Hyperleger Fabric Workshop - Denver Blockchain Week

@horeaporutiu IBM Developer
Horea Porutiu
Developer Advocate, IBM
October 2018
Hyperledger Fabric Workshop

Slides
IBM Developer@horeaporutiu
@pluralsight
• Available on Twitter after talk
• http://slideshare.net/HoreaPorutiu

Agenda
1. Fabric High Level Idea
2. Actors in Fabric Network
3. Channels
4. Chaincode
5. Endorsement Policy
6. Transaction Flow
7. Demo
8. Inspect Chaincode
@pluralsight

Hyperledger Fabric
IBM Developer@horeaporutiu https://www.pinterest.com/pin/215469163401716164/

Hyperledger vs. Ethereum Throughput
@horeaporutiu IBM Developerhttps://www.hyperledger.org/projects/fabric
• Approximate throughput - Ethereum: 1,000 / minute

• Approximate throughput - Hyperlegder: 500,000 /
minute

• No concept of cryptocurrency in Hyperledger
minute

minute
• No cryptocurrency = no mining = more efﬁcient in terms of
electricity

• Enterprise needs high throughput = Hyperledger is made for
enterprise
minute
• No cryptocurrency = no mining = more efﬁcient in terms of
electricity

Concepts
• NOT central database

Concepts
• Data is distributed

Concepts
• If you make a mistake, you need to have another
transaction to ﬁx it.

Concepts
•No ‘delete’ operation in Hyperledger

Concepts
•No ‘delete’ operation in Hyperledger
• Cannot change ledger

Concepts Part 2
• If you replay all events in the ledger, you get the
‘current state’

Concepts Part 2
‘current state’
• All data is cryptographically signed

Concepts Part 2
‘current state’
• No requirements on hardware, network
infrastructure, software, security

Concepts Part 2
‘current state’
• Can be adjusted for any use case

Concepts Part 2
‘current state’
• Can be adjusted for any use case
• Not vulnerable to 51% attack (unlike Bitcoin)

Concepts Part 3
• Main use case - Party A doesn’t trust Party B

Concepts Part 3
• Party A records don’t match Party B

Concepts Part 3
• How to resolve? Settlement process (lawyers,
audits) - expensive, time-intensive

Concepts Part 3
• Instead, you can use 3rd party (veriﬁcation
authority), and send all data to them. Very expensive

Concepts Part 3
• Need to all trust veriﬁcation authority

Concepts Part 3
• Need to all trust veriﬁcation authority
• Veriﬁcation authority run by humans = prone to mistakes

Concepts Part 4
• No bulletproof way to work with two parties that don’t
trust each other

Concepts Part 4
trust each other
• All info is enforced by Hyperledger - all participants see this

Concepts Part 4
trust each other
• All info is enforced by Hyperledger - all participants see this
• Not possible for any party to alter data - must pass
through smart contract (chain code)

Actors in Hyperledger
•Michael Scott,
a.k.a. the peer
node. The peer,
(M. Scott) runs
the show
(chaincode). The
manager of The
Ofﬁce.
http://mtncatholic.com/2016/10/06/no-joke-dante-puts-michael-scott-hell/

•Michael Scott,
a.k.a. the peer
node. The peer,
(M. Scott) runs
the show
(chaincode). The
manager of The
Office.
• Toby, a.k.a the
CA(Certificate
Authority). The
CA hands out
certificates to
members of the
network. The
H.R. of The
Office - hands
out offer letters.
http://theoffice.wikia.com/wiki/Toby_Flenderson

•Michael Scott,
a.k.a. the peer
node. The peer,
(M. Scott) runs
the show
(chaincode). The
manager of The
Office.
• Toby, a.k.a the
CA(Certificate
Authority). The
CA hands out
certificates to
members of the
network. The
H.R. of The
Office - hands
out offer letters.
http://theoffice.wikia.com/wiki/Toby_Flenderson https://www.dailybreak.com/break/chilis-lifts-ban-on-pam-beesly
• Pam, a.k.a. the
orderer
broadcasts
messages to
peers. As the
receptionist in the
office, she relays
messages to other
employees.

• Every operation inside Hyperledger must be
cryptographically signed with certiﬁcate
Actors - Certiﬁcate Authority

• Doesn’t matter if you just read data, or if you update,
still need to sign with certiﬁcate

• Can generate your own certiﬁcates

• CA (if you use out of box) provides X.509 certiﬁcates -
same certiﬁcate you use to make your website work on
HTTPS

• CA (if you use out of box) provides X.509 certificates -
same certificate you use to make your website work on
HTTPS
• Inside certificate, you can add info to the system -
smart contract can read this, make decision based on
certificate

Actors - Certiﬁcate Authority Part 2
• CA (Certiﬁcate Authority) follows best crypto standards

• Don’t have to use X.509 or Public Key Infrastructure,
but that’s a very advanced topic

• Enrollment - create accounts, register users, create
attributes

attributes
• Provide user / pass to CA and it gives you certiﬁcate ->
can enforce expiration date

attributes
• Can use OpenSSL

attributes
• Can use OpenSSL
• CA can be attached to active directory, all users can be
taken from active directory

• Fabric CA can be chained

• For example - you have 1 root CA and more
intermediate CA that trust the root CA

• When you use SDK, you sign all requests with certiﬁcate

• Can track certiﬁcate (identity) on the network - see
who invoked transactions
• When you use SDK, you sign all requests with certiﬁcate

Actors - Peer
• Main working horse

Actors - Peer
• Where ledger / blockchain is stored

Actors - Peer
• Need more than 1 peer

Actors - Peer
• Request from SDK is sent to peer

Actors - Peer
• 1 peer can be part of many channels (cover this later)

Actors - Peer
• Endorse then update ledger. Endorsement is heart of system

Actors - Peer
• Back up of system? Peers ﬁnd each other and sync

Actors - Peer
• Back up of system? Peers ﬁnd each other and sync
• Need to increase throughput? Simple - add more peers

Actors - Ordering Service
• Heart of consensus algorithm

• Provide order of operation

• Before being committed to ledger, must pass thru
ordering service

• Creates blocks
ordering service

• Creates blocks
ordering service
• Sends blocks to peers, peers add block to ledger

• Creates blocks
ordering service
• Sends blocks to peers, peers add block to ledger
• Decides which operation comes before or after another
operation

Actors - Ordering Service Part 2
• Only 1 instance? Solo orderer - use only in test /
development

development
• Production? Use multiple instances, use Kafka orderer

development
• Kafka orderer is distributed, can put these in different
data centers in different continents - if one fails, your
network is still running

development
• Must use Kafka for maximum throughput

development
• Throughput also dependent on hardware - can’t use old
laptop for thousands of transactions per second

development
• Throughput also dependent on hardware - can’t use old
laptop for thousands of transactions per second
• Must use server for higher throughput

Channels
• Main way of data isolation

Channels
• Separate instance of Hyperledger Fabric

Channels
• One channel doesn’t depend on another channel - they
never exchange data

Channels
• Each channel has different chaincode that is
independent
never exchange data

Channels
• If party A and party B want to communicate in private,
they create their own channel. No way for Party C to
even see that this channel exists
independent
never exchange data

Channels
• If party A and party B want to communicate in private,
they create their own channel. No way for Party C to
even see that this channel exists
independent
• Peer must be part of channel to do anything - must join
peer to channel
never exchange data

Channels Part 2
• Before you join channel, you must create channel

Channels Part 2
• Genesis block, says which parties are allowed to join
channel

Channels Part 2
• Genesis block, says which parties are allowed to join
channel
• If you later want to add another party that is not
speciﬁed if genesis block, must alter channel
conﬁguration

Chaincode
• Chaincode = smart contract

Chaincode
• How you read and update ledger

Chaincode
• SDK makes transactions and executes chaincode

Chaincode
• Only way to read/update ledger is through chaincode

Chaincode
• You use Node.js? Can use any external libraries from
NPM you want in your chaincode

Chaincode
• Chaincode must be part of channel

Chaincode
• Chaincode must be part of channel
• Why? Bc chaincode is responsible with working with
ledger, but ledger is inside a speciﬁc channel

Chaincode Part 2
• You may have one chaincode that handles everything
(this is what I will demo later) or 5,10,12 separate ones

Chaincode Part 2
• Must be installed and instantiated

Chaincode Part 2
• Must install on every peer that is inside of that channel

Chaincode Part 2
• CC (chaincode) must be part of peer

Chaincode Part 2
• Instantiation starts container of the CC make all
connections and make it ready for use

Chaincode Part 2
• When you instantiate, you must provide a policy

Chaincode Part 2
• What is policy?

Endorsement Policy
• This is consensus mechanism of Fabric

Endorsement Policy
• Operation must be veriﬁed before we update the ledger

Endorsement Policy
• Endorsement policy speciﬁes who must validate

Endorsement Policy
• Example: All peers, majority of peers, ONLY 1 peer (this
is dangerous)

Endorsement Policy
• If you have a channel with 10 CC, then every single
chaincode can have a different policy 🙀🙀🙀🙀🙀🙀
is dangerous)

Endorsement Policy
is dangerous)

Endorsement Policy
is dangerous)
• Example: for business process that is not important -
endorsement policy says only 1 peer must validate.

Endorsement Policy
is dangerous)
• Example: for business process that is not important -
endorsement policy says only 1 peer must validate.
• For vital operations (transfer money) ALL peers validate

Recap
• Inside 1 channel, can have as many chain codes as you want

Recap
• When you make a request you say I want to execute
operation on:

Recap
operation on:
1. Channel X

Recap
operation on:
1. Channel X
2. Chaincode X

Recap
operation on:
1. Channel X
2. Chaincode X
3. With these arguments

Recap
operation on:
1. Channel X
2. Chaincode X
3. With these arguments
4. With this certiﬁcate

Recap in code
var request = {
chaincodeId: ‘carauction’, //name of chaincode to execute
fcn: ‘initLedger’, // which chaincode function to execute
args: [‘’], //array of args for chaincode function
txId: fabric_client.newTransactionID(); //assign new txn id
}
var channel = fabric_client.newChannel(‘defaultchannel’);
return channel.sentTransactionProposal(request);
var fabric_client = require(‘fabric-client);
1

Recap in code
var request = {
}
1
2

Recap in code
var request = {
}
1
2
3

Recap in code
var request = {
}
1
2
3
4

Break
12 minute break

Approaches for development
Cloud
• Run docker
containers (peer,
orderer, certiﬁcate
authority, couchDb)
Local

Cloud
• Run docker
containers (peer,
authority, couchDb)
Local
• Inviting other orgs,
viewing blocks is hard

Cloud
• Run docker
containers (peer,
authority, couchDb)
• Network setup is
done for you
Local

Cloud
• Run docker
containers (peer,
authority, couchDb)
done for you
Local
• Nice interface to view
all blocks

Cloud
• Run docker
containers (peer,
authority, couchDb)
done for you
Local
• Nice interface to view
all blocks
• Easy to invite other
organizations to the
network

Our approach
Cloud - via the IBM
Blockchain Platform

How do you get started?
• Intro to Hyperledger Node SDK code pattern -
https://github.com/IBM/car-auction-network-
fabric-node-sdk
• Step by step guide on how to connect local
Node.js app to IBM Blockchain Platform

Hyperledger Fabric SDK Overview
Blockchain
network - 1 org
Certiﬁcate Authority
Orderer
Peer
(Local)
Node.js app +
Fabric SDK

Node.js app +
Fabric SDK
Blockchain
network - 1 org
Orderer
Peer
(Local)
1. Enrollment - Register
admin with Certificate Auth
Hyperledger Fabric SDK Overview
Chaincode
Database
Blockchain
network - 1 org
Certificate AuthorityCertificate Authority
Orderer
Peer
Chaincode
Database
1.

Enrollment
• Enrollment - process of generating keys and
certiﬁcates from the Certiﬁcate Authority

Enrollment
• First generate certificate for our admin identity
and use those to register a new client identity
• Enrollment - process of generating keys and
certificates from the Certificate Authority

Hyperledger Fabric SDK - Enrollment
Node.js app +
Fabric SDK
Blockchain
network - 1 org
(Local)
1.
Orderer
Peer
Chaincode
Database

Node.js app +
Fabric SDK
Blockchain
network - 1 org
Orderer
(Local)
2. Register users
🔑
Hyperledger Fabric SDK - Enrollment
Peer
Chaincode
Database
Blockchain
network - 1 org
Orderer
Peer
Chaincode
Database
Blockchain
network - 1 org
Orderer
Peer
Chaincode
Database
2.
1.

Hyperledger Fabric SDK - Transaction
Node.js app +
Fabric SDK
Blockchain
network - 1 org
Orderer
(Local)
2. Register users
3. Send transaction to peer
🔑
Peer
Chaincode
Database
Blockchain
network - 1 org
Orderer
Peer
Chaincode
Database
Blockchain
network - 1 org
Orderer
Peer
Chaincode
Database
3.
2.
1.

Using Fabric SDK - Invoking Chaincode 1/2
Node.js app +
Fabric SDK
(Local)
3. Send transaction
proposal to peer
var request = {
}
🔑
Peer
Chaincode
Database
3.

var request = {
}

Node.js app +
Fabric SDK
(Local)
3. Send transaction
proposal to peer🔑
Peer
Chaincode
Database
3.
• Check endorsement policy - which peers need to
endorse transaction

Node.js app +
Fabric SDK
(Local)
3. Send transaction
proposal to peer🔑
Peer
Chaincode
Database
3.
• Check endorsement policy - which peers need to
endorse transaction
• The transaction proposal will go to the peers in the
endorsement policy

Using Fabric SDK - Writing to the ledger
let member = {
member.balance = 5000; //set balance of member’s account
member.firstName = ‘Amy’; //set first name of member
member.lastName = ‘Williams’; //set last name of member
member.email = ‘amyWilliams@email.com’; //set email
}
await stub.putState(‘amyWilliams@email.com’,
Buffer.from(JSON.stringify(member)));
• putState takes a key value pair, and writes to the ledger

Node.js app +
Fabric SDK
Blockchain
network - 1 org
Orderer
Peer
(Local)
1.
2. Register application
2.
3. Send (txn)transaction to peer
4. Peers return endorsed txn
Using Fabric SDK - Invoking Chaincode
🔑
Peer
Chaincode
Database
4.
3.

Using Fabric SDK - Reading from the ledger
await stub.getState(‘amyWilliams@email.com’);
• getState reads the member object from the ledger.
Note, this does not create a block on the network.
• This will return:
{
balance: ‘5000’;
firstName: ’Amy’;
lastName: ‘Williams’;
email: ‘amyWilliams@email.com’;
}

Node.js app +
Fabric SDK
Peer
(Local)
4. Peers return endorsed
transaction
4.
• Check transaction proposal has not been submitted in
the past and is well formed
🔑

Node.js app +
Fabric SDK
Peer
(Local)
transaction
4.
• Check that signature is valid
🔑

Node.js app +
Fabric SDK
Peer
(Local)
transaction
4.
• Take args from chaincode function, and execute function
🔑

Node.js app +
Fabric SDK
Peer
(Local)
transaction
4.
• Take args from chaincode function, and execute function
• Transaction results + enduring peer signature is sent
back to SDK
🔑

Node.js app +
Fabric SDK
Blockchain
network - 1 org
Orderer
Peer
(Local)
1.
2. Register application
2.
3. Send (txn)transaction to peer
4. Peers return endorsed txn
Using Fabric SDK - Invoking Chaincode
🔑
Peer
Chaincode
Database
4.
3.
5. App sends endorsed txn to ordering service to add to ledger
5.

Using Fabric SDK - Ordering Service
Node.js app +
Fabric SDK
Orderer
(Local)
5. App sends endorsed txn to
ordering service to add to ledger
• App ‘broadcasts’ transaction proposal and response to
the ordering service
5.
🔑

Node.js app +
Fabric SDK
Orderer
(Local)
5.
• Order chronologically and create blocks
🔑

Node.js app +
Fabric SDK
Orderer
(Local)
5.
• Order chronologically and create blocks
• Order transactions from all channels - order
chronologically by channel and create blocks
🔑

Ledger Updated
• Each peer appends block to the channel’s chain,
•For each valid transaction the write sets are committed to
current state database
• Client is notiﬁed that transaction has been immutably
appended to the chain

Demo

Problem
1 in 10 people fall ill
every year from eating
contaminated food -
World Health
Organization

Use Case - IBM Food Trust
• One of the ﬁrst solutions in-production using blockchain

• Smarter, safer, more sustainable food supply chain

• Built on open-source framework - Hyperledger Fabric

• How to join: register your organization with the network

• Solution: Trace - allows user to search the origin of a
product by product name, Purchase Order or GTIN
(Global Trade Item Number)

• Solution: Trace - allows user to search the origin of a
product by product name, Purchase Order or GTIN
(Global Trade Item Number)
• Solution: Certiﬁcate Manager - upload regulation and
inspection documents (fair-trade, organic, etc.)

What if we ﬁnd out
that all products
from Grandma’s
Farm are
contaminated?

Food Contamination - Grandma’s Farm
IBM Developer@horeaporutiu https://tenor.com/view/michael-scott-no-nogod-please-gif-5739001

Hyperledger Fabric v. Composer
• Original project
@horeaporutiu IBM Developerhttps://www.hyperledger.org/projects/composerhttps://www.hyperledger.org/projects/fabric

• Learn Fabric SDK -
Node.js, Java
@horeaporutiu IBM Developerhttps://www.hyperledger.org/projects/composerhttps://www.hyperledger.org/projects/fabric

Node.js, Java
• Uses channels to
divide communication
between participants
https://www.hyperledger.org/projects/composerhttps://www.hyperledger.org/projects/fabric

Node.js, Java
•Status: active

Node.js, Java
• Original project • Tool for using Fabric
•Status: active

Node.js, Java
• Easy to generate
REST API
• Tool for using Fabric
•Status: active

Node.js, Java
REST API
•Status: active
• Learn Composer
modeling language

Node.js, Java
REST API
•Status: active
• Learn Composer
modeling language
• Test your contracts in
a sandbox, online

Node.js, Java
REST API
•Status: active
• Learn Composer
modeling language
• Test your contracts in
a sandbox, online
•Status: incubation

Links
• https://github.com/IBM/car-auction-network-fabric-
node-sdk
•https://hyperledger-fabric.readthedocs.io/en/
release-1.2/txflow.html

IBM Blockchain Starter Plan
•http://goo.gl/i9WZcH
• Need either business or student
email address, gmail wont work
• Takes a few business days to
process, please be patient

Hopefully you will feel like this after
IBM Developer@horeaporutiu https://www.pinterest.com/pin/427630927097492361

Questions?
http://www.freeiconspng.com/img/5437

IBM Blockchain Platform UI

Hyperleger Fabric Workshop - Denver Blockchain Week

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