Hyperledger Fabric Orderer is the node type responsible for “consensus” for the Hyperledger Fabric permissioned blockchain framework. The Hyperledger Fabric Orderer can be installed as either a solo orderer (for development), or a kafka orderer (for crash fault tolerant consensus).
This Orderer can receive transaction endorsements and package them into blocks to be distributed to the nodes of the Hyperledger Fabric network.
In general terms, a blockchain is an immutable transaction ledger, maintained within a distributed network of peer nodes. These nodes each maintain a copy of the ledger by applying transactions that have been validated by a consensus protocol, grouped into blocks that include a hash that bind each block to the preceding block.
The first and most widely recognized application of blockchain is the Bitcoin cryptocurrency, though others have followed in its footsteps. Ethereum, an alternative cryptocurrency, took a different approach, integrating many of the same characteristics as Bitcoin but adding smart contracts to create a platform for distributed applications. Bitcoin and Ethereum fall into a class of blockchain that we would classify as public permissionless blockchain technology. Basically, these are public networks, open to anyone, where participants interact anonymously.
As the popularity of Bitcoin, Ethereum and a few other derivative technologies grew, interest in applying the underlying technology of the blockchain, distributed ledger and distributed application platform to more innovative enterprise use cases also grew. However, many enterprise use cases require performance characteristics that the permissionless blockchain technologies are unable (presently) to deliver. In addition, in many use cases, the identity of the participants is a hard requirement, such as in the case of financial transactions where Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations must be followed.
For enterprise use, we need to consider the following requirements:
While many early blockchain platforms are currently being adapted for enterprise use, Hyperledger Fabric has been designed for enterprise use from the outset. The following sections describe how Hyperledger Fabric (Fabric) differentiates itself from other blockchain platforms and describes some of the motivation for its architectural decisions.
Hyperledger Fabric has been specifically architected to have a modular architecture. Whether it is pluggable consensus, pluggable identity management protocols such as LDAP or OpenID Connect, key management protocols or cryptographic libraries, the platform has been designed at its core to be configured to meet the diversity of enterprise use case requirements.
At a high level, Fabric is comprised of the following modular components:
A smart contract, or what Fabric calls “chaincode”, functions as a trusted distributed application that gains its security/trust from the blockchain and the underlying consensus among the peers. It is the business logic of a blockchain application.
There are three key points that apply to smart contracts, especially when applied to a platform:
Smart contracts executing in a blockchain that operates with the order-execute architecture must be deterministic; otherwise, consensus might never be reached. To address the non-determinism issue, many platforms require that the smart contracts be written in a non-standard, or domain-specific language (such as Solidity) so that non-deterministic operations can be eliminated. This hinders wide-spread adoption because it requires developers writing smart contracts to learn a new language and may lead to programming errors.
Further, since all transactions are executed sequentially by all nodes, performance and scale is limited. The fact that the smart contract code executes on every node in the system demands that complex measures be taken to protect the overall system from potentially malicious contracts in order to ensure resiliency of the overall system.
Fabric introduces a new architecture for transactions that we call execute-order-validate. It addresses the resiliency, flexibility, scalability, performance and confidentiality challenges faced by the order-execute model by separating the transaction flow into three steps:
execute a transaction and check its correctness, thereby endorsing it, order transactions via a (pluggable) consensus protocol, and validate transactions against an application-specific endorsement policy before committing them to the ledger This design departs radically from the order-execute paradigm in that Fabric executes transactions before reaching final agreement on their order.
In Fabric, an application-specific endorsement policy specifies which peer nodes, or how many of them, need to vouch for the correct execution of a given smart contract. Thus, each transaction need only be executed (endorsed) by the subset of the peer nodes necessary to satisfy the transaction’s endorsement policy. This allows for parallel execution increasing overall performance and scale of the system. This first phase also eliminates any non-determinism, as inconsistent results can be filtered out before ordering.
Because we have eliminated non-determinism, Fabric is the first blockchain technology that enables use of standard programming languages. In the 1.1.0 release, smart contracts can be written in either Go or Node.js, while there are plans to support other popular languages including Java in subsequent releases.
As we have discussed, in a public, permissionless blockchain network that leverages PoW for its consensus model, transactions are executed on every node. This means that neither can there be confidentiality of the contracts themselves, nor of the transaction data that they process. Every transaction, and the code that implements it, is visible to every node in the network. In this case, we have traded confidentiality of contract and data for byzantine fault tolerant consensus delivered by PoW.
This lack of confidentiality can be problematic for many business/enterprise use cases. For example, in a network of supply-chain partners, some consumers might be given preferred rates as a means of either solidifying a relationship, or promoting additional sales. If every participant can see every contract and transaction, it becomes impossible to maintain such business relationships in a completely transparent network – everyone will want the preferred rates!
As a second example, consider the securities industry, where a trader building a position (or disposing of one) would not want her competitors to know of this, or else they will seek to get in on the game, weakening the trader’s gambit.
In order to address the lack of privacy and confidentiality for purposes of delivering on enterprise use case requirements, blockchain platforms have adopted a variety of approaches. All have their trade-offs.
Encrypting data is one approach to providing confidentiality; however, in a permissionless network leveraging PoW for its consensus, the encrypted data is sitting on every node. Given enough time and computational resource, the encryption could be broken. For many enterprise use cases, the risk that their information could become compromised is unacceptable.
Zero knowledge proofs (ZKP) are another area of research being explored to address this problem, the trade-off here being that, presently, computing a ZKP requires considerable time and computational resources. Hence, the trade-off in this case is performance for confidentiality.
In a permissioned context that can leverage alternate forms of consensus, one might explore approaches that restrict the distribution of confidential information exclusively to authorized nodes.
Hyperledger Fabric, being a permissioned platform, enables confidentiality through its channel architecture. Basically, participants on a Fabric network can establish a “channel” between the subset of participants that should be granted visibility to a particular set of transactions. Think of this as a network overlay. Thus, only those nodes that participate in a channel have access to the smart contract (chaincode) and data transacted, preserving the privacy and confidentiality of both.
To improve upon its privacy and confidentiality capabilities, Fabric has added support for private data and is working on zero knowledge proofs (ZKP) available in the future. More on this as it becomes available.
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