Hyperledger Fabric: Benefits and Use Cases
The Hyperledger Fabric open-source project from the Linux Foundation is the de facto industry standard for corporate blockchain platforms and modular blockchain architecture. The open, modular architecture uses plug-and-play components to accommodate a range of use cases. It is intended to serve as a platform for developing business solutions and enterprise-grade software.
The unique consensus approach provided by Hyperledger Fabric provides performance at scale while respecting the business’s needs for data privacy. More than 120,000 collaborating organizations and more than 15,000 contributing engineers help it accomplish this.
Hyperledger Fabric is an open, tried-and-true distributed ledger platform. Thanks to its strong privacy protections, only the information you choose to share is shared with the “permitted” (known) network users.
What is Hyperledger Fabric?
With plug-and-play components, Hyperledger Fabric is a modular blockchain architecture that can be used to create blockchain-based products, services, and applications meant for use by private businesses.
In December 2016, the Linux Foundation unveiled Hyperledger, an open-source distributed ledger system for companies. For industrial organizations, IBM developed Fabric, a highly extensible decentralized ledger technology (DLT) platform.
Since Hyperledger Fabric is private and requires authorization, businesses can isolate information (like price), and transactions can be processed more rapidly because there are fewer nodes in the network.
Benefits of Hyperledger Fabric
The benefits of Hyperledger fabric are listed below:
Open Source: The open-source Hyperledger Fabric blockchain framework is housed by the Linux Foundation. The developer scene is thriving and growing.
Requires Permission: Because fabric networks are permitted, each participant’s identity may be known and validated. This benefit is particularly helpful in industries where identifiable parties, such as healthcare, supply chain management, finance, and insurance, cannot access data. For instance, an insurance provider on a Hyperledger Fabric blockchain network can communicate customer claim data with approved parties to maintain consumer privacy.
Governance & Access Control: Channels are the private “subnets” of communication between two or more specific network members that comprise fabric networks. Users of the network can conduct private and secret business using these channels. In the blockchain network, each transaction occurs on a channel where the participants must be validated and given permission to transact. This adds an extra degree of access control and is very helpful when members want to restrict the accessibility of the data, as can happen when competing firms share the same network. With Fabric’s Private Data Collection feature set, access to specific channel transactions can be limited to a select group of users.
Performance: Hyperledger Fabric is made to support enterprise-grade use cases because to its fast transaction throughput made possible by its consensus mechanism. Byzantine Fault Tolerance, which could cause slow performance when confirming transactions on the network, is not an issue because Fabric is a permissioned blockchain system.
Use Case of Hyperledger Fabric
1. Supply Chain Management
Supply chains comprise regional or local networks of producers, retailers, and suppliers. Hyperledger Fabric networks can improve supply chain transaction processes by increasing the transparency and traceability of transactions inside the fabric. If they have permission to access the ledger, businesses on a Fabric network can see transaction history data. This information encourages responsibility and reduces the likelihood of transaction fraud. Real-time manufacturing and shipment data can be updated in the ledger. We might be able to monitor the state of the product in a much quicker, simpler, and more efficient manner.
2. Trading & Asset Transfer
Only a handful of the organizations or participants are required to trade and transfer assets, including importers, exporters, banks, and brokers. They work on projects together. Nevertheless, even in this digital age, much paperwork is still completed in this profession. Yet, thanks to Hyperledger, they may do business and interact with one another without utilizing paper. The Hyperledger fabric allows for adding the signature-verified document with the same level of assurance. Also, this enhances the functionality of the system. Hyperledger Fabric also has the benefit of allowing for the dematerialization of assets on the blockchain network. As a result, traders and investors will always have access to their financial instruments and be able to trade them.
3. Insurance
The insurance industry invests billions of dollars in stopping fraud and false claims. With the help of the Hyperledger Fabric, the insurance industry may access the transaction data recorded in the ledger. Hyperledger Fabric may also automate payments and quicken claim processing using the chain code.
Final Thoughts
By building a highly scalable, permissioned, secure, robust architecture powered by distributed ledger technology from the blockchain, Hyperledger Fabric is poised to transform corporate networks. Hyperledger Fabric is the blockchain framework that large and medium-sized organizations use the most. However, understanding it could not be easy because of its versatility and power.
