Blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Blockchain is a list of records called blocks. Each block contains the hash value of the previous block. It is very difficult to alter the data stored in these blocks.
With the increasing demand of Blockchain technology, Blockchain platforms are widely being utilized by businesses and organizations. Ethereum, Hyperledger and IOTA are some trending Blockchain platforms helping in the implementation of the technology and meeting up with the growing market.
Ethereum is an open source distributed public network. It is a computing platform and operating system supporting Smart Contracts. Ethereum helps in building decentralized applications that run on Blockchain technology.
Ether is a token and it’s Blockchain is generated using the Ethereum platform. Ethereum has a virtual machine which executes the scripts. The most important point of Ethereum is its ability to deploy and write Smart Contracts. Ether and Bitcoin are cryptocurrencies, but they differ from each other. Bitcoin is only used in money transfer, whereas, Ethereum is the wider implementation of Blockchain technology. Anyone across the world can connect to Ethereum hence it is referred as World Computer.
Ethereum being on public chain provides less range of data security. One of the biggest strengths of Ethereum is tokenization. Tokenization is like cryptocurrency. Using Ethereum companies can create digital business models and assets. Ethereum is a Blockchain with built-in programming language. It relies on Smart Contracts, which are integrated in the core architecture of Ethereum. Ethereum Virtual Machine (EVM) handles distributed computation and internal state of Smart Contracts.
Hyperledger is an open sourced community to benefit an ecosystem where users focus on Blockchain related use cases that will work across a variety of industrial sectors.
Hyperledger is an umbrella project with multiple platforms under the Linux Foundation. It is a software that develops their own customized Blockchain to fulfill their business needs. Hyperledger Fabric is one of the most well-known part of Hyperledger.
It is based on the ‘private transaction concept’ where all the parties that are carrying out the transaction are visible for distribution to users. It uses well-known data streaming technologies and databases such as Apache Kafka, CouchDB and more. Since, Hyperledger follows the concept of a private Blockchain, it provides higher degree of confidentiality.
Tokenization is not the core part of Hyperledger. It is designed with distributed databases instead of decentralized platforms. Chaincode is the Smart Contract framework of Hyperledger. It runs under a docker container. Its execution is faster but is complicated as codes must be deployed manually across all the containers.
Internet of Things Association (IOTA)
The first open-source distributed ledger with feeless transitions – IOTA, its focus is data transfer from machine to machine without human intervention. IOTA is different from Hyperledger and Ethereum. It is considered as a data layer. IOTA follows acyclic directed graph known as Tangle which corrects the inefficiencies of Blockchain.
Internet of Things Association focuses on machines and carry out transactions without human intervention. The transactions in IOTA are stored as stream of transactions tangled together.
IOTA is used to prepare a money transfer system which is processed faster, is more secure, scalable, reliable and cheaper. It is not only restricted to currency exchange but supports the transfer of data from one machine to another without human intervention.
IOTA also has its own cryptocurrency known as MIOTA or IOTA coin. IOTA is a graph so it consists of nodes, whenever transaction is carried out the issuer must have authentication to previous transactions. It uses a series of cryptographic algorithms.
IOTA has two important features:
- Micro Transactions: Even a small money transaction such as buying a coffee can be done using IOTA which is not possible by any of the other crypto currencies.
- Speed: It is measured in transaction-per-second, here transactions are much faster compared to Blockchain.
Difference between Ethereum, Hyperledger and IOTA
Ethereum supports a decentralized network. It is a type of public Blockchain, so it provides less range of data security. Its strength is tokenization. Smart contracts are included in its core architecture. It eliminates central authority concept.
Hyperledger is an umbrella project with various platforms under Linux Foundation. It supports private transaction and all the members are visible to each other in the chain. It does not support classical tokenization. Smart Contracts run inside a container. The distributed ledger ensures that the data which is exchanged is not altered.
IOTA follows Acyclic directed graph known as Tangle which corrects the inefficiencies of Blockchain. It was defined for efficient data exchange, so tokenization is not supported by IOTA. It helps in data transaction between machines without human intervention.
According to the organization’s requirements, any of these three technologies can help your business grow faster and more efficiently. It’s a difficult choice to select the best of the three; however, depending on your unique challenges, you can figure out the best fit after speaking to the right Blockchain development partner.
Cygnet Infotech as experts in Blockchain technology can guide you to select the best framework for your organization. Get in touch with experts at Cygnet at +1-609-245-0971 or firstname.lastname@example.org.