Blockchain: A Comparison of Popular Platforms, Explained
If you’re looking to build a decentralized application, or DApp, blockchain can be a great solution. However, there are several options out there.
Ethereum has proven to be a revolutionary concept in the world of cryptocurrency. Some experts, however, argue that it's not the best choice for businesses. Harmony, on the other hand, is a different concept altogether. It's a new blockchain that combines smart contracts with traditional legal contracts to create a more secure and fluid business environment than Ethereum. But how do you decide which blockchain is right for you?
In this article we will compare Ethereum vs Harmony to help you choose the right platform for your project.
What is Ethereum Blockchain?
The Ethereum blockchain is a decentralized computing platform. It allows developers to build and publish dApps (decentralized applications) that run on the Ethereum Virtual Machine (EVM).
The EVM is a virtual machine designed to run smart contracts - applications that execute transactions via rules encoded in their code. The EVM runs on every node in the network, making it possible for them all to agree on whether or not a transaction has taken place and execute its results accordingly.
Ethereum, aside from functioning as a blockchain, is also a cryptocurrency and sits next to Bitcoin as the most popular asset in the digital world. Because of its soaring
Ethereum price, more and more investors are choosing this asset to put their investment on. Besides, it is also often used as a trading pair such as ETH/USDT, ETH/BTC along with other asset pairs including
ONE USDT and many more.
What is Harmony Blockchain?
Harmony is a new blockchain platform that was launched in January 2019. It's built on the same principles as Ethereum, but it has some key differences that make it more suitable for enterprise use cases.
Harmony is a smart contract platform and decentralized application (dApp) ecosystem that aims to provide developers with a better way of building their applications on top of the blockchain.
The Harmony Virtual Machine (HVM) executes smart contracts at its core just like Ethereum does, but unlike Ethereum's EVM which runs on gas tokens or Ethers, HVM uses HNC tokens as its native currency or payment method within the ecosystem--so there's no need for gas fees when you're running applications through Harmony.
Decentralized finance
Decentralized finance is a form of lending and borrowing that uses blockchain technology to create a secure, transparent and efficient system. It's important because it gives people more control over their money, while also providing banks with an alternative to traditional financing options.
Decentralized finance works by sending cryptocurrency between two parties through smart contracts--a set of conditions written into code that execute automatically once certain conditions are met (like when you want to buy something). These transactions can be recorded on public ledgers known as blockchains, which allow anyone in the world access to see how much money each person has at any given time
Immutability and transparency
Immutability means that once a transaction has been recorded, it cannot be changed. This is unlike traditional databases, which can be edited or deleted at will.
This lack of flexibility makes blockchain technology ideal for applications where accuracy and transparency are paramount--for example, tracking medical records or voting results. It also makes blockchains useful in industries where regulatory compliance is critical (such as finance).
Smart contracts
Smart contracts are a set of rules that are automatically executed by a blockchain. They can be used to enforce the rules of an agreement between two or more parties, manage the exchange of money, property, shares or anything of value.
Smart contracts are coded using solidity and then deployed on the Ethereum network where they become part of its distributed ledger (the blockchain). When you create a smart contract in Solidity, you have access to all functions provided by Ethereum as well as any additional libraries you choose to import into your project such as web3js which allows you link up with other applications via web browsers or mobile devices running Metamask client software.
How does the proof of stake model work in Harmony?
Harmony has a proof of stake consensus mechanism, which means that instead of miners solving complex puzzles to earn rewards, users can simply hold their tokens in a special wallet and receive dividends based on the number of coins they have.
In other words, you don't need to spend money on expensive equipment or electricity bills to earn cryptocurrency with Harmony--you only need your computer (or smartphone) and some H2O.
The benefits aren't just financial: PoS is more environmentally friendly than PoW because it doesn't require as much energy consumption from miners trying to solve complex mathematical problems.
How does the proof of stake model work in Ethereum?
Proof of stake is a consensus algorithm that replaces the energy-intensive proof of work model. The idea behind it is to have people who own large amounts of cryptocurrency stake their coins, rather than using them as collateral for mining new blocks.
The result is less energy consumption, greater scalability and a more decentralized network overall (since there are fewer participants). While this sounds like an improvement over proof-of-work systems like Bitcoin or Ethereum's current system (which we'll detail below), there are some drawbacks:
- Staking requires users to lock up their funds for extended periods of time; they can't access them while they're staked in order to prevent double spending attacks or other abuse scenarios
- There aren't many projects using proof-of-stake yet because developers are still testing out how well these systems work
Harmony vs. Ethereum for building decentralized applications
Harmony is a blockchain platform that allows you to create decentralized applications.
Ethereum is a blockchain platform that allows you to create decentralized applications.
Both Ethereum and Harmony have a programming language built in, but they differ in how it's used: Harmony uses Solidity, while Ethereum uses JavaScript (or something similar).
1. Coding a smart contract
Smart contracts are pieces of code that run on the blockchain and are executed by the network. They can be used to enforce business logic, define and execute the rules of an agreement between two or more parties, and store information about the agreement. In other words, smart contracts allow you to build applications without having to trust anyone with your data because it's all stored on a decentralized network where everyone has access but no one controls it.
If you want to build a DApp (decentralized application) using Ethereum or Harmony but don't know how to code, there are several tools available for you:
- Truffle Framework allows developers who use JavaScript as their primary language to write tests for their Solidity code in Javascript tests written with Mocha/Chai/SinonJS libraries;
- Remix IDE allows non-technical users with little knowledge about Ethereum programming languages like Solidity or Serpent even less knowledge about how these languages work (they just want something simple);
2. Connecting to a blockchain node
Harmony and Ethereum are similar in the sense that they help you build decentralized applications. They both connect to nodes on a blockchain network, which means you can use them to create arrangements for smart contracts, digital identity management, consensus-based governance, or payments. The differences between Harmony and Ethereum mostly lie in their core architectures and how their tools work.
Which blockchain platform is the best for your application’s use case?
Ethereum is a good choice if you are building a decentralized application that needs to be able to store data or execute smart contracts.
Harmony, on the other hand, is a good choice if you want to build a decentralized application that doesn't need to store data or execute smart contracts.
Conclusion
In conclusion, both Harmony and Ethereum are great options for building decentralized applications. Ethereum has been around longer and has more developers working on it, but it also has some drawbacks that could make it difficult to work with in certain situations.
Harmony offers a unique approach to smart contract development with its proof-of-stake consensus mechanism. However, this approach may not be appropriate for all use cases.
In order to determine which platform is right for your project, we recommend considering factors such as scalability (both technical and economic), ease of use (developer experience), security requirements (auditability) or other specifics related specifically towards what kind of app(s) will be built on top of each blockchain protocol.
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