Our cooperation partner Frankfurt School Blockchain Center has published two new working papers:
- “Comparison of Ethereum, Hyperledger Fabric and Corda” [Medium, PDF]
- “Consensus Methods in Blockchain Systems” [Medium, PDF]
With this paper, we provide a brief analysis of the most notable differences between the distributed ledger technologies (DLT) Hyperledger Fabric, R3 Corda and Ethereum. Our intention is to give decision makers new to DLT guidance for what use cases Hyperledger Fabric, Corda and Ethereum are most suitable.
From the white papers of Hyperledger Fabric, R3 Corda and Ethereum it becomes obvious that these frameworks have very different visions in mind with respect to possible fields of application.
Distributed consensus systems are a novel means of establishing consensus between multiple parties concerning some piece of information, such as ownership of an asset. Consensus is recorded by cryptographically signing data, thus proving its authenticity. Blocks of signed data can be linked to previous blocks, thereby enforcing a temporal chain of blocks, giving rise to the term “blockchain”. Since the emergence of Bitcoin in 2008, various blockchain systems have been proposed with very divergent properties and areas of focus. With this paper, we analyze properties and limitations of the most important classes of blockchain systems, with a specific focus on how these systems establish consensus. Distributed consensus has become a highly dynamic field with much work being committed outside of traditional academia. Accordingly, many aspects of distributed consensus lack formal analysis and concrete criteria under which newly proposed systems can be analyzed.
We propose four criteria under which the effectiveness of distributed consensus methods can be analyzed under economic considerations. Based on these criteria, we show how the incentives of economic agents in a consensus system accomplish a stable consensus state. Additionally, we are able to use these criteria to derive challenges in proof-of-stake consensus.