Hyperledger Fabric vs Ripple: What are the differences?
The blockchain technology has given rise to various platforms and frameworks that cater to different use cases and industries. Hyperledger Fabric and Ripple are two prominent platforms in the blockchain space. While both aim to revolutionize the way transactions are processed, there are several key differences between the two.
Consensus Mechanism: Hyperledger Fabric utilizes a practical Byzantine Fault Tolerance (PBFT) consensus algorithm, which ensures high throughput and low latency. On the other hand, Ripple implements a unique consensus algorithm called the Ripple Protocol Consensus Algorithm (RPCA), which does not require mining and allows for faster transaction confirmation.
Permissioned vs. Permissionless: Hyperledger Fabric is a permissioned blockchain framework, meaning that participants must be pre-approved and authorized to join the network. In contrast, Ripple employs a permissionless approach, where anyone can participate in the network as a validator or user.
Native Cryptocurrency: Hyperledger Fabric does not have a native cryptocurrency built into its framework. It allows for the integration of digital assets and tokens, but it does not have its own native digital currency. Ripple, on the other hand, has its native cryptocurrency called XRP, which primarily serves as a bridge currency for facilitating cross-border transactions.
Targeted Use Cases: Hyperledger Fabric is designed to cater to a wide range of industries and use cases, including supply chain management, healthcare, finance, and more. It provides flexibility in terms of building and customizing blockchain-based solutions. Ripple, on the other hand, primarily focuses on facilitating efficient cross-border payments and liquidity management.
Consensus Validation Model: In Hyperledger Fabric, consensus validation is performed by a subset of network participants called endorsers, who execute and validate transactions. This approach allows for flexibility and scalability. In Ripple, validation is performed by a network of independent validators, and a supermajority consensus is required for transaction confirmation.
Blockchain Network Structure: Hyperledger Fabric employs a modular architecture, allowing multiple organizations to collaborate and form a consortium blockchain network. It supports a distributed governance model, where participants collectively make decisions regarding network rules and policies. Ripple operates as a more centralized network with a set of trusted validators, making it suitable for its specific use case of cross-border payments.
In Summary, Hyperledger Fabric is a permissioned blockchain platform with a Byzantine Fault Tolerance consensus mechanism, flexible use case applicability, and a modular architecture. Ripple, on the other hand, is a permissionless platform with a unique consensus algorithm, a native cryptocurrency, and a focus on cross-border payments.