The Blockchain revolution started with the promise of cryptocurrency, but it has since become a beacon of hope for a better and more secure future. As more and more people embraced the technology, it quickly became clear that the potential of Blockchain was far beyond the realm of cryptocurrency. Its underlying technology has the power to revolutionize many industries and processes, ushering in a new era of decentralized trust and transparency.
The current state of Blockchain technology has led to the acceptance of a wide range of applications, each with its own specialties and potential applications. These include enhancing security, transparency, decentralization, and anti-tampering. Hyperledger is simply an accelerated DLT built upon Blockchain’s limitations. This blog offers a glimpse into Distributed Ledger Technologies (DLTs) and Hyperledger while evaluating the excitement surrounding this new form of permissioned Blockchain.
|Table of Contents|
|What is Hyperledger?|
|How is Hyperledger different from Blockchain?|
|Potential Hyperledger Use Cases|
The interest in Blockchain applications outside of cryptocurrency has significantly increased over the last few years. The attempt to investigate the decentralized DLT or “Distributed Ledger Technologies” setups, together with their transparency, security, and anti-tampering features, is perhaps the most significant use among these. DLT is a digital system for tracking asset transactions in which the transactions and their specifics are recorded simultaneously in several locations. Distributed ledgers differ from conventional databases because they lack a central data store and administrative features.
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A distributed ledger’s nodes process and independently verify each item, creating a record of it and forming a consensus on its truth. Both static and dynamic data, for instance, financial transactions, can be recorded on a distributed ledger, such as a registry. Among distributed ledger technologies, Blockchain is a well-known case. To store data securely and limit access to only authorized users, DLT uses cryptography, together with cryptographic signatures and keys. Once stored, the data remains unchanged, like a story told and passed down through generations. Its permanence ensures that every revision and record of the past will remain for all time.
The primary distinction between DLT and conventional, centralized ledgers is the distribution of a copy of the ledger to each network node, allowing each node to access, edit, and verify the ledger, hence promoting trust and transparency.
What is Hyperledger?
Hyperledger is an open-source collaborative effort to improve Blockchain technologies across industries. It is a distributed ledger technology (DLT) platform that allows businesses to create and deploy blockchain-based apps, particularly smart contracts. It offers a platform for building robust and efficient distributed applications, enabling safe and dependable transactions and data exchange between various businesses.
Since the Linux Foundation founded Hyperledger in 2016, companies like IBM, Samsung, Intel, American Express, Visa, Microsoft, and Blockchain start-ups like Blockforce have contributed to the project. The relationship spans the manufacturing, IoT, banking, production-based sectors, and supply chain management.
Hyperledger serves as a central hub for several distributed ledger systems and frameworks. For example, a corporation may utilize one of Hyperledger’s frameworks to boost its commercial processes’ volume, speed, and efficacy.
Hyperledger supplies the essential infrastructure and protocols to develop Blockchain systems and applications. Developers can establish commercial Blockchain projects using the Hyperledger framework and technology, and everyone in the network is familiar with one another and can contribute to consensus-building processes.
The following layers are used by hyperledger-based technology:
- A consensus layer that determines the correctness of the transactions in a block and agrees on the order.
- A layer for smart contracts that handles and approves a communication layer that controls requests for transactions
- Peer-to-peer (P2P) message transit.
- An API that enables interaction between different apps and the Blockchain.
- Services for identity management that verify users’ and systems’ identities.
Hyperledger Sawtooth and Fabric are two of the most well-known Hyperledger frameworks.
How is Hyperledger different from Blockchain?
While the notion of Blockchain can be applied in numerous ways. On the other hand, hyperledger utilizes Blockchain as its database and has a different logic that depends on the platform or framework. It is essentially a technology that stores data.
Public and private blockchains are the two subcategories of Blockchain technology. An open, shared distributed ledger that is accessible to the general public and is not privately held is referred to as a public Blockchain. A network of computers validates and preserves data by using cryptography to record and verify transactions.
A shared, controlled ledger by a particular group or organization is referred to as a private Blockchain. A designated computer network verifies the records, and only those with access can access the data.
Its foundation is the Hyperledger Fabric, and Hyperledger is a Blockchain technology. It is a distributed ledger system that enables communication across different distributed ledgers and information sharing. Governments and banks are only two examples of the many institutions that employ them.
|Decentralized ledger||Distributed ledger|
|Mainly used for financial transactions||Used primarily for business transactions|
|Made up of blocks||MADE UP OF INTERCONNECTED LEDGERS|
|Focuses on powering cryptocurrencies||Focuses on developing business|
|Shared across a computer network||Developed in response to the limitations of Blockchain|
Potential Hyperledger Use Cases
The healthcare industry is one of the most straightforward and notable use cases for Hyperledger. It can construct a Blockchain network to help effectively regulate bookkeeping and registration operations in the healthcare domain. Hospitals and healthcare institutions can use the DLT to lessen patient wait times. The ledger can also facilitate the encryption and security of sensitive data and trace patients’ medication.
Education and Training
Education and training are two areas where the potential use cases of Hyperledger are very promising.
One such potential use case is in the area of educational credentialing. With Hyperledger, organizations can store, track, and verify educational credentials such as diplomas, certifications, and other qualifications. This can be done with a distributed ledger, as credentials can be stored securely and shared with authorized parties. This can also help to reduce fraud and ensure the authenticity of credentials.
Another potential use case for Hyperledger in education and training is through data management. Organizations can securely store and share data related to education and training activities with distributed ledgers. This data can be used for analytics, tracking the student performance, and insights into the effectiveness of course materials and programs.
Finally, Hyperledger can be used for course registration and scheduling. Organizations can use distributed ledgers to securely manage and track students’ course registration and schedules. This can enable organizations to manage resources better and enable students to move quickly through the registration process.
Supply Chain Management
Real-time tracking and supply chain transparency must be made a priority if the supply chain is to function better overall. With Hyperledger, businesses can be more confident in the accuracy and integrity of their supply chain data and the reliability of their supply chain operations.
Examplewise, IBM and Walmart have come together to tackle the issue of food-borne illnesses. To reduce the number of cases, they are working to trace food sources and give businesses and farms the resources to respond quickly when there is a dispute or an emergency. Their collaboration is a step towards ensuring that everyone can enjoy their food with peace of mind.
The platform, meant to be utilized by many food sellers worldwide, was developed by IBM using use cases from Hyperledger Fabric. They are actively testing the system, and thus far, they have traced five food items from their source to 25 different suppliers worldwide.
Trade and Finance
The trade finance sector may also be significantly impacted by the Hyperledger ecosystem. The benefits of Blockchain technologies for trade financing are numerous. One of the key advantages is quicker processing. According to an official press release from IBM, DLT will accelerate transactions and save operational costs. To make the platform capable of handling all trade transactions, IBM plans to deploy Hyperledger Fabric. This can help in an immutable and transparent recording of transactions, allowing for streamlined financial processing.
The use cases for Hyperledger can also be successfully implemented in the insurance industry. The industry has a large amount of paperwork that is difficult to keep up with. Further, given that this sector deals with a large sum of money, the rise in insurance scams and frauds is particularly concerning. As a result, initiatives built using Hyperledger can be helpful in the insurance industry. It can assist with ledger maintenance and automating insurance claim procedures. The auditing process will become more transparent and can help save much more effort and time.
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Scalability, Performance, and levels of trust
Using a modular design, Hyperledger divides transaction processing into three stages: distributed logic processing and agreement (also known as “chain code”), transaction commitment & validation, and transaction ordering. Several benefits result from this separation: Network performance and scalability are improved by requiring fewer levels of verification and trust for all node types.
Businesses must protect certain data elements from disclosure due to competition, protection laws, and regulations governing the confidentiality of personal data. This can be done by partitioning data on a Blockchain, providing this privacy. Data can be sent to only the people who need to know through channels.
An advantage of Hyperledger architecture’s versatility is that network designers can plug in their chosen component implementations. “Bring your own identity” is one of the most frequently requested modules. Some multi-company networks wish to reuse identity management rather than rebuild it. Consensus and encryption, where some nations have their own encryption standards, are other aspects of the architecture that can be added easily.
Hyperledger now only employs Crash Fault Tolerant (CFT) consensus algorithms, which cannot accept any malicious threat. Current research focuses on Byzantine Fault Tolerant (BFT) algorithms, which can withstand up to one-third of the existing network’s harmful threats.
The Hyperledger network system can be attacked by spoofing, which is detrimental since it masks the attacker’s original IP address ID with a legitimate one so that it cannot be recognized. The server is a faked system, and the attacker would gain access to the network system that houses all the information. In contrast, the server passes the information by pretending it is a genuine system.
Lack of transparency:
Hyperledger is not a public Blockchain, according to critics who claim it is permissioned. As a result, Hyperledger projects cannot be completely transparent. B2B and B2C scenarios that require only trustworthy players would embrace Fabric, according to its proponents. Thus, using a Blockchain without permission is no longer an option.
Hyperledger is a powerful tool with the potential to transform how businesses and organizations connect and trade. Its distributed ledger technology has the potential to revolutionize the way we conduct transactions, and its open-source nature makes it an extremely enticing technology. Hyperledger promotes trust and transparency in a safe and private environment, and its distributed ledger capabilities can decrease costs, streamline operations, and boost efficiency across a wide range of businesses. Hyperledger is an excellent solution for enterprises of all sizes due to its scalability and flexibility. Such also makes it an attractive choice for developers looking to create innovative applications and networks and can be a lucrative prospect for the future.
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