section
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  • We have established a good presence on a number of the top ICO Tracking websites and we continue to add more. Checks us out or track us on: ICOALERT, ICOListview, ICO TRACKER and BLN4KCODE.
  • Here is a quick update on our Roadmap and Development Plan: We’ve made great progress and we are on schedule to have our Integrated Development Environment (IDE) 1.0 ready for our Token holders to start using the Platform.  Please see our Website and Whitepaper for details.#

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We encourage open discussion on Smart Contracts, Blockchain, Security and IoT for mutual benefit and enhancement of knowledge and understanding.  You can start your discussion or questions here.  You can also contact us directly; all the information is on our Website.


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[6] Online Reference:


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