Understanding Hedera for EVM Developers

Hedera vs Ethereum

While Hedera strives for EVM equivalence, it's important to recognize certain unique aspects and fundamental differences in its network architecture and operations, such as the handling of state data structures, hashing algorithms, and the management of accounts and transactions. These distinctions in network behaviors are intentional design choices made to align with EVM standards, thereby achieving EVM compatibility. This approach ensures that while Hedera aligns closely with Ethereum, it also maintains its distinctive features and optimization.

Network and Security Differences

FunctionHederaEthereum

Network State Data Structure

Virtual Merkle Tree

Merkle Patricia Trie

Hashing Algorithm

SHA-384

Keccak-256

Security

High security with aBFT

Secure with decentralized PoS network

Account and Authorization Differences

FunctionHederaEthereum

Authorization Signatures

Used for transaction authorization outside of smart contracts

Typically used within smart contracts

Special System Accounts

Available with unique properties

Not available

Non-ECDSA Accounts

Non-ECDSA accounts (such as ED or multi-key) are supported by Hedera and

ECDSA accounts are fully compatible

ECDSA accounts are supported by Ethereum and non-ECDSA accounts are not supported/compatible

Account Deletion

Possible

Not possible

Contract and Gas Differences

FunctionHederaEthereum

Data Return on Static Calls

Data retrieval must be done through the relay

Data returned directly

Gas Fees

Charges at least 80% of gas fees regardless of transaction outcome

Gas fees depend on transaction outcome but typically 100% of the gas fees are charged and the unused portion is credited back

Contract Lifecycle

Contract entities can expire, rent fees may apply

No expiration or rent fees

Transactions and Queries Differences

FunctionHederaEthereum

Transaction Size Limit

6kb

No limit

Transaction Throttling

Transactions pending until future submission

Query Costs

Not free, can use mirror node for free queries

Free read-only calls

Mempools

Mempools available

Cost

Low, predictable fees (fraction of a cent)

Variable, often high gas fees

RPC Endpoint and Communication Differences

FunctionHederaEthereum

RPC Block Requests (e.g., eth_getBlockByHash* & eth_getBlockByNumber )

Return zero 32bytes hexadecimal value for the stateRoot

Returns the stateRoot hexadecimal value of the final state trie of the block

Communication

Requires communication with both consensus and mirror nodes

Direct communication with nodes

Note: Hedera Consensus and mirror nodes do not provide Ethereum RPC API endpoints.

Token and Fee Differences

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Native Tokens

Supports native tokens in addition to ERC-20 and ERC-721 token standards

All ERC token standards but primarily ERC-20 and ERC-721 tokens.

Fee Structure

Single gas price

Token Association**

No concept of token association

Keys for Token Functionality

Keys control access to token functionality (KYC, FREEZE, WIPE, supply, fee, and PAUSE)

No equivalent native functionality

**Note: Token Association only applies to native HTS tokens and does not affect ERC-20/721 tokens.

Other Differences

FunctionHederaEthereum

Precheck Failures

Typically single failure reason

HBAR Decimal Precision

Consistent 18 point decimal precision

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