Hyperledger Fabric: A Permissioned blockchain

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Hyperledger Fabric: A Permissioned blockchain

The latest buzz in the tech world is all about blockchain. A distributed ledger technology, blockchain has the potential to revolutionize the way we do business. With its secure, tamper-proof, and decentralized nature, blockchain is being hailed as the “internet of value.” While there are many different types of blockchain platforms, one of the most popular is Hyperledger Fabric.
Developed by the Linux Foundation, Hyperledger Fabric is a blockchain
framework that is suited for use in enterprise settings.

Hyperledger Fabric is a permissioned blockchain framework implemented in Golang and designed for enterprise use cases. It is one of the six Hyperledger projects hosted by the Linux Foundation. The design philosophy of Hyperledger Fabric is focused on modularity and privacy. The ledger is partitioned into channels, where each channel has its own private transaction ledger. While the confidentiality of the data is ensured through the channels, the modularity allows for different applications to be built on top of the Fabric blockchain.

In this article, we will take a closer look at Hyperledger Fabric and its
features. We will also discuss its potential to overtake other distributed ledger technologies.

Hyperledger Fabric: Unique distributed ledger technology

The Hyperledger Fabric framework encourages the use of a modular structure for developing enterprise applications. The underlying architecture’s flexibility means it may be tailored to an organization’s specific needs.

Businesses must utilise a permissioned blockchain rather than a permissionless blockchain to employ Distributed Ledger Technology.
Hyperledger’s permissioned network doesn’t require trust or anonymity since all participants are known.

Each blockchain node must generate the same result for the same input in a smart contract. Hyperledger Fabric allows chaincode execution before
transactions are organised and verified on a few nodes dependent on
endorsement policy. This allows Fabric to utilise Java and Node.js instead of domain-specific languages like Solidity.

The Hyperledger Fabric’s permissioned and untrusted governance mechanism reduces the likelihood of a hostile assault. As a pre-set endorsement policy records all blockchain transactions.

Hyperledger Fabric: Unique distributed ledger technology

All nodes in a permissionless, public blockchain system may access and edit data, compromising privacy and secrecy. Fabric’s channel architecture
addresses privacy and confidentiality challenges. Only participating nodes may access data transactions through chaincode in channel architecture. MSP controls verified identity permits while the PKI identity mechanism manages all participants’ digital identities.

The Hyperledger Fabric network has a pluggable consensus method, which
distinguishes it from other blockchain networks. Fabric framework enables organisations to tailor the network in a manner that better meets their needs than previous methods. A business may choose a model that improves the performance of its fault tolerance systems.

In a blockchain network, the smart contract design, often known as “chain
code” on Hyperledger Fabric, entails the validation of transactions, their
sequencing, and their execution in accordance with their order.

Consensus Protocols of Hyperledger Fabric

The consensus in Hyperledger Fabric network is a process where the
nodes in the network provide a guaranteed ordering of the transaction
and validating those block of transactions that need to be committed to
the ledger.

Verifies that all transactions in a proposed block are valid in accordance with endorsement and consensus standards. Consensus on the proper sequence and, by extension, the outcomes of the action to be taken (implies agreement on global state). Uses an interface to communicate with the smart contract layer and rely on it to ensure that the transactions in a block are executed in the right order.

To ensure consensus across nodes, consensus must meet two criteria: safety and liveness. For a system to be considered safe, all of its nodes must receive the same set of inputs and produce the same set of outputs. Because of this, if communication does not fail, all healthy nodes will ultimately get all submitted transactions.

Voting based consensus and Byzantine Fault Tolerance

Hyperledger Fabric makes use of the permissioned voting-based
consensus. The operating assumption is that business networks will
operate in an environment of partial trust. Voting-based algorithms
typically require nodes to transfer messages to each other. This results
in a trade-off between scalability and speed.

Endorsement, Ordering, and Validation are the three stages that make up
the Hyperledger Fabric voting based consensus process. The policy that
participants must adhere in order to endorse a transaction is what
drives endorsement. The ordering step will get the transaction’s
endorsement and confirm that the order should be committed to the
ledger. The validity of the outcome is checked by examining a batch of
sorted transactions that have been previously validated.

In a blockchain network, all non-malicious entities have the same blockchain state. Hyperledger Fabric should use a BFT algorithm to jointly control the orderer service. Because one organisation may not be trustworthy, controlling the orderer isn’t enough. After all, blockchain allows firms to interact while only partly trusting one other.

At IntelliBlock, we have implemented many use cases based on Hyperledger Fabric. If you are a traditional company and looking for an enterprise grade blockchain network integration then contact us!

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