HYPERLEDGER technology

How does Hyperledger Fabric differ from Bitcoin?

Introduction to Hyperledger Fabric

Hyperledger Fabric is a private blockchain framework that was initiated at the end of 2015 by the Linux Foundation. It was aimed to implement blockchain technology within a private enterprise. What we mean by private is that the ledger of this blockchain would be kept private, and only the Permissioned entities would be allowed to make transactions or share some piece of information over the network. The network of this blockchain is kept private and is not shared with anyone else outside of the network.

Some Famous Enterprises Using Hyperledger Fabric:

Some Famous Enterprises

Permissioned vs Permissionless


In Permissioned blockchain, the network is basically built among identified, recognized, and reviewed members, in order to have a high level of trust factor for the security of transactions. As there exists an access control layer over the network, so only the identified members would be able to perform some action. In this way, the Permissioned blockchains are treated as more secure, and verifiable than Permissionless blockchain networks. For example, Ripple is one of the cryptocurrencies that give specific permissions to the members of the network. Also, Hyperledger Fabric can be a type of Permissioned blockchain as it works within an organization of known, and identified entities.


On the other hand, any person could become a part of the Permissionless blockchain network that is totally opposite to the Permissioned blockchain. This network is not owned by anyone i.e. it is publicly available for anyone. The ledger is distributed publicly across all the nodes of a network. Bitcoin, Litecoin, Ethereum, and many other blockchains fall in this category.

Permissioned vs Permissionless

Why use Hyperledger Fabric?

If we talk about the traditional blockchain, every member of the network carries its own ledger and has nothing to do with any permissions or roles to perform some specific functionalities. But in Hyperledger Fabric, every member in the network contains a certain identity on the basis of which that member is considered as a part of that network, and can perform specific actions. Hence, privacy and confidentiality get maintained in Hyperledger Fabric.    On the other hand, if someone wants to run an application or some piece of code on the blockchain, Hyperledger Fabric presents Smart Contracts. Smart Contracts are just programs that run on the blockchain when some predefined are met. They also help in initiating some other tasks on the basis of some specific predefined conditions.   Moreover, as the Hyperledger Fabric is maintained among only a few industries, so not a very big amount of data is stored here that isn’t easily manageable. In this way, Hyperledger Fabric is also storage efficient and also, this point assures the governance of those industries over the whole network.

How Hyperledger Fabric Works?

Hyperledger Fabric is a network of peer-to-peer members that have their own ledger. But here, all the peers perform different roles according to the permissions assigned to them. On the basis of their functionalities, peers can be divided into three different categories that are as follows:

Hyperledger Fabric


All the organizations in the network contain their own peers within them, as shown in the diagram above. Now let’s talk about the peers inside the organizations.

Endorser Peer

Endorser Peer receives the request for transaction invocation and checks the validity of the request sender by observing the certificate details, and the roles assigned to the sender. Then this peer runs the Smart Contracts and gets the results of the transaction. After that, the endorser node sends the response back with an approved or disapproved status of the request.

Anchor Peer

In organizations, the Anchor Peer exists as single or sometimes multiple. It gets the updates and broadcasts them to the other peers in the organization. So, the major purpose of this Peer is to broadcast the updates to all the peers.

Ordering Peer

The main peer of the network that maintains the synced ledger across the network is ‘Ordering Peer.’ This peer is responsible for creating the new block and sending it to all the peers so that the ledger of all the peers gets updated.

Workflow of Hyperledger Fabric:

  1. A member in the network sends a transaction invocation request from the client application to the Endorser Peer for checking the validity of the transaction.
  2. The Endorser Peer validates the transaction by checking the certificate details, and permissions assigned to the sender. Also, it runs the Smart Contracts on its end and simulates the results of Smart Contract.
  3. After validating these credentials, it sends back the approval or disapproval status of the request to the client application.
  4. The client application then sends the approved transaction to the Ordering Peer in order to be noted in a block.
  5. The Ordering Peer then chronologically orders and packages the approved transactions into the block and sends this block to the Anchor node to different participants.
  6. Now, the remaining task is lefts for the Anchor node. It broadcasts the block to all the peers inside the organization. Thus the ledger across all the nodes gets maintained and synced.

Use Cases

Supply chain:

Supply chains are around the world, scattered organizations of suppliers, makers, and retailers. Hyperledger Fabric associations can improve store network workings by growing straightforwardness and perceptibility of trades inside the association. On a Fabric association, associations with induction to the record can see comparative perpetual data, which approves duty and diminishes the risk of distorting. Likewise, creation revives are added to the record dynamically, which makes following provenance speedier and more direct during events like thing surveys or food spoiling flare-ups.

Also Read: Blockchain in Supply Chain | Use Cases


Security blackmail costs the assurance business billions of dollars a year, anyway with Hyperledger Fabric, protection offices can reference trade data set aside on the record to perceive duplicate or distorted cases. Blockchain can similarly make multi-party subrogation claims getting ready faster by using quick arrangements to automate repayment from the fault assembling back to the protection organization. Furthermore, reinforcement plans can use Hyperledger Fabric to streamline Know Your Customer (KYC) measures by taking care of customer data on a spread record and automating the check of their character reports with wise arrangements.


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