Hyperledger vs Corda
Hyperledger and Corda both are the distributed ledger technologies. The distributed ledger is a database where the digital data of the transactions are shared across countries and institutions. These are open source network which records the same data at different computers at the same time. Since there is no central data storage so there is no chance of cyber attacks. The best-known application of the distributed ledger technology (DLT) is the blockchain technology which has opened a whole new bundle of possibilities for businesses worldwide. Let’s take a look at two such applications of DLT by utilizing the blockchain technology.
What is Hyperledger?
The Linux Foundation came up with a project ‘Hyperledger’ in Dec. 2015. The motive was to present a platform for developers and businesses where they can work to build new blockchain networks. The project is open-source offering a variety of tools and frameworks and projects to work upon.
The aim of Hyperledger project is the utilization of the blockchain technology for the development of businesses through collaborative effort. The list of members includes the technology giants Airbus and Daimler; IT firms IBM, Fujitsu, SAP, Huawei, Nokia, Intel and Samsung; financial institutions Deutsche Börse, American Express, J.P. Morgan, BBVA, BNP Paribas and Well Fargo; the blockchain startups Blockstream, Netki, Lykke, Factom, bloq and Consensys.
Modular built-up: Developers can create their own pluggable components and can introduce new modules without the need to rebuild the whole system. This structure is very helpful like in a custom identity management system built on the blockchain platform.
Blockchains can keep their identity anonymous: There are blockchains which do not want to expose their identity to the public while ensuring accountability and transparency. The permissioned blockchains can be assessed by particular users only. For example, finance companies like a mortgage company need to keep their identity private.
Data partitioning and retrieval on-demand: There is a Channels feature in Hyperledger which partitions the stored data. This means that you can access the data on request as per your requirement. This helps in maintaining the privacy of the companies’ data.
Faster transactions than ever: It doesn’t follow a layered architecture with different levels of verification which makes the transactions fast and easy.
Support from the community: All the major companies today are supporting the development of blockchain technology.
What is Corda?
Ethereum and bitcoin are the blockchains which make all transactions 100% public. They are trustless and it is almost impossible to change the transactions once incorporated into the chain. This downgrades the performance and scalability. Corda is the only available open source blockchain project that allows the building of an interoperable blockchain network which is completely private. The DLT developed by R3 Company allows direct transactions using smart contracts.
Corda’s architecture is quite simple since it focuses only on the finance domain.
Solve the bank problems easily: The blockchains do not solve the issues faced by the financial industries. Corda includes the benefits of blockchain system and gives a platform which is most appropriate for the working of the financial institutions. It uses blockchain but is not the blockchain itself.
Ensures Interoperability of blockchain networks: Built particularly for businesses, Corda ensures the interoperability of various networks on the system. This also ensures the privacy and security of the networks.
Corda is highly cost-effective: The transactions are done through smart contracts. There are no intermediaries involved.
Hyperledger vs Corda
Use Cases: Corda is tailor-made to be used in the financial services industry whereas Hyperledger is used in a number of different industries.
Built on Corda, Marco Polo’s Pilot Scheme was successfully carried out between Germany & China between Commerzbank and Landesbank Baden-Wuettemburg banking institution.
Recently even the software firm MonetaGo has switched from Hyperledger to Corda platform. The company’s CEO addressed Corda’s good architecture comparing to Hyperledger as the reason for the changes.
Participation: The access to the peers is permissioned in both platforms. They aren’t trustless.
Consensus: It is not necessary that all the participants of the network reach an agreement for the completion of a transaction. Not all nodes of the network participate in the consensus building process.
Currency: Both Hyperledger and Corda don’t need a cryptocurrency. However, Hyperledger has an underlying token Chaincode. Corda doesn’t have a native currency.
The blockchain technology is in its development phase and so are the distributed ledger technologies. As the new applications are emerging for the DLTs they are gradually developing.