Understanding Blockchain (Hyperledger Fabric) Concept - hyperledger-fabric

For the past few days i am trying to learn blockchain, more specifically in using hyperledger fabric
However, while i am quite familiar building centralized app, i am so new in grasp this whole new concept, and got some question in mind i haven't found answer, yet.
If its decentralized, does the script will run as desktop background process in every machine connected to the network through internet?
Since
no way it could be "decentralized" if its hosted on 3rd party server
blockchain platform seems could seamlessly write/read local files, which certainly not possible at the case of hosted in 3rd party server
existing blockchain application (i.e bitcoin) written for desktop (c++)
If it does desktop process, in the case of creating website interface to run the application, do we need API to communicate? And if so, how the API could be made to communicate between all machine in the network?
Moreover in the case of storing sensitive data like password, since its stored locally in every machine, does it means we will rely only on encryption being used? I assume common AES256 will work? Or need multi layer encryption (as in XMR) to make it harder for people trying to decrypt those sensitive information?
Any input is greatly appreciated. Thank you in advance!

I'll answer your questions for Hyperledger Fabric since that's what you tagged this post for.
Presumably the "script" you mean is chaincode, the blockchain back-end part of the decentralized application. It runs on endorsers (part of Fabric peers), specifically all endorsers that are specified in the endorsement policy and have installed the chaincode. The endorsement policy specifies how many endorsers need to agree for chaincode transactions to go through, i.e. 3/5. These peers can be hosted by multiple organizations in different places, that's why it's decentralized.
You need to use the Hyperledger Fabric SDK to communicate with your chaincode (get data, send transactions).
Decentralized apps don't really use user-password combo for identity management. Users have public/private keypairs which they need to keep locally. Only if you want to encrypt the private key you'd need a password for the user to decrypt it locally. You use the private key to sign transactions and to authenticate with the network (which determines your access rights, i.e. user vs admin)
I can recommend the Fabric paper as a learning resource
Also check out the docs, they cover many of your questions

I would recommend first taking a step back and finding out what are the best use cases for Web3 vs Web2. There are a number of projects that seem to have been shoehorned into using Web3 when they could have been created more quickly and efficiently using
Web2 technologies.
Ask yourself these questions before jumping on board the decentralized Web3 bandwagon:
Is an Immutable Ledger the Best Fit for Your Back-end?
Does Your Back-end Work Best as Decentralized Computing?
Do You Need Scalability or High Transaction Volumes?
Only when you understand the problem you are trying to solve, can you determine the best technologies for the job.
To help answer the above questions, you can use the following article as a resource: https://www.scalablepath.com/back-end/choosing-web3-for-software-project

Related

Why blockchain structure is used in Hyperledger Fabric?

I have a problem with understanding why Hyperledger Fabric (HLF) uses blockchain structure.
I know that in Bitcoin blockchain structure ensures big security due to PoW algorithm and longest chain rule, but what are advantages of using a blockchain structure in HLF?
It seems to me that in Hyperledger Fabric, instead of the blockchain structure, there could be one transaction history log and network could work in the same way - I bet I'm wrong, but I haven't been able to find an explanation yet.
I would be grateful for the clarification of this issue.
I think a lot of questions you have in your mind comes from the overlapped definitions of DLT and blockchain.
DLT:
A DLT is simply a decentralized database that is managed by various participants. There is no central authority that acts as an arbitrator or monitor. As a distributed log of records, there is greater transparency – making fraud and manipulation more difficult – and it is more complicated to hack the system.
All of this could well be familiar because it’s written about the features of blockchain as well.
Blockchain:
Blockchain is nothing else but a DLT with a specific set of features. It is also a shared database – a log of records – but in this case shared by means of blocks that, as the name indicates, form a chain. The blocks are closed by a type of cryptographic signature called a ‘hash’; the next block begins with that same ‘hash’, a kind of wax seal. That is how it is verified that the encrypted information has not been manipulated and that it can’t be manipulated.
DLT platforms that are not blockchain provide immutability too, but it's just the way Hyperledger Fabric provides this characteristic which makes it a blockchain framework.
Every blockchain framework, be it the Ethereum, Bitcoin, etc all store the transaction information in blocks, where each block is linked to its predecessor by a hash and provides immutability.
Corda is very much similar to Hyperledger Fabric, but it is said to be both a blockchain and not a blockchain. Architecturally, it's very much similar to Hyperleder Fabric, but with only a key difference which makes Hyperledger Fabric a blockchain framework, and Corda a DLT.
I'll try to answer your question by emphasizing on the point that why Corda is not a blockchain.
Why is Corda a blockchain, and not a blockchain?
A Transaction in Corda is cryptographically linked (chained) to the transactions it depends on. Just like Bitcoin, but the range of concepts that can be expressed is far wider.
Transactions in Corda are processed by having each participant in the transaction execute the same code deterministically to verify the proposed updates to the ledger. Just like Ethereum, but the languages you can use are high-level and productive, like Java, rather than obscure ones like Solidity.
Transactions in Corda are shared only with those who have a need to know. Just like channels in Fabric but designed in from day one and fully integrated into the programming model.
Transactions in Corda are confirmed through a process of consensus forming using one of a range of algorithms, including Byzantine Fault Tolerant algorithms. Just like any other blockchain, but with the unique features that a Corda network can support multiple different consensus pools using different algorithms.
So, for all intents and purposes, Corda is a blockchain. And yet… there’s also an utterly critical difference.
Unlike the platforms mentioned above, Corda does not periodically batch up transactions needing confirmation — into a block — and confirm them in one go. Instead, Corda confirms each transaction in real-time. No need to wait for a bunch of other transactions to come along. No need to wait for a “block interval”. Each transaction is confirmed as we go.
Now coming onto your question why Hyperledger Fabric (HLF) uses blockchain structure? The answer is simply because they chose to.
References:
https://www.bbva.com/en/difference-dlt-blockchain/
https://cointelegraph.com/news/what-is-the-difference-between-blockchain-and-dlt
https://www.corda.net/blog/corda-top-ten-facts-7-both-a-blockchain-and-not-a-blockchain/
To keep the record immutable, Hyperledger Fabric uses blockchain structure. So by using Hyperledger Fabric, you can get an immutable record of all the transactions which is tough to temper with fraudulent activities.
Suppose you buy an valuable asset and you are the current owner of that asset. Now it is very hard for others to temper that records or change your ownership without your permission as Hyperledger Fabric uses blockchain structure to keep the record immutable.

Correct Hyperledger Fabric E-Commerce Architecture

I've only really just started looking into Hyperledger Fabric and have been asked to create an e-commerce platform (e-bay style) that uses the platform.
However, I am stuck with defining the appropriate architecture for the Hyperledger network, or if it is even appropriate to for this scenario, mainly because I do not know the number of organisations that will be part of the network at the start. Also how would this work having a single client on the front-end that users (in this case they would be organisations) would use to login, register, etc and how would this reflect on the Hyperledger network?
Would each new user be a new node on the network?
I first thought I could create a base network with just a ETCDRAFT orderer, a Fabric CA node, CouchBase, Fabric CLI node and a main Channel, and then add new organisations as they came along, but I wouldn't have anywhere to store the chain code as far I understand it.
I also thought of having the same structure but with an additional Peer node that would essentially represent the e-commerce platform itself, and new organisations (users on the ecommerce platform) would be added as users on the network, but that kind of defeats the purpose of a network in my view.
I know this might be a noob question but I am struggling a bit to define my initial set-up so that I can start writing the chain code, API and client, so any clarity on how this should ideally look in terms of network structure would be much appreciated.
The problem statement is quite vague in itself.
I am trying to answer the question with my assumptions.
Let consider e-commerce website like Amazon.
How many participants in there of blockchain network?
The sellers and buyers consider them as identities of a single organization not "Node".
The peers would be the various department running in the amazon like dep1,dep2 etc.

Hyperledger Composer, IPFS/Storj, and front end compatibility

I have been researching online a lot, and I have hit a roadblock.
My current situation is that I have a hash inside my blockchain, and this would reference a file that will return this from off chain. My question is that would using IPFS and Storj even be possible using Hyperledger Composer? If so, how would the integration process work? My case right now would require the use of Hyperledger due to its architecture over Ethereum, so it is much preferable to use Hyperledger.
Besides this, I would also like to create a custom front end. Is it possible to work on custom CSS and code, for example, using Angular?
yes - firstly see storage options discussed in this thread -> Best practice to save files in blockchain -
In Composer you could store the hash as a string on an asset in your model etc etc and you can retrieve via IPFS client search etc once you've got your asset (eg by name or ID) etc .- lastly see this announce for current status of Composer FYI

Hyperledger Fabric - How to create Channels via API and dynamically

As far as I have seen most Hyperledger Fabric examples deal with the idea to create channels and thus private ledgers to apply view and data restrictions between parties. (e.g. https://courses.edx.org/courses/course-v1:LinuxFoundationX+LFS171x+3T2017/courseware/f0db5224eb0e4bbb8cc1e93a6819012c/8a27d35a4ae34e2ea5d2c43e8b3cb71c/?activate_block_id=block-v1%3ALinuxFoundationX%2BLFS171x%2B3T2017%2Btype%40sequential%2Bblock%408a27d35a4ae34e2ea5d2c43e8b3cb71c)
But as far as I know these channels can't be created/bootstrapped via API, only via scripting.
Two questions - If you have a lot of different parties like insurers and customers
How should one handle this situation without a Client API and
How to deal with these many channels/ledgers then in the future?
Thanks
Oliver
You can create a channel either with the peer CLI, or with using one of the SDKs.
Now, what really happens in both of them is that they simply issue a gRPC call to the ordering service's Broadcast gRPC service, with a custom crafted message that contains the identity material (PEMs) of the organizations, parameters, etc. (everything in the configtx.yaml)
So, if you just look at the implementation of how an SDK does that - you should be able to do that yourself.

What does Hyperledger composer do .Does that create chaincode for fabric or something else?

I have been working on hyperledger fabric for some time. But I don’t understand where hyperledger composer comes in place . I do understand that it helps in visualizing the logic and transaction. But what I don’t get is how do you integrate it with fabric network? what does it create? Is it chaincode if not then what?
The Compose runtime is chain code that executes the business network archive artefacts created by the end-user.
Perhaps this will help?
https://blog.selman.org/2017/07/08/getting-started-with-blockchain-development/
The tech answer is that Hyperledger Composer is an abstraction layer over Hyperledger Fabric.
The practical answer is that it is awesome. Think how Angular and hundreds of other frameworks make web programming easier.
It is a framework where you can write your blockchain in Javascript and specify your data objects in an easy to understand text file. Throw in some querying, ACL stuff and pathways to use some nice opensource tools that let you do things like generate a Web API automatically and play around in a web environment without installing anything.
We are using it for the Integra Ledger Legal blockchain. (www.integraledger.com). I just spent the day working in it.

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