Blockchain

What is distributed Ledger

 Centralized Ledger
 Banks holds the golden record.
 Client B must maintain and reconcile its
own ledger against that of bank and must
convince the bank of “true status” of the
bank ledger if discrepancy arises.

 Distributed Ledger
 There is one ledger and all have an
access to that ledger.
 All nodes agree to a protocol that
determines the “true state” of ledger at
any given time.
What is Blockchain
Business network today are often inefficient because each participant in the
network keep records, of all transactions between all parties that business interact
with.
The Process is expensive, because of duplication of effort and intermediaries
adding cost to the services.
Solution to this problem is,
Blockchain technology which provides shared ledger technology that allows any
participant in the network to see the ledger.

Basics
 A Distributed ledger.
 Comprises of unchangeable, digitally recorded data in packages called blocks.
 Stores the data into distributed ledger and allows the resulting ledger to be
accessed by different severs.
 Cryptographically chains blocks in chronological order. This ensures all data in
the overall blockchain has not been tampered and remains unchanged.
 Blockchain network types

• Unknown Participants • Known Participants

• Write and read by all participants • Write requires consensus of several participants
• Consensus by proof of work • Ready may be public or restricted
• For Ex: Bitcoin is designed as • Multiple algorithm for consensus
‘anyone can write’ where
participants are not vetted and
can add to ledger without
needing any approval, its needs
defense mechanism against
attacks.
 Blockchain implementations

Bitcoin Ethereum Hyperledger Fabric

Cryptocurrency Yes(bitcoin) Yes(Eth) None

Network Public Public or Permissioned permissioned

Consensus Proof of work Proof of work Endorsement

Smart Contract None Yes(Solidity) Chain code

Language C++ Golang, C++,Python Golang, Java

Transaction Anonymous Public or permissioned permissioned

How it works
 How distributed ledger works

User One or Nodes Block

User Initiate Nodes
Broadcast more node aggregate Consensus reflecting
transaction Broadcast
these start validated Protocol true state is
using digital blocks to
transactions validating transactions used chained to
signature each other
to nodes transactions into blocks prior block
LINUX foundation presents

The Hyperledger Project is a collaborative effort created to advance blockchain

technology by identifying and addressing important features that can transform the
way business transactions are conducted globally

Permissioned Enterprise blockchain

Modular framework
Open Source
100+ Members and Partners
Hyperledger Reference architecture
Types of nodes:
Client (CLI)-> Acts on behalf of end-user. It must connect to peer for communicating it with blockchain. It connects
with both Peer as well as ordering node. Client executes the chain code and initiate a transaction.

Peer(P) -> A peer maintains state and Ledger.

Orderer(O)  The orderer keeps the entire network in synchronized state. When new transaction is created, orderer
informs all peers about transaction. It Provides shared communication channel.

Channel -> A data partitioning mechanism to control visibility only to stakeholders.

Endorsement ->
• An endorsement is a signed response of the result of a transaction execution
• An endorsement policy encapsulates the requirement for a transaction to be
accepted by the stakeholders, either explicit or implicit
• – A signature from both member1 and member2
• – Either a signature from both member1 and member2 or a signature from member3
• – A signature from John Doe
Sample Transaction: Step1/7 – Propose Transaction
Sample Transaction: Step 2/7 – Execute Proposal
Sample Transaction: Step 3/7 –Proposal Response
Sample Transaction: Step 4/7 – Order Transaction
Sample Transaction: Step 5/7 – Deliver Transaction
Sample Transaction: Step 6/7 – Validate Transaction
Sample Transaction: Step 7/7 – Notify Transaction
Blockchain Benefits
Thank You