Blockchain promises to help enterprises in a variety of use cases in their value chain. There are several projects leveraging Distributed Ledger and use of a smart contracts (Known as Chaincode in Hyperledger)
To further elaborate on this topic, lets evaluate the need of an enterprise grade blockchain.
Enterprises have confidential data / information which cannot be shared with the entire world even though it needs to be shared with multiple entities.
Enterprises have specific agreements/ deals with certain organizations whom I deal with and sharing this information to everyone in the network is not always possible.
In a largeenterprise, there are key processes in the value chain which can greatly benefit from Distributed Ledger Application and needs to integrate and co-exist with the other process within the enterprise.
All Enterprises want a solution which either makes the top line sales stronger or the bottom line more efficient - but not a solution which makes them irrelevant
The above are some of the typical concerns when it comes to public blockchain adoption for enterprises.
The answer to all those is an enterprise ready blockchain like Hyperledger. Before getting into specifics of Hyperledger, lets see the two fundamental types of blockchain network.
Public block chains In a public blockchain, all the nodes or participants are public and every node keeps the copy of the ledger and runs smart contracts. Public blockchain gives highest importance in anonymity, immutability and transparency over efficiency. An example public block chain is Bitcoin.
Permissioned block chains o Permissioned blockchain is a blockchain network where only authenticated users can participate in writing to the blockchain or perform transactions o Permissioned gives more importance on efficiency and immutability over anonymity and transparency. It’s a network operated by known entities or stakeholders in a value chain, with agreed set of rules and guidelines to inter-operate. Even though both these approaches differ in certain ways, there are many fundamentals both the public and permissioned blockchains share.
Similarities of Permissioned and public block chains o Both are decentralized peer-to-peer networks, where each participant maintains a replica of a shared append-only ledger of digitally signed transactions. o All the peers / nodes maintain a copy of the full ledger and there is no central authority which controls the blockchain o Both permissioned and public blockchains maintain the replicas in sync through a protocol referred to as consensus. o Both permissioned and public blockchains provide guarantees on the immutability of the ledger, even when some participants are faulty or malicious Hyperledger has evolved as the most promising blockchain technology for enterprises in many studies across the world. The section below gives an overview of Hyperledger Fabric.
Hyperledger Fabric is the World's most popular enterprise grade blockchain framework managed as an Open Source project by Linux foundation and adopted by world's largest Financial Services, Pharma , Healthcare and Retail Corporates
Hyperledger Fabric is: a Permissioned Blockchain - by Linux Foundation with codebase donated by IBM and supported by many large enterprises as members. Fabric is a plug and play implementation of blockchain technology designed as a foundation to develop high-scaling blockchain applications with a flexible degree of permissions
It uses the PBFT algorithm (Practical Byzantine Fault Tolerance Algorithm) for consensus
Hyperledger Fabric enables distributed blockchain application to be developed in a modular architecture
With Fabric, different components of Blockchains, like consensus and membership services can become plug-and-play - which can leverage many existing services of an enterprise.
It's not a cryptocurrency - nor there are miners who would benefit distributed computing
Business logic can be deployed and invoked to manage business transactions using chaincode written in Java or Go language
Hyperledger Fabric Capabilities:
Identity management o Identity and access management is the heart of permissioned blockchain. Hyperledger Fabric provides membership identity service that manages user IDs, authenticate participants on the network, and can use access control lists to provide additional layers of permission.
Privacy and confidentiality o Privacy and confidentiality by private channels is one of the key capability which differentiates it from many other blockchains. It helps to enable privacy of data for any competing business interests, perform confidential transactions to only a subset of participants within the network.
Efficient processing o For faster processing of transactions, the transaction execution is separated from transaction ordering and commitment. Once the execution is completed, the peers are freed up to take the next transaction execution, while an ordering service can take care or ordering for commit on the network.
Chaincode functionality o Chaincode applications contains the logic that is invoked by specific types of transactions on the channel. The capability to add business rules, external integration if required, additional access validations etc. to name a few, could be encoded in a chain code
Modular design o Hyperledger Fabric implements a modular architecture to provide functional choice to network designers. This approach helps enterprises to plug in algorithms for identity, ordering etc. based on specific needs.
Do you know of these components in Hyperledger Fabric?
Peer o It’s the instance which can update and holds the ledger as per the policies.
Endorser o Holds the ledger o Executes transactions / Chaincode o Signs the transactions
Orderer o Orders a transaction in the network (in blocks per channel) o Validates the transactions as per the signatures and policies
Certificate Authority (CA) o Enrolls users / issues certificates
Hyperledger promises to be the best variant of blockchain for enterprises to leverage the possibilities of the promising technology. You can get an in depth understanding of this technology in our full day hands on training sessions