Essay Sample on What is Blockchain

A blockchain is a decentralized, digitized, circulated database of records or open records of all cryptographic money exchanges which have been executed and shared among the individuals who have participated (Stanciu, 2017). It is an open database that keeps a dispersed record, which is fundamentally conveyed inside a shared system. It comprises of a rundown of records that are consistently expanding, called obstructs that incorporate exchanges, recorded and added to it in consecutive order (Sousa, 2018). Along these lines, the market members can without much of a stretch watch out for the advanced cash exchanges. Every hub which is associated with the system gets a duplicate of the blockchain that is consequently downloaded. These squares are secured by cryptographic hashes and an accord instrument from tampering (Sousa, 2018). When the data is entered into the blockchain, it can't be eradicated. The blockchain comprises an obvious record of each and every exchange that has been done until now (Stanciu, 2017). It is a circulated database that expels the need for an outsider check and doesn't require a focal position. Blockchain is said to be the innovation that will have the same sort of effect as the Internet did on individuals' lives due to its unique attributes like decentralization, security, well-shared, and distribution. Blockchain transactions have to be verified by all nodes of the network, unlike a central entity in other technologies. Also, these transactions are made secure by a digital signature that introduces authenticity and makes them impervious to fraud. Further, blockchain makes it easy to share as the higher the number of participating parties, the lower the likelihood of fraud.

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1.2 Types of Blockchain

In order to understand the different technologies of hyperledger fabric and composer, it is important to first understand the different types of blockchain and protocols. According to Agbo and Mahmoud (2019), there are three types of blockchain models that include private, public, and consortium. These models are shown in the figure below.

(Yewale, 2018)

A public blockchain model is characterized by permission for all parties to read, transact, and participate in a consensus process (Yewale, 2018). They are viewed as fully decentralized and immune from cryptoeconomics. In other words, they are open source and do not require permissions.

In open blockchain, the record or exchange record is being shared between the hubs in dispersed shared system and that outcomes in an exchange record that is immutable (Rasti, 2018). Here, anybody without consent can partake. Also, anybody might have the option to download the code and start executing open hub on their neighborhood gadget and can send exchanges by means of the arrange. These exchanges are straightforward, yet anonymous (Rasti, 2018).

Private Blockchain

Private blockchain will be blockchain in which compose consents are given to one association while read consents can be limited or open to some participants (Yewale, 2018). It is like private cloud, Here, the execution times (exchange times) are a lot quicker on a private blockchain when contrasted with open blockchain. Private blockchains takes edge over blockchain innovation by building up members and gatherings who could inside approve the exchanges. At whatever point it is about versatility and state consistence about administrative issues and information security rules, private blockchains have their very own utilization case. They accompany some security favorable circumstances just as disadvantages (Sukhwani, Martinez, Chang, Trivedi, & Rindos, 2017).

In private blockchain organize, members are whitelisted and are restricted to stringent authoritative commitments so as to work appropriately. Thus, this is where a productive agreement convention like Practical Byzantine Fault Tolerance (PBFT) can be used (Sukhwani, Martinez, Chang, Trivedi, & Rindos, 2017).

Be that as it may, there are a few similitudes among open and private blockchain. Both open what's more, private blockchains have decentralized distributed system. Each member has an imitation of shared annex just record with carefully marked exchanges. The two has the duplicates in synchronization by means of a convention which is called as accord. Albeit a few members are flawed or then again malignant, both open and private blockchains offers some guarantee on record's immutability (Dobson, 2018).

Consortium Blockchain

These are likewise called as united blockchains. It works under initiative of a gathering. In this model, we have different members crosswise over associations occupied with perusing and composing on the blockchain. Likened to the private blockchain, given the members are known, the accord calculations can be progressively loose when contrasted with the ones that oversee the open blockchain. Consortium blockchains offers all things considered exchange protection and are quicker. They have higher versatility. They are utilized broadly in banking segment. The pre-chosen set of hubs oversees the accord procedure. Think about a model with a consortium of fifteen money related establishments, where each establishment handles a hub. Out of that ten foundations should sign each square for the square to be reasonable. The read blockchain, the rights could be limited or open to the players (Dobson, 2018).

2.0 Blockchain Protocols

In the past two decades, blockchain technology has gained popularity not only in the tech sector, but also in the academic and finance sector. That increase in popularity has drawn more interest and developers who have in turn advanced the blockchain idea to create more protocols suited for different tasks. Such protocols include Bitcoin, Ethreum, Hyperledger, Ripple Consensus Network, R3's Corda, Hashgraph (Yewale, 2018). Out of these protocols, the most popular include Bitcoin and Ethereum due to the high usage of their respective currencies. However, Ripple, Hashgraph, and hyperledger have in the recent years been gaining acceptance in the software development sector as more sector participants realize their potential benefits. This paper will focus on the hyperledger protocol and explore its different technologies, applications, and challenges associated with its application.

2.1 Hyperledger

2.1.1 Definition and Origin

In the tech sector, a hyperledger is understood as a blockchain public platform that was created by the Linux Foundation in 2015 to help the distributed ledgers that are blockchain-based (Yewale, 2018). Typically, hyperledger protocol focuses on ledgers created to facilitate multinational, technology, supply chain, and financial transactions. The main goal of utilizing this protocol is to enhance reliability and performance of the ledgers. Given that the platform is open source, there is huge emphasis on participation of players from different industries so as to advance the blockchain technology. Linux Foundation has made efforts to create a good environment for collaboration by providing a modular framework that supports a wide array of components for different uses. Although it has been around for a few years, research by Aidin (2018) shows that the platform already supports several business blockchain technologies that include smart contract engines, sample applications, graphical interfaces, and distributed ledger frameworks. The figure below shows a hyperledger modular framework.

(Yewale,2018).

Since its inception in 2015, the platform has undergone major improvements which have been made true through collaboration with such players as Enterprise Ethereum Alliance (EEA), Microsoft's Coco, and Cisco (Yewale, 2018). These improvements have resulted in development of various hyperledger frameworks and tools that include Sawtooth, Iroha, Fabric, Burrow, and Indy.

2.1.2 Hyperledger Frameworks

2.1.2.1 Hyperledger Sawtooth

Developed by the Intel team, Hyperledger Sawtooth is used to develop, deploy, and implement distributed ledgers. The platform has different consensus altgorithm for use based on the magnitude of a network. Rasti (2018) posits such algorithm to include the Proof or Elapsed Time (POET) that helps with scalability. The hyperledger Sawtooth provides versatility and support for permissioned as well as non-permissioned deployments (Rasti, 2018).

2.1.2.2 Hyperledger Iroha

Hyperledger Iroha was developed through a collaborative effort from the NTT Data, Soramitsu, Hitachi, and Colu. The team developed this framework with the goal of easing integration into projects that require distributed ledger technologies (DLTs). Unlike other Hyperledger frameworks, Iroha focuses on development of mobile applications together with client libraries for both Android and ios. Yewale (2018) points out that Iroha framework is highly preferred by developers using the C++ language.

2.1.2.3 Hyperledger Fabric

Hyperledger Fabric was developed by teams from Digital Asset Holdings, Blockstream, and IBM for codebase. Rasti (2018) describes Hyperledger Fabric as a revolutionary framework due to its features that allow membership services and plug-and-play properties for blockchain solutions. Its unique abilities enable entities while avoiding passage of information via a central point hence allowing confidential transactions.

2.2 Hyperledger Tools

According to Agbo and Mahmoud (2019), Hyperledger tools refer to supporting software utilized to maintain and execute blockchains. Also, these tools are utilized to monitor and explore information on the ledgers as well as design and make improvements in the blockchain networks. The common Hyperledger tools include Caliper, Cello, Composer, Explorer, and Quilt.

Although there are various Hyperledger frameworks and tools as shown above, this paper will focus on Hyperledger Fabric and Composer.

3.0 Hyperledger Fabric and Hyperledger Composer

According to Rasti (2018), Hyperledger Fabric is a distributed ledger technology developed for execution of smart contracts. The technology was developed by the Linux Foundation to support the creation of application with modular architecture (Sousa, Bessani, & Vukolic, 2018). The execution of smart contracts is enabled through the application of chaincode technology. Yewale (2018) points out that Hyperledger Fabric is among the most reliable blockchain technologies that are permissioned and enterprise-oriented. Bano et al. (2017) add that the fact that Hyperledger Fabric utilizes the RESTful APIs for execution of querries together with the use of the IBM Blockchain platform enables the technology to offer the necessary support to business with accountability, trust, and transparency. On the other hand, Chua, Li, and He (2019) describe Hyperledger Fabric as a framework that is permissioned and has an architecture that is modular and easy to configure to enable consensus and membership services. Unlike in non-permission network systems that allow unknown parties into the network, Hyperledger Fabric ensures that only approved players participate by enrolling through the Membership Service Provider (MSP). That feature allows confidential transactions through a private channel where information is revealed to the selected players only (Chua, Li, & He, 2019). The figure below shows some of the differences between Bitcoin, Hyperledger Fabric, and Ethereum.