Libra Vs Ethereum- how do they differ? – Plebiscite IT Services Pvt Ltd

Ethereum is a open network i.e any one can join the network and become a miner and participate in the smart contracts execution. No single node has an upper hand and there is no requirement of any kind of permission.

As per the white paper, Libra will be a closed network. The power will rest in the hands of the founding members of the Libra Association. They will govern the Blockchain and validate transaction. So the blockchain will not be fully decentralized. Instead it will be partially decentralized, where control is distributed among a number of organizations.

Transaction Fees

Both the systems charges a transaction fees to run any operations in a Smart contract. The cost depends on the complexity of the script.

Transacting in Ethereum can be costly. A simple transaction costs around 0.02$. The cost increases in case of more complex operations.

Facebook promised the transaction charges to be low, but there is no mention of any particular number.

Performance

Libra promises to execute 1000 transactions per second. Whereas Bitcoin processes 4–7 transactions per second and Ethereum can process 15 transactions per second.

As Ethereum is a open network, anybody can join the network and become a miner. The problem arises in reaching the consensus. Ethereum has thousands of nodes which increases the network traffic, increases performance cost and in turn the output decreases.

This won’t be a problem for Libra, as Libra has a limited number of nodes which implies less traffic and increased output. Reaching consensus would be easier. This is the reason Libra can validate 1000 transactions per second.

Blockchain Programming Language

Both Ethereum and Libra have their own programming languages. Ethereum uses Solidity for writing smart contracts and Libra uses Move.

Ethereum follows object oriented languages where data is stored along with the code. Whereas Move follows functional languages model where data and code are separated.

Move is more secure as the code cannot be used to copy or modify the token which implies that the token cannot be altered by anyone except for the authourities.

Token Value

Ethereum is a open and independent currency. It’s value does not depend on any traditional currency. This makes Ethereum highly volatile.

On the other hand, Libra is backed by the Libra Reserve of real assets measured in traditional currency like dollar, euro. This also means that the value of the coin will be more or less equivalent to the value of USD in longer run.

Conclusion

The Libra Association believes that Libra will be better than Ethereum as Libra is backed up by a reserve of real assets so the Libra currency will have less volatility. And also the Libra Blockchain is written in a new language called Move which provides extra security.

Libra doesn’t provide full decentralization but this comes with a benefit. The performance will be faster due to this.For more information, you can reach out to us at contact@plebiscite.in