Mahayana: Mahayana Buddhism developed its own canon of scripture, using much that was included in the Theravada canon, but adding other Mahayana Sutras which contain the bases of their peculiar beliefs. Among these the best known and most widely used are the famous Lotus Gospel and the SukhavatiVyu-ha which are the scriptures especially of the pure land sects. The path followed by the Gautama is thus the Mahayana - ‘the great vehicle’ or vehicle of the Bodhisttva (bodhisattva-yana). The Mahayana movement claims to have been founded by the Buddha himself, though at first confined to a select group of hearers. Many of the leading teachers of the new doctrines were born in south India, studied there, and afterwards went to the North; one of the earliest and most important being Nagarjuna and other major sutras circumstantially connected with the south.
During the life-time of the Blessed One (Buddha), he was already highly venerated and his aid was invoked by his disciples in their spiritual struggles. A simple cult developed about the relics of the Blessed One very early. His body was burned, and the ashes and bones distributed among the disciples. Shrines were built to house those relics, some of them very elaborate and expensive; for example, the very impressive one that has his head. Images of the Buddha representing him in mediation under the Bodhi tree became common. At first they were conceived of simply, as subjectively helpful. Veneration of the relic had the effect of calming the heart. Later arose the belief that such a reverential act was good in itself and would result in securing merit. Pilgrimages made to sacred spots associated with him would likewise benefit one and would result in karma.
Given the characteristic Hindu background, it was natural that for all practical purposes Gautama should soon become a god, though not theoretically called so. Given likewise the characteristic Hindu speculative philosophical interest, attempts to explain the relation of the Buddha to the ultimate realty of the universe naturally began to be made, almost from the start. According to the Mahayana, reality is beyond the rational intellect or beyond the four categories of understanding. And they say that the world is real and relative, and the absolute reality only appears as the manifold universe. Plural is not real. The Mahayana concept of liberation is not merely for one, but is meant for all. The ideal Bodhisattva defers his own salvation in order to work for the salvation of others. And they also hold that nirvana is not a negative state of cessation of misery, but is positive bliss.
Hinayana: The Hinayana or lesser vehicle has been more moderate in its doctrine of the person of the Buddha. He is theoretically neither a god nor a supernatural being. His worship or veneration is helpful, but not essential, to the achievement of the salvation goal. This is to be reached by something like the process Gautama taught, namely, meditation on the four noble truths and the keeping of the Dharma; in short, becoming a monk, for one could not carry out all the requirements and live an active life in the day-to-day world. Thus the number to whom salvation lay open was comparatively small. It was this fact which caused the followers of the Mahayana school to call the older school the ‘little vehicle’. Not many could ride at a time. Mahayana, on the other hand, made salvation universally possible for achievement.
The goal of the Hinayana was to become an Arhat, that is, to arrive at Nirvana in the present life; an ideal of salvation of the self, with no reference to the welfare of others, and thus an egoistic ideal. That of Mahayana was of a more altruistic sort. It was to become a Buddha; and theoretically, at least, anyone might aspire to reach Buddha-hood. To be sure, he would not reach it in one single lifetime, but there was elaborated a definite series of steps, ten in all, through which one must pass before arriving at the goal. One who had taken the vow of future Buddha – hood was called a Bodhisattva, and he need not be a monk. Here was a clear-cut difference from the Hinayana School - a layman might aspire for the highest goal. But the most notable difference was the fact that in becoming a Bodhisttva , one became ( after passing a certain stage) a great ‘cosmic helper’ or saviour, dedicated to the saving of mankind. Men came to rely on the help of such ‘great beings’ in their search for freedom.
Along with this idea came a change in the conception of the Buddha. Gautama became but one in a great line of Buddhas, behind whom stood the eternal Buddha – the Dharmakaya - a conception similar to the old Hindu Brahma manifest in Vishnu or Siva. There were five principal Buddhas, of whom Gautama was one. One Buddha, Maitreya, was yet to come.
To these Buddhas is accorded worship, as also to the Bodhisattvas, or great beings who are known to be especially helpful. To them prayer is made; upon them centre love, loyalty, and devotion. One among the (Buddhas), Amitabha, came to be in an unusual degree the object of faith and devotion, and to him prayers were made. His powerful name was repeated countless times, for so meritorious was he that there was a strange potency in its mere repetition. According to them, you must be a light unto yourself (atmadipo bhava) and they also say that liberation is meant for a person and by oneself. The Arhathood is attained through a difficult path of self help and Nirvana is extinction of all misery.