Hyperledger Architecture

A private blockchain is managed by the network administrator, and participants must get permission to enter the network, rendering it a permissioned blockchain. Because the network is owned by one or more entities, third-party transactions are required. Only the entities involved in the transaction will be aware of it, and no one else will be able to access it, i.e. transactions are private. The article focuses on discussing hyperledger architecture.

The following topics will be discussed here:

1. What is Hyperledger?
2. Hyperledger Design Philosophy Principles
3. Hyperledger Architecture
4. Overview of Hyperledger Projects
5. Hyperledger Tools
6. Hyperledger Libraries
7. Advantages of Hyperledger Architecture

Let’s start discussing each of these topics in detail.

What is Hyperledger?

Hyperledger is an open-source collaborative effort to improve blockchain technologies across industries. Hyperledger is a software development approach that is accelerating the adoption of blockchain technology by providing transparency, longevity, interoperability, and support.

History of Hyperledger:

• Hyperledger was founded in 2016 by 30 business members.
• The Linux Foundations created Hyperledger, a platform where developers and businesses can connect and collaborate to construct a blockchain foundation.
• Hyperledger currently has over 200 members, including IBM, Intel, Cisco, SAP, Baidu, and others.
• The Linux Foundations have also founded more than 70 open-source organizations based on Hyperledger, which Intel developed.

Hyperledger Design Philosophy Principles

One of the modular and extendable approaches principles This is critical to the success of enterprise blockchain development. This discusses in detail the approach that would most likely influence the technology’s implementation in the organization. This comprises several types of components and modules that are prioritized over interactions and functions.

1. Modular: This principle states that all components of all frameworks should be modular. Some of the components of hyperledger projects are as follows:

• Peer
• Channel
• chaincode
• Ledger

2. Highly secure: This principle is concerned with security, not just the crypto abstraction, but also the communication between network components and the framework that governs the permission nature of permissioned blockchains.Hyperledger architecture.

3. Interoperability: This principle addresses backward interoperability rather than interoperability among the multiple hyperledger project-powered blockchain systems. The parties connected through the network must be able to control the business model. Peer-to-peer networks that enable application connectivity are simple to manage.

4. Easy-To-Use APIs: This principle’s focus is on ensuring that blockchain systems have access to corporate networks, new systems, and current participants while not disclosing the intricacies of blockchain-powered business networks.

Hyperledger Architecture

1. Consensus Layer:

• Creates an agreement on the ordering and confirms the accuracy of the transaction database that comprises a block.
• The communication layer is used by the consensus layer to communicate with the client and other network peers.
• Confirms that all transactions in a proposed block are correct according to approval and consensus policies.
• Interfaces with the smart-contract layer and relies on it to validate the accuracy of an ordered transaction database in a block.
• They’re also widely utilized to synchronize data across a decentralized network and assure transaction consistency and transparency.

2. Smart Contract Layer:

• The smart contract layer verifies each transaction by guaranteeing that it adheres to the transaction’s policy and contract and invalid transactions are denied and may be removed from consideration for inclusion in a block.
• Smart contracts are classified into two types:
  • installed smart contracts-  Before the network is launched, installed smart contracts implement business logic on the validators.
  • On-chain smart contracts– On-chain smart contracts implement business rules in the form of a transaction that is committed to the blockchain and then invoked by subsequent transactions. The code that describes the business logic forms part of the ledger with on-chain smart contracts.
• Responsible for executing transaction requests and determining transaction validity through the use of business logic.
• In Hyperledger Fabric, a smart contract is a program known as chaincode. Chaincode can be developed in Go, JavaScript (node. js), and, in the future, additional programming languages such as Java that define a predefined interface. Chaincode is run in a secure Docker container that is separate from the endorsing peer process.

3. Communication Layer:

• Communication Layer is in charge of peer-to-peer message transfer between nodes in a shared ledger instance.
• The communication layer is used by the consensus layer to communicate with the client and other network peers.
• The algorithm must function exactly like a single node system, executing each transaction atomically one at a time.
• If communication does not fail, then each non-faulty node will finally get every submitted transaction.
• TLS is used for secure communication among nodes in the Fabric. TLS communication can employ both one-way (server only) and 2 different (server and client) authentication.

4. Data Store Abstraction:

•  Allows other modules to use alternative data stores.
• the actual private data is kept in a private database on authorized organizations’ peer nodes and accessed via chaincode on these authorized peers; and a hash of the secret data, which has been endorsed, sorted, and recorded to the ledgers of every peer on the channel.
• As state databases, the Hyperledger fabric supports LevelDB and CouchDB. LevelDB is the default state database integrated into the peer activity and stores chaincode data as key-value pairs. 
• CouchDB is an optional external state database that adds query capability when your chaincode data is modeled as JSON, allowing for rich queries of the JSON content.
• When a deploy transaction succeeds, the chaincode is installed “on” the blockchain.

5. Crypto Abstraction:

• Allows for the substitution of alternative crypto techniques or modules without disrupting other modules.
• Because Fabtoken, a new functionality in Hyperledger Fabric version 2.0 (alpha), allows you to generate native cryptocurrencies or coins.
• Besu Hyperledger is a public Ethereum codebase that is open source and may run on individual permissionless platforms or the Ethereum public network. The Ethereum Virtual Machines (EVM), consensus mechanisms, user-facing APIs, and monitoring are all included.
• CPU and GPU mining is supported by Hyperledger Besu and can be enabled using command-line arguments. Ethminer with both the stratum+tcp and getwork schemes was utilized for GPU mining support testing.
• It does not support cryptocurrencies such as bitcoin, but it functions by providing the infrastructure and standards required for the development of various blockchain-based applications and systems for industrial usage.

6. Identity Service:

• Allows for the formation of a trusted root during the configuration of a blockchain instance, the enrolment and registration of identities or systems entities during network operation, and the administration of changes such as drops, additions, and revocations. It also offers authentication and permission.
• The smart contract layer employs the identity services layer to authenticate and approve the entity requesting to execute the smart contract while processing the transaction.
• Hyperledger Fabric provides a personal identity service that handles user IDs and authenticates all network participants to enable permissioned networks. Access control lists can be utilized to add layers of permission by authorizing certain network actions.
• Certification Authorities are in charge of managing certificates (or CA). Fabric CA is Hyperledger’s Certification Authority 

7. Policy Service:

• Policy Services is in charge of policy management for the system’s numerous policies, including the endorsement policy, consensus policy, and group management policy. It communicates with and is dependent on another module to enforce the different policies.
• Fabric policies reflect the process through which members agree to approve or reject changes to the network, a route, or a smart contract. Policies are agreed upon by channel members when the channel is first set up, but they can also be changed as the channel evolves.
• Policies are one of the features that distinguish Hyperledger Fabric from other blockchains such as Ethereum or Bitcoin. Transactions in those systems can be generated and confirmed by any node in the network.

8. API: It enables clients and applications to interface with blockchains. there are three types of API used in hyperledger they are:

• Admin API: This class establishes a management link to a Hyperledger Composer runtime. The link can then be used to Install BusinessNetworkDefinitions and deactivate Business network definitions Refresh BusinessNetworkDefinitions and Ping the runtime to confirm it is up and running and properly configured In the connection profile storage, save a connection profile document.
• Common API: The Common API comprises the APIs that are used to access information about the Business Network to which you are connected as well as to establish new assets, participants, transactions, and events. It also offers APIs for obtaining information about these resources.
• Runtime API: All transaction functions have access to the Runtime API. It provides API access to build and issue queries, emit events, retrieve all forms of registries, get the current participant, and get the serializer to produce resources from JavaScript objects. – execute HTTP REST calls.

9. Interoperation:

• Allows separate blockchain instances to communicate with one another.
• Interoperability, supported by comprehensive data and transaction standards, is required to capitalize on this powerful technology. The food industry, for example, has made tremendous progress in leveraging data standards to promote food safety and product visibility use cases.
• Interoperability and integration are currently top-of-mind challenges in the blockchain sector.

Overview of Hyperledger projects

Below are some of the hyperledger projects:

1. Hyperledger Burrow

• Similar to the Ethereum Virtual Machine, Hyperledger Burrow offers a flexible blockchain client with a permissioned blockchain-based interpreter. Monax initially contributed and Intel co-sponsored. 
• Burrow’s declared goal is to support the operation of permissioned networks that are ‘open to the public.’ With Burrow’s permissions approach, there are numerous shades of grey in terms of network involvement.

2. Hyperledger Iroha

• Hyperledger Iroha is focusing on mobile application development and Sumeragi, a revolutionary chain-based Byzantine Fault Tolerant consensus mechanism. Soramitsu, Hitachi, NTT Data, and Colu are working on this project. 
• Hyperledger Iroha is a corporate blockchain platform built for distributed ledger infrastructure initiatives. The Iroha platform can be used to create an identity management system, such as national ID cards.

3. Hyperledger Indy

• Hyperledger Indy is a distributed ledger designed specifically for decentralized identification. Evernym contributed the indy code base that he created to the Sovrin foundation.
•  It offers tools, frameworks, and reusable components for developing and deploying autonomous digital identities based on blockchains or other distributed ledgers. Hyperledger Indy is a distributed ledger designed specifically for decentralized identity.

4. Hyperledger Fabric

• Hyperledger Fabric is led by IBM. Hyperledger Fabric is a plug-and-play blockchain technology implementation with a configurable degree of permissions. The Linux Foundation manages this private and confidential blockchain framework. 
• Hyperledger Fabric is a scalable, flexible architecture-based platform for distributed ledger applications. It is designed to allow for pluggable versions of various aspects and to manage the financial ecosystem’s complexities and intricacies.

5. Hyperledger Grid

• The Hyperledger Grid is an ecosystem of technologies, frameworks, and libraries that collaborate to allow application developers to choose which components are most suited to their industry or market model. Cargill is spending resources on the project’s development.
• The Hyperledger Grid platform is used to create supply chain solutions that integrate distributed ledger components. It offers an expanding range of tools that help to expedite the development of supply chain smart contracts and client interfaces. This is not a distributed ledger or a client application implementation.

6. Hyperledger Sawtooth

• Hyperledger Sawtooth is a flexible platform for developing, implementing, and running distributed ledgers, and it features a revolutionary consensus mechanism known as Proof of Elapsed Time. This consensus is suitable for large distributed validator groups while consuming few resources.
•  Intel is working on this project. Hyperledger Sawtooth is an open-source industrial blockchain-as-a-service platform that can run customized smart contracts without requiring knowledge of the core system’s underlying design.

Hyperledger Tools

Below are some of the hyperledger tools

1. Hyperledger Composer

• Hyperledger composer is a collaborative tool for creating blockchain business networks, facilitating smart contract development and implementation across a distributed ledger.
• Composer is a software development framework that makes it easier and faster to create Hyperledger fabric blockchain apps. A business person with little technical understanding can collaborate with a developer to build particular aspects using Hyperledger Composer.

2. Hyperledger Cello

• The goal of Hyperledger Cello is to apply the on-demand as-a-service methodology to the blockchain in order to simplify the effort required for building, managing, and ending blockchains. IBM, Soramitsu, Huawei, and Intel were the first to contribute to this project.
• Hyperledger Cello is a blockchain provisioning and operation technology that aids in the effective management of blockchain networks. Cello is a blockchain module toolbox and one of The Linux Foundation’s Hyperledger initiatives.

3. Hyperledger Explorer

• Hyperledger Explorer generates a user-friendly Web application that allows you to view, launch, deploy, and query blocks as well as any other relevant stored data on the ledger. IBM, Intel, and DTCC initially contributed to this initiative.
• Hyperledger Explorer is an open-source blockchain utility module that allows users to query various blockchain artifacts and advancements. It is intended to be used particularly on Hyperledger-based blockchain implementations.

4. Hyperledger Caliper

• Hyperledger Caliper is a blockchain benchmarking tool that enables users to assess the performance of a blockchain implementation against a set of predefined use cases. Huawei, Hyperchain, and Oracle have contributed to the Hyperledger Caliper performance benchmark tool for the Hyperledger project.
• By boosting the transparency and traceability of network transactions, Hyperledger Fabric networks can enhance supply chain processes. Companies with access to the ledger on a Fabric network can see the same immutable data.

5. Hyperledger Ursa

• Hyperledger Ursa is a distributed cryptography framework that allows people and projects to avoid duplicating cryptographic work. This project is being worked on collaboratively by fabric, Indy, and sawtooth developers.
• Within Project Ursa, developers have access to a complete library of modular signatures and symmetric-key primitives, allowing them to swap in and out different cryptographic methods through the setup and without having to rewrite their code.

Hyperledger Libraries

1. Hyperledger Aries: The Hyperledger Aries architecture supports blockchain-based peer-to-peer interactions. It provides a shared cryptographic wallet (safe storage technology, not a user interface) for blockchain clients, as well as a communications protocol for off-ledger transactions between those clients. This project makes use of Hyperledger Ursa’s cryptography support to provide secure secret management and decentralized key management capability.
2. Hyperledger Quilt: Hyperledger Quilt is a Java-based tool for interoperability between transparent and open that implements the ILP for atomic swaps. While the Interledger protocol is used to make transactions between ledgers, the ILP protocol is used to transfer value across non-distributed and distributed ledgers. The Interledger protocol’s standards and specifications are managed by the open-source community under the Global Internet Consortium umbrella.
3. Hyperledger Ursa: Within Project Ursa, developers have access to a complete library of modular signatures and symmetric-key primitives, allowing them to swap in and out different cryptographic methods through the setup and without having to rewrite their code. Ursa’s base library is supplemented with contemporary cryptography, such as pairing-based, threshold, and aggregate signatures.
4. Hyperledger Transact: Smart contracts can be executed using Transact regardless of the DLTs used. Transact accomplishes this by providing an extensible approach to developing additional smart contract languages known as “smart contract engines.” As a result, each smart contract engine includes a virtual machine or interpreter for smart contracts.

Benefits of Hyperledger Architecture

1. Productivity Enhancement: To accelerate project development, Hyperledger employs the division of labor technique. It determines everyone’s strong suits and, based on that, places them in specialized fields. 
2. Handling Of Intellectual Property: Hyperledger functions as a blockchain greenhouse by bringing vendors, developers, and consumers from all around the world together on a single platform. 
3. Data On A Need-To-Know Basis: Data partitioning on the blockchain allows for the privacy of data pieces. It provides physical isolation of sensitive data. Hyperledger-supported channels allow data to be distributed exclusively to people that need to know.
4. Rich Querying Capability: It is made up of a key-value database. CouchDB is also an option. It is a document database that stores content in JSON format. This allows for simple database queries. Its data model works with the current key/value programming approach.
5. Anonymity: The network only allows signature read-write sets to pass through. This helps to ensure anonymity because only the users and peers committing the transactions can see the transactions.

Limitations of Hyperledger Architecture

1. Lack of Developers: It lacks highly qualified programmers due to its origin, whereas Ethereum has a greater number of developers because of its popularity.
2. Lack of use-cases: It has shown a lack of use cases such that more a lack of awareness of technology and its possibilities, a scarcity of personnel and skill sets in IT and business.
3. Complex architecture: It has a sophisticated design, while Hyperledger, which is backed by IT titans, is only focused on enterprise transaction-based applications.apk 
4. Minimum APK: API allows client apps to communicate with Hyperledger Fabric blockchain network smart contracts, but with fewer APIs.
5. Less fault tolerance: The job of Byzantine fault tolerance is to ensure that each peer has the same list of transactions on its ledger, however, it is not suited for network use.

Application of Hyperledger

1. Finance: Hyperledger can be used to streamline the settlement of transactions, improved liquidity, and provide increased transparency by eliminating the need for accounts on particular payment systems at a low cost.
2. Healthcare: Hyperledger can be utilized to cut expenses, improve patient care, and increase data accessibility.
3. Supply Chain: Using Hyperledger, organizations may create initiatives that aim to limit the prevalence of counterfeit goods while also tracing the provenance of components and services.
4. Insurance: The Insurance firm can refer to the transaction data recorded in the ledger using Hyperledger. Hyperledger Fabric may also use chain code to speed up claim processing and automate payment.
5. Digital payment: Interledger and other Hyperledger applications have the potential to set new standards in the finance sector. More importantly, it has the potential to revolutionize two-party cross-border payments.

Conclusion

• Quality Business solution: Hyperledger’s strategic purpose of developing business solutions clearly distinguishes it from currency-based blockchain systems. With scalability as a significant advantage, Hyperledger fabric enables the creation of nearly any form of a corporate network.
• Open source: Anyone in the community is free to view, edit, and distribute the code in any way they see fit. People from all over the world are welcome to attend and contribute to the development of the source code.
• Secure: The identities of all participants have been verified. And only authenticated members have access to the ledger. This benefit is most valuable in industries where consumer data must be kept confidential, such as banking and insurance.