Need of Hyperledger in Bitcoin- Blockchain

The world’s first decentralized digital currency, Bitcoin, revolutionized the financial industry and paved the way for the development of blockchain technology, which various industries now use. While the Bitcoin blockchain is an incredible invention, it has some limitations regarding enterprise-level use cases. Hyperledger, on the other hand, was created to address these limitations and provide a more suitable platform for enterprise blockchain applications.

Hyperledger is an open-source blockchain project under the Linux Foundation launched in 2016. Its goal is to provide enterprise-level blockchain solutions for various industries, including finance, healthcare, supply chain management, and more. Hyperledger is neither a cryptocurrency nor a blockchain platform like Bitcoin. Instead, it is a collection of blockchain technologies and tools to build enterprise-level distributed ledger systems.

Limited Scalability:

The Bitcoin blockchain has limited scalability, meaning it can only handle a limited number of transactions per second. High transaction volumes pose a significant problem for enterprise-level use cases. Hyperledger, on the other hand, is designed to be scalable and can handle a much higher number of transactions per second.

Limited Privacy:

The Bitcoin blockchain is transparent, meaning anyone can see the details of a transaction. While this benefits certain use cases, it could be better for enterprise-level applications where privacy is critical. Hyperledger provides more privacy options, allowing for private, permissioned blockchain networks.

Lack of Smart Contract Functionality:

Smart contracts are self-executing contracts with the terms of the agreement written into code. They are an essential feature of many blockchain use cases, but the Bitcoin blockchain does not support smart contracts. Hyperledger, on the other hand, was designed with smart contracts in mind and provided more advanced functionality in this area.

High Energy Consumption:

Bitcoin mining requires a lot of computational power, meaning it consumes a significant amount of energy. Enterprises can face substantial expenses due to this environmental problem. Hyperledger does not require mining, which makes it a more energy-efficient solution.

Limited Governance:

The Bitcoin blockchain is decentralised, meaning no central authority manages the network. Enterprise-level use cases encounter issues when governance and control are critical. Hyperledger provides more governance options, allowing for more control over the web.

The Need for Hyperledger in Bitcoin-Blockchain:

The Bitcoin blockchain was the first implementation of blockchain technology. Its design aimed to create a peer-to-peer electronic cash system. It uses a network of nodes to validate transactions and maintain the blockchain ledger. Each node on the web stores a copy of the blockchain, and the nodes verify each new block added to the chain before being added to the ledger. Although Bitcoin’s blockchain offers security, transparency, and decentralization, its design does not cater to enterprise-level use cases. Here are some of the limitations of the Bitcoin blockchain that make Hyperledger necessary:

Hyperledger addresses these limitations and offers a more suitable platform for enterprise blockchain applications. It provides tools and technologies like Hyperledger Fabric, Sawtooth, Iroha, and Burrow. It provides tools and technologies like Hyperledger Fabric, Sawtooth, Iroha, and Burrow.

Bottom Line

In conclusion, while the Bitcoin blockchain is an incredible invention, it has some limitations regarding enterprise-level use cases. The creators of Hyperledger developed it to address these limitations and provide a more suitable platform for enterprise blockchain applications. With its wide array of tools and technologies, Hyperledger is an ideal choice for enterprises seeking to build blockchain solutions due to its high flexibility and customization options.