Hyperledger Fabric Developer Slides 2020

Hyperledger Fabric
Developer Revision 6.0
www.blockchaintrainingalliance.com
Who is this course for?
• Familiar with C#, Java, JavaScript, or other C-derivative language

• Some familiarity with Linux (Ubuntu) command line operations
• An understanding of blockchain fundamentals such as:
• Immutability
• Group Consensus
• Cryptographic Hashing
• Smart Contracts
• Data Transparency
• Developers > Admins
• Hyperledger administration / operations is an entirely different course
Page 3 © Copyright 2020 | All Rights Reserved

What are the goals for this course?
• Learn the difference between anonymous and permissioned

blockchains
• Identify the value of permissioned blockchains in the enterprise
• Identify and evaluate use cases in the environment around you
• Identify solution objects for a given use case
• Create a working proof-of-concept in Composer
• Deploy your POC to a Fabric / Composer environment for further
testing and development

Blockchain 101
Blockchain Basics
 Think of a “Block” as a sheet of paper with 25 recorded transactions.

 Each of the 25 lines has a complete transaction record
 Each record is complete with time, data, all transaction details.
 When a sheet is filled (25 transactions), the Nodes “validate” the
transactions on the current page and post it on the Blockchain.
 All Nodes must agree (have Consensus) on the transaction content

What is in a Block?
 A ‘magic number’ (0xD9B4BEF9) to show it’s a Bitcoin block
 A size number to specify how much data is coming next
 Some metadata:
 A version number of the block format
 A link to the previous block that came immediately before it
 Merkle root of all the transactions in the block
 Timestamp of when the block was created
 Mining difficulty (more about this later)
 Nonce for proof-of-work (more about this later)
 All the data of the 25 transactions recorded in this block

The “Blocks” of a Blockchain
Transactions are grouped

together into a Block
25 Transactions per Block
0 1 2 3 4 5

Blockchain Blocks
0 1 2 3 4 5
 Blocks are numbered in ascending order, 0 is first/oldest
 The number is the ‘height’ of the block
 Arrows only go from newer to older blocks - a block only

directly links to the one immediately before it
 Once a block is stored, it’s read-only (which is why it doesn’t

link to the ones after it - that would require you to update it)
Blockchain Blocks
0 1 2 3 4 5
 Blocks store data, in Bitcoin, it’s the transactions, but it could

be any digital data
 Blocks are created periodically (on average, 10mins for

Bitcoin) by a process called ‘mining’
 A block represents a set of events that have occurred over a

particular time frame (usually, since the previous block)

Blockchain Blocks
0 1 2 3 4 5
 Blocks aren't identified by their height, but by their id
 Block id is the hash of the data in the block

 0=000000000019D6689C085AE165831E934FF763AE46A2A6C172B3F1B60A8CE26F
 1=00000000839A8E6886AB5951D76F411475428AFC90947EE320161BBF18EB6048
 2=000000006A625F06636B8BB6AC7B960A8D03705D1ACE08B1A19DA3FDCC99DDBD
 Block id is a digital fingerprint of that block

MERKLE TREE - HASH OF HASHES
Top hash
 Multiple blocks of data, in Hash Hash

a certain order, into a 0 1
single hash
Hash Hash Hash Hash
 Allows you to work out 0-0 0-1 1-0 1-1
which block has changed

Data Data Data Data
block block block block
1 2 3 4

Blockchain IS
 A record keeping system – of Any Asset
 to record the transactions of importance (Non-

Monetary)
 Update to a medical record

 Transfer of ownership
 Training certification on Blockchain
 Recording important single-party announcements

How Blockchain Works?

Consensus Algorithms
Proof of Work Proof of Stake Solo
Kafka / Proof of
BFT / PBFT
Zookeeper Elapsed Time

Summary Proof of Work (PoW)
 Proof of Work Consensus

 When a block is full, each node competes to solve a
guessing game problem
 This problem is non-computational, random guesses are
most efficient
 Miners try to guess the “nonce”
 All block data plus the current guess (nonce) are run
through a cryptographic hash

 If the result matches the current level of “difficulty”, the
miner has guessed the right answer
 The miner with the answer shares it with all other miners,
Miners will confirm the answer is correct by using the
nonce with their block data to try and get the correct result

Proof of Stake (PoS)
 Proof of Stake Consensus

 Proposed as an alternative to Proof of Work
 Attempt to overcome scalability concerns imposed by PoW
consensus
 Removes the guessing game from consensus
 Mining no longer requires specialized and powerful hardware
 Many feel that specialized hardware requirements lead to
centralization
 Blockchain is about de-centralization
 Less energy intensive form of consensus

 Addresses concerns about “green” mining

Other Consensus Mechanisms
 Other consensus mechanisms

 Proof of Capacity (aka. Space)
 Pay to play with hard drive space or memory
 The most space you ‘stake’ the better your odds of being
selected to mine the next block

 Consensus algorithm generates large data sets called ‘plots’
which consume storage

 Major criticism – this method has no real deterrent for bad
actors

Other Consensus Mechanisms
 Other consensus mechanisms

 Proof of Elapsed Time
 Created by Intel to run on their trusted execution environment
 Similar to PoW, far more energy efficient
 Major criticism – requires trust in Intel, places power back in
the hands of a central authority
 Proof of Authority
 Uses a set of “authorities” – nodes that are explicitly allowed to
create new blocks and secure the blockchain

 Replacement for PoW - Private blockchains only
 Earn the right to become a validator/authority

Types of System
i) Centralized iii) Distributed
ii) Decentralized

Single (no consensus) Authority

Multiple (Flatter) Authorities

Distributed System Authorities

Types of Blockchain Network
 Public vs Private
 Who can write data to the Blockchain?
 Public – everyone can add a record
 Private – only certain participants can write data
 Open vs Closed
 Who can read data from the Blockchain?
 Open – everyone can read Blockchain data
 Closed – only certain participants can read data

Public or Private Blockchain
 Hyperledger vs Ethereum
 These are discussion points, NOT absolutes
 Ethereum
 Music and content distribution
 Digital currency or asset-backed token
 Blockchain-enabled mobile data service
 Gambling and on-line gaming
 Authoring, editing, and amending a piece of legislation
 Group consensus is needed/required

Public or Private Blockchain
 Hyperledger vs Ethereum
 These are discussion points, NOT absolutes
 Hyperledger
Supply Chain
Supplier / Manufacturer inventory management
Managing internal business processes across
geographically distributed locations
Allowing elected officials to vote on initiatives without
being present

Public vs. Private Blockchains

Blockchain Decision Matrix
Public
Public & Closed Public & Open
• Voting • Currencies
• Voting records • Betting
• Whistleblowers • Video games
Private & Closed Private & Open
• Construction • Supply Chain

• National defense • Government
• Law enforcement financial records
• Military • Corporate earning
Private
• Tax Returns statements
Closed Open

Benefits of Blockchain
 What are the benefits of Blockchain?

 Publicly verifiable
 Accountability to customers and end-users
 (permission-less)
 Secure
 Control who sees what data when (permissioned)
 Quality assurance
 Track origin of all supply chain components
 Example – Food origin and/or safety recalls
 Smart Contracts as a replacement for middlemen operators
 Lower transactions costs
 Removing middlemen reduces cost

Blockchain for Business
Problem
Problem - Diﬃcult to monitor asset ownership and transfers in a trusted
business network
31
Inefficient, expensive, vulnerable

Solution
Solution – a permissioned, replicated, shared ledger
32
Consensus, provenance, immutability, finality

Let’s Recap
• What is blockchain? (public, open, permissionless)
• Decentralized ledger
• Can store any type of data
• Shared ledger
• Immutable
• Anonymous
• Fully-Transparent
• Group Consensus
• Nodes only verify data was recorded correctly
• No ability to verify truth of the data itself
• Smart Contracts
• Ability to automate processes
• Blockchain as workflow / BPM

Blockchain for Business
• Are these properties good or bad?
• Decentralized ledger
• Can store any type of data
• Shared ledger
• Immutable
• Anonymous
• Fully-Transparent
• Group Consensus
• Nodes only verify data was recorded correctly
• No ability to verify truth of the data itself
• Smart Contracts
• Ability to automate processes
• Blockchain as workflow / BPM

Why Not a Database
 Blockchains solve specific problems:
 Fully distributed - highly fault tolerant

 No centralized authority
 3rd party trust without trust
 Low barrier to entry - computer + internet = win
 Instant, Global transactional capability
 No double spending
 Very low transaction costs
 Traditional Databases have centralized control and do not perform

these functions.

Four elements
characterize Blockchain
Replicated ledger Cryptography

● History of all transactions ● Integrity of ledger
● Append-only with immutable past ● Authenticity of transactions
● Distributed and replicated ● Privacy of transactions
● Identity of participants
Consensus Business logic

● Decentralized protocol ● Logic embedded in the ledger
● Shared control tolerating disruption ● Executed together with transactions
● Transactions validated ●
From simple "coins" to self-enforcing
"smart contracts"

Industrial Blockchain Benefits
Why?
Reduce costs and complexity Trusted recordkeeping
Improve discoverability Shared trusted processes
37

Business Networks, Markets &
Wealth
What?
• Business Networks benefit from connectivity

– Connected customers, suppliers, banks,
partners
– Cross geography & regulatory boundary
• Wealth is generated by the flow of goods &
services across business network
• Markets are central to this process:
– Public (fruit market, car auction), or
– Private (supply chain financing, bonds)
38

Transferring Assets, building Value
What?
• Anything that is capable of being owned or

controlled to produce value, is an asset
• Two fundamental types of asset
– Tangible, e.g. a house
– Intangible e.g. a mortgage
• Intangible assets subdivide
– Financial, e.g. bond
– Intellectual e.g. patents
– Digital e.g. music
• Cash is also an asset
39
– Has property of anonymity

Types of Asset

Participants, Transactions &
Contracts
What?
• Participants - members of a business

network
– Customer, Supplier, Government, Regulator
– Usually resides in an organization
– Has specific identities and roles
• Transaction - an asset transfer
– John gives a car to Anthony (simple)
• Contract - conditions for transaction to
occur
– If Anthony pays John money, then car passes
from John to Anthony (simple)
– If car won't start, funds do not pass to John (as
decided by third party arbitrator) (more
41
complex)

Blockchain Business Requirements
What?
Append-only distributed Business terms embedded

system of record shared in transaction database &
across business network
Shared Smart
executed with transactions
Ledger Contract
Ensuring appropriate All parties agree to

visibility; transactions are network verified
secure, authenticated & Privacy Validation transaction
verifiable
Broader participation, lower cost, increased efficiency

42

Shared Ledger
What?
• Records all transactions across

business network
• Shared between participants
• Participants have own copy through
replication
• Permissioned, so participants see
only appropriate transactions
• THE shared system of record
43

Smart Contract
What?
• Business rules implied by the

contract . .
• . . embedded in the Blockchain &
• executed with the transaction
• Verifiable, signed
• Encoded in programming language
• Example:
– Defines contractual conditions under
which corporate Bond transfer occurs 44

Privacy
What?
• Ledger is shared, but participants require

privacy
• Participants need:
– Transactions to be private
– Identity not linked to a transaction
• Transactions need to be authenticated
• Cryptography central to these processes
45

Validation
• Transaction verification & commitment

• When participants are anonymous What?
– Commitment is expensive
– cryptographic mining provides verification for
anonymous participants but at significant compute
cost (proof of work)
• When participants are known & trusted
– Commitment possible at low cost
• Multiple alternatives
– proof of stake where fraudulent transactions cost
validators (e.g. transaction bond)
– multi-signature (e.g. 3 out of 5 participants agree)
• Industrial Blockchain needs “pluggable”

consensus
46

Where are private blockchain a
good fit?
• Large business networks / consortium
• Each participant wants to retain ownership/control of their data
• Many different audience types (each of whom will need to see or edit
different parts of the data)
• Desire to standardize (and automate) business processes
• Process requires audit, need to prove you did what you said you did
• Need a permanent record of how business assets evolve over time
• Need a system of record between multiple organizations / groups

Where are private blockchains not a
good fit?
• Requirement for high performance
• Millisecond transactions, tens or hundreds of transactions per second
• Use within a single organization
• Use case can be handled by a simple database
• Little to no need for data after transaction is complete
• No audit required

Hyperledger Use Cases
• Letter of Credit
• Purchase Fulfillment
• Smart Devices, appliances making their own purchases
• Supply chain
• Aircraft Maintenance
• National Association of Realtors
• Mercedes-Benz North America
• Walmart / Carrefour
• Food provenance
• FedEx
• Contracted last-mile delivery tracking

Actors in a Blockchain Solution
R Regulator
U
B2B Blockchain
performs transactions User
A
oversight
Blockchain
Architect
designs ✓
Membership
D Blockchain accesses
security
Services
Blockchain
creates certificates
Developer
applications
access to
operates data Traditional
Data
access to logic Sources
O
Blockchain
Traditional
Network
Processing
Operator
Platforms 3

Actors in a Blockchain Solution
Blockchain Responsible for the architecture and design of the blockchain solution
A
Architect
The business user, operating in a business network. This role interacts with the Blockchain using an
Blockchain application. They are not aware of the Blockchain.
U
User
The overall authority in a business network. Specifically, regulators may require broad access to
Blockchain
R the ledger’s contents.
Regulator
Blockchain The developer of applications and smart contracts that interact with the Blockchain and are
D used by Blockchain users.
Developer
Blockchain Manages and monitors the Blockchain network. Each business in the network has a Blockchain
Operator
O Network operator.
Membership Manages the different types of certificates required to run a permissioned Blockchain.
✓
Services
Traditional
An existing computer system which may be used by the Blockchain to augment processing. This
Processing
system may also need to initiate requests into the Blockchain.
Platform
Traditional An existing data system which may provide data to influence the behavior of smart contracts.
Data
Sources

Summary of key concepts
D
Blockchain Application Smart
Ledger
Developer Contract
f(abc); …
Traditional Systems
Traditional
Processing Events Integration
O Platforms
Data
Blockchain
Sources !
Operator
Peers Consensus Security
A
Blockchain Business Design
Architect concerns Tradeoffs

The Blockchain Developer
D
Blockchain
Developer
Blockchain developers’ primary interests are…
Application Smart
Contract
f(abc);
…and how they interact with the ledger and other systems of record:
Traditional Traditional Systems

Ledger Processing Data Events Integration
…
Platforms Sources
!
They should NOT have to care about operational concerns, such

as:
X Peers Consensus Security
5
3

How applications interact with the ledger
Client
Blockchain develops
Application
developer D
SDK
develops submits
Smart emits
Contract !
event
accesses
‘get’, ‘put’, ‘delete’ recorded
Ledger
block
emits
txn txn
!
event
World state txn
Blockchain
Peer

Hyperledger Fabric
© Copyright 2017 | All Right Reserved

Hyperledger is an Umbrella

Hyperledger History
• Released December 2015
• Open-source project, managed by the Linux Foundation
• Managers of the Linux kernel, Node.js, and more!
• “Hyperledger” is an umbrella term for many projects
• However, when most people use the term “Hyperledger” they’re talking
about Fabric & Composer
• This course focuses on development using Fabric & Composer
• 220+ corporate partners and sponsors
• IBM is the most vocal

Hyperledger Projects
• Frameworks
• Fabric
• A highly modular blockchain platform.
• Sawtooth
• Another highly modular platform which offers a unique consensus method – Proof of
Elapsed Time.
• Iroha
• A blockchain platform offering unique consensus and ordering, and multi-signature
support.
• Burrow
• Allows an EVM to be embedded in a Fabric / Sawtooth solution.
• Indy
• A blockchain platform built for identity management. Used for platform interoperability.

Hyperledger Projects
• Toolsets
• Composer
• Tool for building blockchain business networks and smart contracts.
• Quilt
• Toolset for platform interoperability.
• Explorer
• Used to view or query blocks and transaction history data on the ledger.
• Caliper
• Blockchain benchmarking and performance tuning tool.
• Cello
• Toolset for deploying blockchain infrastructure as a service.

Some Hyperledger members

How are permissioned blockchains different?
• “Public” vs “Private”
• Ethereum vs Hyperledger
• Anonymity vs Identity
• Permissionless vs Permissioned
• Native currency vs no currency
• Native ability to create coins/tokens vs. creating coins/tokens from scratch
• Currency does not provide incentive in Hyperledger solutions

How are permissioned blockchains different?
• Group consensus vs. participant consensus
• Solidity smart contracts vs JavaScript chaincode
• No mutable storage vs mutable storage (world state database)
• No native object modeling vs Composer Modeling Language
• Simple network config vs complex network config
• Transactions fees (gas) vs no transaction fees
• Financial incentive towards honesty vs employment / business
incentive towards honesty

What Hyperledger Fabric?
‣ Blockchain fabric and distributed ledger framework for business

– One of multiple blockchain platforms in the Hyperledger Project
– First "active" platform in Hyperledger project (Mar. '17)
– First "production-ready" platform (Jul. '17)
‣ Developed open-source, by IBM and others (DAH, State Street, HACERA ...)
– github.com/Hyperledger/fabric
– Initially called 'openblockchain' and contributed by IBM to Hyperledger project
– Key technology for IBM's blockchain strategy
– Actively developed, IBM and IBM Zurich play key roles
‣ Technical details
– Programmable, replicated, sharded blockchain state machine; implemented in GO
– Runs smart contracts or "chaincode" within Docker containers
9– Implements consortium blockchain using traditional consensus (BFT,
Kafka/ZooKeeper)

Why Hyperledger Fabric?
• Permissioned Network
• Confidential Transactions
• No cryptocurrency
• Programmable

Permissioned Network

Confidentiality

No Currency

Automated Processes

Hyperledger Fabric Features
• Node.js chaincode support

• Developers can now author chaincode using the most popular framework for
the world’s most popular programming language
• Channel based event service
• To enable clients to subscribe to block and block transaction events on a per-
channel basis.
• Ability to package CouchDB indexes with chaincode, to improve performance
• Ability to dynamically update client identities and affiliations
• Node.js SDK connection profiles to simplify connections to Fabric nodes
• Mutual Transport Layer Security (TLS) between Fabric nodes, and between clients
and nodes
• Ability to encrypt ledger data for confidentiality using the chaincode encryption
library
• Attribute-based Access Control in chaincode
• Chaincode APIs to retrieve client identity for access control decisions

Modular consensus in Fabric V1
‣ "Solo orderer"
– One host only
– Used in development scenarios
‣ Apache Kafka, a distributed pub/sub streaming platform

– Tolerates crashes among member nodes, resilience from Apache Zookeeper
inside
– Focus on high throughput
‣ BFT-SMaRt - Research prototype
‣ SBFT - Simple implementation of PBFT (currently under development)

– Focus on resilience

Hyperledger Fabric Architecture
External-CA Fabric-CA
Membership optional
optional 
 Services Admin
Peer
Client SDK
Endorser
Application (HFC)
Committer
O O Ledger
Chaincode
A
B
O O Events !
Ordering-Service
Hyperledger Fabric Network

Nodes in a network

Nodes
• All Blockchains have nodes. They form the blockchain and connect to other
nodes
• In blockchain - the nodes are peer to peer (distributed)
• In permissionless networks (BTC and ETH) - ALL NODES ARE EQUAL

Nodes

Nodes: Hyperledger
• In Hyperledger : ALL NODES ARE NOT EQUAL

Nodes Breakdown

Nodes Breakdown

Nodes: Client Nodes

Nodes: Client

Peers: Endorser

Endorsing Peers
• Validates the transaction

• Checks for certificates
• Executes the chaincode but does not SAVE the code to the ledger
• It is stored as a RW set and does a VOTE (endorsed or NOT endorsed)
• They are setup on the channel

Peers: Endorser

Hyperledger Fabric Transaction Life Cycle: Step 1/7
Application proposes transaction
E0 P3 P4 Endorsement policy:
A
B
A • “E0, E1 and E2 must sign”
D
• (P3, P4 are not part of the policy)
Client
Application
S
D E1 Client application submits a transaction
proposal for Smart Contract A. It must
O O
K
A
B target the required peers {E0, E1, E2}
O O
Key:
P
E2 Endorser Ledger
A
B
Ordering-Service Committing Peer Application
Hyperledger Fabric Ordering Node
Smart Contract Endorsement

(Chaincode) Policy
Propose transaction (1)

Endorsers Execute
Proposals
E0 P3 P4 E0, E1 & E2 will each execute the
A A proposed transaction. None of these
B D
executions will update the ledger
Each execution will capture the set of

Client
Application
S
D E1 Read and Written data, called RW
O O
K
A sets, which will now flow in the fabric.
B
Transactions can be signed & encrypted
O O
Key:
P
E2 Endorser Ledger
A
B

(Chaincode) Policy
Execute Proposal (2)

Application receives responses
E0 P3 P4 RW sets are asynchronously returned to

A
B
A
D application
The RW sets are signed by each

Client
Application
S
D E endorser, and also includes each record
version number
O O
K
A
1 B
(This information will be checked much

later in the consensus process)
E2
P
O O Key:
Endorser Ledger
A
B

(Chaincode) Policy
Proposal Response (3)

Application submits responses for ordering
E0 P3 P4 Application submits responses as a

A
B
A
D transaction to be ordered.
Ordering happens across the fabric in

Client
Application
S
D E parallel with transactions submitted by
other applications
O O
K
A
1 B
O O
Key:
P
E2 Endorser Ledger
A
B

(Chaincode) Policy
Order Transaction (4) (other applications)

Orderer delivers to all committing peers
E0 P3 P4 Ordering service collects transactions

A A into proposed blocks for distribution to
B D
committing peers. Peers can deliver to
other peers in a hierarchy (not shown)
Client
Application
S
D
K
E
A
* O O
Different ordering algorithms available:
• SOLO (Single node, development)
1 B
• Kafka (Crash fault tolerance)
O O
Key:
P
E2 Endorser Ledger
A
B

Deliver Transaction (5) (Chaincode) Policy

Committing peers validate transactions
E0 P3 P4 Every committing peer validates against

A A the endorsement policy. Also check RW
B D
* * * sets are still valid for current world state
Validated transactions are applied to

Client
Application
S
D E1 the world state and retained on the
O O
K
A ledger
B
*
I n v alid transactions are also retained
K e y :
on
E2
P
O O thEnedolresedr ger but do not update
A state
Lwedogerrld
B
* Ordering-Service Committing Peer Application

(Chaincode) Policy
Validate Transaction (6)

Committing peers notify applications
!
E0 P3 P4 Applications can register to be notified
A A when transactions succeed or fail, and
B D
when blocks are added to the ledger
Applications will be notified by each

Client
Application
S
D ! ! E peer to which they are connected
O O
K
A
1 B
O O
Key:
P
! E2 Endorser Ledger
A
B

(Chaincode) Policy
Notify Transaction (7)

Hyperledger Fabric Concepts: Peer Nodes
• Peers receive requests from clients

• No centralization is required
• A microservices architecture
90

Peer Definitions

Peers

Anchor Peers
• Update the other peers in the organization

• They get called by the Orderers
• They receive new blocks
• They should be clusters so as not to be a single point of failure
• They are setup on channels
• Used to bridge channels

Hyperledger Fabric Concepts: Endorsement Policy

Endorsement Policy

Hyperledger Fabric Concepts : Ledger
• The ledger tracks all of the assets transactions

• Records the state changes of the assets as a result of the execution of
transactions
• All nodes have a copy of the ledger (hence the distribution)

Peers

Transactions Logs
• Transaction Log == The Ledger

• A permanent record of all transactions
• Immutable and distributed amongst nodes on the Channel
• Uses LevelDB with Update & Delete functions removed
• ALL Transactions must be conducted through chaincode

Transaction Logs

Ledger

Writing a Ledger
• Transaction Logs : All Transactions (changes to the asset)

• I.e.: I sell my ownership of my company to party B - that transfer is recorded on the
ledger
• Transaction Log is IMMUTABLE
• Transaction Log can do : CR (NEVER UD)
• Uses the LevelDB and is embedded in the peer (Transactions are inserted into here)
*you can never change this
• State Database : Current state of assets at any point in time
• I.e.: A data file that represents my company (with additional data) with one of
those attributes being the owner
• STATE DB can do: CRUD
• STATE data is: KVV and that KVV is versioned (Key | VERSION | VALUE)

What the Ledger is

Capabilities

Capabilities

Interactivity

Tx Log: Behind the Curtains

World State DB: Behind the Curtains

WorldState
Database
• Pluggable worldstate database
• Default embedded key/value implementation using LevelDB
– Support for keyed queries, but cannot query on value
• Support for Apache CouchDB
– Full query support on key and value (JSON documents)
– Meets a large range of chaincode, auditing, and reporting requirements
– Will support reporting and analytics via data replication to an analytics engine such as Spark (future)
– Id/document data model compatible with existing chaincode key/value programming model
Chaincode SHIM CouchDB
LevelDB

WorldState Database
• Current state data represents the latest values for all assets in the ledger.
• As current state represents all the committed transactions on the channel, it is sometimes
referred to as world state.
• Chaincode invocations execute transactions against the current state data.

• To make these chaincode interactions extremely efficient, the latest key/value pairs
for each asset are stored in a state database.
• The state database is simply an indexed view into the chain’s committed
transactions.
• It can be regenerated from the chain at any time.
• The state database will automatically get recovered (or generated, if needed) upon
peer startup, before new transactions are accepted.

WorldState Database
• The default state database, LevelDB, can be replaced with CouchDB.

• LevelDB is the default key/value state database for Hyperledger Fabric, and simply stores
key/value pairs.
• CouchDB is an alternative to LevelDB.
• Unlike LevelDB, CouchDB stores JSON objects.
• CouchDB supports keyed, composite, key range, and full data-rich queries.

World State DB: Behind the Curtains

World State DB: Configurability

Hyperledger Fabric Concepts: MSP

Membership Service Provider (MSP)

Certificate Authorities(CA)



Hyperledger MSP
• Businesses and Governments interact with KNOWN entities

• Because of this, a mechanism for managing identities is required
• In some cases, regulations mandate that entities know who they are doing business with (KYC,
AML as examples)
• Hyperledger is a Permissioned Network

• All identities are known
• There is no anonymous access
• Roles are defined by the business and Access is restricted
• Access and Role definition is managed by a MSP in Hyperledger

Ledger Access Diagram
119

Hyperledger MSP
• Identities in Hyperledger are managed by X.509 Certificates

• All Members are assigned a unique certificate / public key / private key
• All transactions signed with participant’s private key
• Any component in the solution can validate identity using public key
• Members are assigned certificates to validate public keys
• Even infrastructure components are given keys
• All Certificates are given by the Certificate Authority (CA)

• A trusted party that affirms the identity of an entity by signing the certificate
containing the entity’s public key

Hyperledger Permissioned Network
• Members manage identities within their organization
X509 Member Create and revoke certificates participants

Cert Org and infrastructure
Infrastructure
Participant

Public Key Infrastructure (PKI’s)

Hyperledger MSP

Hyperledger MSP

Fabric Certificate Authority
• In general, Certificate Authorities manage enrollment certificates for a
permissioned blockchain.
• Fabric-CA is the default certificate authority for Hyperledger Fabric, and
handles the registration of user identities.
• The Fabric-CA certificate authority is in charge of issuing and revoking
Enrollment Certificates (E-Certs).
• The current implementation of Fabric-CA only issues E-Certs, which
supply long term identity certificates.
• E-Certs, which are issued by the Enrollment Certificate Authority (E-CA),
assign peers their identity and give them permission to join the network
and submit transactions.
MSPs and CAs

Hyperledger Fabric Concepts: Channels
• Members can participate in multiple Hyperledger Blockchain networks

• Transactions in each network are isolated
• Accomlished via channels
• Peers connect to the channels
• Each channel has its own independent ledger (visibility is restricted to the members of each
channel)
• Channels are similar to having MULTIPLE blockchains on the same network

Channels
•Separate channels isolate transactions on different

ledgers
• – Chaincode is installed on peers that need to access
E0 the worldstate
– Chaincode is instantiated on specific channels for
specific peers
E1 – Ledgers exist in the scope of a channel
Ordering-Service • Ledgers can be shared across an entire network of peers
• Ledgers can be included only on a specific set of participants
– Peers can participate in multiple channels
– Concurrent execution for performance and scalability

Single Channel Network
• Similar to v0.6 PBFT model

• All peers connect to the same
system channel (blue).
Client
Application
S
D
K
E0 E2 • All peers have the same
A A
B
chaincode and maintain the same
B
• Endorsement
ledger by peers E0, E
E3 E and
P 1,
E1 E3 Key:
Endorser Ledger
A Ordering-Service A
B B
Committing Peer Application
Hyperledger Fabric
Ordering Node

(Chaincode) Policy

Multi Channel Network
• Peers E0 and E3 connect to the

red channel for chaincodes Y and
Z
Client
Application
S
D
K
E0 E
2 • Peers E1 and E2 connect to the
O
Z A
B
Y
blue channel for chaincodes A and
P O P
B
Client
Application
S
D
K
E O E3 Key:
Endorser Ledger
Ordering-Service
1
A Y
O
B Z
Committing Peer Application
Hyperledger Fabric
Ordering Node

(Chaincode) Policy

Future 2 Network Topology
E E
O O
E P E
O O O O
Ordering Service Ordering Service
E E
Blockchain Network Blockchain Network
1 2
• Peers will be able to connect to channels
served by different ordering services.
Peer • The peer is not connecting the three

blockchain networks but is maintaining a
Endorser
ledger for different channels.
Orderer

Future 3 Network Topology
E E
O P O
E E
O O P O O
Ordering Service Ordering Service
E E
Blockchain Network Blockchain Network
1 2
Orderin
O • Peers will be able to connect to
g
Service channels served by different
ordering services.
O O
Peer
• The peer is not connecting the three
E E E blockchain networks but is
Endorser maintaining a ledger for different
channels.
Orderer

Future Network of Networks
E E
E E E
E P E
E
P
P
E
P
E E
E P P E
E
Peer
E E
Endorser
E E E
Orderering E
Service

Hyperledger Fabric Concepts: Orderer
• Orderer Nodes are the communication backbone of the fabric blockchain

• Service gateway to request txs be added to the blockchain
• Ensures consistent ledger state across the network
• Defines recorded order of transactions
• Creates the blocks and guarantees quantized delivery
• A bit like “miners” on a public blockchain

Orderer Nodes

Orderer Nodes

Client Node to Orderer Nodes

Orderers
• Transactions within a timeframe are sorted into a block and are

committed in sequential order.
• In a blockchain network, transactions have to be written to the shared
ledger in a consistent order.
• The order of transactions has to be established to ensure that the updates to
the world state are valid when they are committed to the network.

Hyperledger Composer
© Copyright 2017 | All Right Reserved

What is Hyperledger
Composer?
“ Hyperledger Composer is a set of collaboration tools for building

blockchain business networks that make it simple and fast for
business owners and developers to create smart contracts
(Chaincode) and blockchain applications to solve business problems “

Hyperledger Composer Benefits
Increases Saves Reduces Increases

understanding time risk flexibility
Bridges simply from Develop blockchain Well tested, efficient Higher level
business concepts to applications more design conforms to abstraction makes it
blockchain quickly and cheaply best practice easier to iterate

Typical Hyperledger Composer
Architecture

Dependencies & Technologies
Language, Libraries and

Frameworks

BNA(Business Network Archive)
File

Hyperledger Composer Objects
• Business Network
• A collection of entities or organizations working together to accomplish a
common goal.
• A Business Network is made up of Participants.
• Business Networks work with Assets.

Hyperledger Concepts : Business Networks

Business Networks

Business Networks

• Assets
• Assets have Properties
• Assets can be tangible or intangible
• Intangible assets can include:
• Financial Assets (bonds)
• Intellectual Assets (patent)
• Digital Assets (music)
• Assets are mutable, most often have a finite lifespan
• Assets can be created, read, updated, and deleted
• Represented by JSON object

Hyperledger Concepts : Assets
• Assets (Tangible or Intangible)

• In Hyperledger, assets can be represented in JSON or Binary format
• A transaction can therefore be described a change in ASSET state as
codified by well defined rules

Assets

Assets

• Participants
• Participants have Properties
• Humans
• Organizations
• LOB Systems
• Participants are mutable, most often have a finite lifespan
• Participants can be created, read, updated, and deleted

Participants in a Business Network &
Assets

• Transactions
• Defines how a participant can interact with an asset
• Transactions are the intersection of Assets and Participants
• Typically involves updating a property of an asset
• Logic implemented via chaincode (smart contract)
• Chaincode written in JavaScript
• Transaction data (The Ledger) is permanent
• Records can be created or read, cannot be edited or deleted

• Queries
• Defines how data in a solution will be viewed/presented
• Permissions
• Defines who can do what in a solution
• Events
• Pub/Sub model
• Events can be subscribed to by any application, not just the app that caused
the event

Transaction

Transactions In the Model File

Events In the Model File

Flow Chart

More on this later

More on this later

ACL’s

Access Capability Concerns

Access Control

Access Control Language (ACL)




Access Control Rule

Rule

Rule

Rule

Rule

Rule

Rule

Rule

Rule

Rule

Rule

ACL Summary

Access Control Language (acl)
Hyperledger Composer differentiates between access
control for resources within a business network (business
access control) and access control for network
administrative changes (network access control). Business
access control and network access control are both defined
in the access control file (.acl) for a business network.
Network access control uses the system namespace, which
is implicitly extended by all resources in a business network;
and grants or denies access to specific actions as defined
below, and is intended to allow for more nuanced access to
certain network-level operations.
Document:
https://hyperledger.github.io/composer/reference/acl_lang
uage.html
Hyperledger Concepts: Identities

Identity

Identity

Queries

Queries

Queries

Queries

Historian

Components in a Blockchain Solution
Ledger A ledger is a channel’s chain and current state data which is maintained by each peer on the
…
channel.
f(abc); Software running on a ledger, to encode assets and the transaction instructions (business
Smart Contract logic) for modifying the assets.
A broader term overarching the entire transactional flow, which serves to generate an
Peer
agreement on the order and to confirm the correctness of the set of transactions constituting a
Network
block.
E Membership Services authenticates, authorizes, and manages identities on a permissioned

Membership
blockchain network.
T
Events ! Creates notifications of significant operations on the blockchain (e.g. a new block), as well as
notifications related to smart contracts.
Systems i Provides the ability to create, change and monitor blockchain components
Management
Wallet Securely manages a user’s security credentials
Systems Responsible for integrating Blockchain bi-directionally with external systems. Not part of
Integration blockchain, but used with it.

How events are used in blockchain
• In computing, an event is an occurrence that can trigger handlers txn txn txn
– e.g. disk full, fail transfer completed, mouse clicked, message received, !
temperature too hot… New
txn
• Events are important in asynchronous processing systems like

blockchain New txn
handler
• The blockchain can emit events that are useful to application
programmers
– e.g. Transaction has been validated or rejected, block has been
added…
• Events from external systems might also trigger blockchain activity
Transfer
– e.g. exchange rate has gone below a threshold, the temperature has gone confirmed
up, a time period has elapsed…
Application
20
4

Integrating with existing systems –
Possibilities
2. Blockchain
1. System
events
! events
! Existing
systems
3. Call into blockchain network

from existing systems
Transform
Blockchain network
Existing
systems
20
5

Non-determinism in Blockchain
• Blockchain is a distributed processing system random()

– Smart contracts are run multiple times and in multiple
places
– As we will see, smart contracts need to run getExchangeRate()
deterministically in order for consensus to work
• Particularly when updating the world state
getDateTime()
• It’s particularly difficult to achieve determinism
with off-chain processing
– Implement services that are guaranteed to be getTemperature()
consistent for a given transaction, or
– Detect duplicates for a transaction in the blockchain,
middleware or external system incrementValue
inExternalSystem(…
)

Network Setup
Installing and Instantiating Smart
Contract Chaincode
Operator installs then instantiates
E0 Operator installs smart contracts with

Ap A A endorsement policies to appropriate
B D
peers: E0, E1, E2, P3, and not P4
A
Operator instantiates smart contract

O E on given channel. One-time
A initialization
1 B
Policy subsequently available to all

p e ers on channel, e.g. including P4
Ke y :
E2 Endorser Ledger
A
B
Hyperledger Fabric Ordering peer

(Chaincode) Policy

Bootstrapping the Network (1/6)
Configure & Start Ordering Service
Ordering-Service
Hyperledger Fabric
• An Ordering Service is configured and started for other network peers to use

Configure and Start Peer Nodes
E E
0 2
E Ordering-Service
P4
1
Hyperledger Fabric
• A peer is configured and started for each Endorser or Committer in the network

Install Chaincode
E E
0 A
B 2 A
B
E Ordering-Service
P4
1 A
B
Hyperledger Fabric
• Chaincode is installed onto each Endorsing Peer that needs to execute it

Create Channels
E E
0 A
B 2 A
B
E Ordering-Service
P4
1 A
B
Hyperledger Fabric
• Channels are created on the ordering service

Join Channels
E E
0 A
B 2 A
B
E1 P
Ordering-Service 4
A
B
Hyperledger Fabric
• Peers that are permissioned can then join the channels they want to transact on

Instantiate Chaincode
E E
0 A
B 2 A
B
E1 P
4 Ordering-Service
A
B
Hyperledger Fabric
• Peers finally instantiate the Chaincode on the channels they want to transact on
• Once instantiated a Chaincode is live and can process transaction requests

• Endorsement Policy is specified at instantiation time

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Hyperledger Fabric

Developer Revision 6.0

• Familiar with C#, Java, JavaScript, or other C-derivative language

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• Learn the difference between anonymous and permissioned

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 Think of a “Block” as a sheet of paper with 25 recorded transactions.

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 A ‘magic number’ (0xD9B4BEF9) to show it’s a Bitcoin block

 A size number to specify how much data is coming next

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Transactions are grouped

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 Blocks are numbered in ascending order, 0 is first/oldest

 The number is the ‘height’ of the block

 Arrows only go from newer to older blocks - a block only

 Once a block is stored, it’s read-only (which is why it doesn’t

 Blocks store data, in Bitcoin, it’s the transactions, but it could

 Blocks are created periodically (on average, 10mins for

 A block represents a set of events that have occurred over a

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 Blocks aren't identified by their height, but by their id

 Block id is the hash of the data in the block

 Block id is a digital fingerprint of that block

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 Multiple blocks of data, in Hash Hash

which block has changed

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 A record keeping system – of Any Asset

 to record the transactions of importance (Non-

 Update to a medical record

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Proof of Work Proof of Stake Solo

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 Proof of Work Consensus

through a cryptographic hash

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 Proof of Stake Consensus

 Less energy intensive form of consensus

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 Other consensus mechanisms

selected to mine the next block

which consume storage

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 Other consensus mechanisms

 Similar to PoW, far more energy efficient

 Major criticism – requires trust in Intel, places power back in

the hands of a central authority

create new blocks and secure the blockchain

 Earn the right to become a validator/authority

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i) Centralized iii) Distributed

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Private & Closed Private & Open

• Construction • Supply Chain