Hyperledger Fabric : A DLT for Business Applications

Rajeev Sakhuja
A free video tutorial from Rajeev Sakhuja
IT Consultant, Mentor, Innovation evangelist
4.5 instructor rating • 6 courses • 51,578 students

Lecture description

Students will learn about 4 characteristics desired in a DLT technology geared towards adoption by businesses. By end of this lecture students will have a high level understanding of why Hyperledger Fabric is suitable for building DLT Business applications.

Learn more from the full course

Blockchain Development on Hyperledger Fabric using Composer

Learn to develop Network Applications on Hyperledger Fabric & Composer Technology

08:21:32 of on-demand video • Updated July 2020

  • Develop Hyperledger Blockchain Applications using Composer Framework
  • Model the Blockchain Applications using Composer modeling language
  • Evaluate if a business application will benefit by adoption of Distributed Ledger Technology
  • Develop front end (Client) applications using Composer API
  • Leverage Composer REST Server to design a web based Blockchain solution
  • Describe the various components of Hyperledger Fabric Technology (Peers, Orderer, MSP, CA ...)
  • Design Hyperledger Fabric Composer Business Network Application (NOT the infrastructure)
English Distributed Ledger technologies for business applications. In this lecture I'll talk about the characteristics that are desired in a distributed Ledger technology for creating business applications. At the end of this lecture you will understand at a high level why hyperledger fabric is suitable for creating distributed ledger technology based business applications. Hyperledger fabric is a distributed Ledger technology for the business. The keyword here is the business that differentiated the hyperledger fabric from other Blockchain technologies that are geared more toward the public domain. Two such dominant public domain distributed technology networks are the Ethereum and the Bitcoin networks. Business application would require the distributed ledger system to have certain characteristics which are very different from the characteristics desired in a public domain distributed Ledger technology. There are four characteristics that makes hyper ledger fabric suitable for implementing DLT based business applications. Hyperledger fabric is a permission network. It supports confidential transactions and to participate one does not need cryptocurrency and it is programmable. With these characteristics hyperledger fabric establishes trust, transparency and accountability among the participants in the network. Hyperledger fabric allows businesses to create permission network. The hyperledger fabric provides ways by which owners of the network can restrict who can access and do what on the network. It requires participants in the network to be known and to join the network the participants have to get permissions from some authority. Compare this with the public DLT platform such a ethereum where anyone can participate on the network as it is a permission-less network. Hyperledger fabric provide ways by which the rules are assigned to the participant and actions that can be taken by each of those roles are restricted by way of access control list. Transactions are validated by a known set of validators that the participants trust since all participants are known in a business setting. It is easy to identify or establish those trust authorities or transaction validators. Compare this with a public network where everyone is anonymous and there is lack of trust among the participants. That is why in those public networks such as Ethereum resource intensive validation schemes are used. Another characteristics that is desired for business applications is the confidentiality of the transactions. Not all transactions are desired by the business to be visible to all. Hyperledger fabric puts participants in control or the visibility of their transactions. Consider the scenario where A, B and C are engaged in carrying out business on a DLT based application. So any transaction initiated by any of these entities will be visible to all of these participants. Now if B and C would like to engage in some kind of business activity that requires them to restrict the visibility of the transaction to only two of them then they can create a private channel to carry out such business. Any transaction initiated by B or C on this private channel will be visible only to be B and C. Business using hyperledger fabric can create and participate on multiple such private channels or networks. Hyper-ledger fabric does not have any concept of crypto currencies. Let me explain to you why it's not needed by comparing it with the public distributed ledger platform such as ethereum. Now ethereum uses cryptocurrency to incentivize the distributed ledger network. Transactions on ethereum are validated by miners who get paid in cryptocurrencies that they can exchange for the fee. This kind of transaction validation scheme is not needed in case of a business DLT application. In other words there is no need to incentivize the network using crypto currencies. Hyperledger fabric allows participants to decide on who the validators would be and what kind of policies will be used for transaction validation. Typical public domain transaction validation schemes such as proof of work which is very resource intensive is not applicable and is not needed for distributed ledger business applications. Hyper-Ledger fabric is programmable by way of the construct called the chain code. Conceptually chain code is the same as the smart contract on other distributed ledger technologies. Businesses can use the chain code to automate the business processes Chain code sits next to the ledger and participant of the network can execute the chain code in the context of a transaction that gets recorded in the ledger. Automation of business process by way of chain code leads to higher efficiency, transparency and greater trust among the participants. Let's summarize. There are four characteristics that make hyper-ledger fabric ideal for building distributed ledger based business applications. Hyper-Ledger fabric allows participants to create permission distributed ledger technology based business applications. Participants may leverage the private channels for managing confidentiality of the transactions. That is transaction visibility is restricted to select parties in the network. Now unlike public networks, hyperledger fabric business applications do not require mining and expensive computations for transaction validation. There is no concept of cryptocurrency in hyperledger fabric. The chain code construct available on hyper ledger fabric can be used for automation of the business processes and for building business logic. The chain code is conceptually the same as the smart contract on other distributed ledger technology platforms.