Introduction to Hyperledger Fabric, some of its use cases, architecture, and roadmap.

1. Hyperledger Fabric
Arnaud J Le Hors
Senior Technical Staff Member Web & Blockchain Open Technologies, IBM
Member of the Hyperledger Project Technical Steering Committee
May 28, 2018

2. © 2018 IBM Corporation
Hyperledger Fabric – Blockchain for Business
Open Governance
Anyone can join or contribute
Built from the ground up for enterprise
With a maturity model to help companies move to production
Performance
Designed for speed and scalability
Confidentiality and privacy
Built-in channels for isolation and membership services for signing and
encryption. Supports IBM High Security Business Network.
Modularity and flexibility
Choice of consensus algorithms and programming languages

3. © 2018 IBM Corporation 3
Legitimize Diamonds and Reduce Fraud
What?
• Track diamonds across supply chain from mine to retail
How?
• Shared ledger for storing digital certification with supporting
material
Benefits
1. Protect against the occurrence of fraud, theft, trafficking
and black markets
2. Assist in the identification and reduction of synthetic stones
being labelled as authentic
3. Increase speed of transparency for cross border
transactions for insurance companies, banks and claimants

4. © 2018 IBM Corporation 4
Food Safety
What?
• Provide a trusted source of information and
traceability to improve transparency and efficiency
across the food network.
How?
• Shared ledger for storing digital compliance
documentation, test results and audit certificates
Benefits
• Reduce impact of food recalls through instant
access to end-to-end traceability data to verify
history in the food network and supply chain.
• Help to address the 1 in 10 people sickened and
400,000 fatalities WW which occur every year from
food-born illnesses.

5. © 2018 IBM Corporation
Global Financing: Dispute Resolution
What?
• IBM Global Finance provides a $41bn channel
financing per year. There are a number of
disputes that take time to resolve and can
lock up transactions costing time and money
How?
• Blockchain provides visibility and provenance
end-to-end across supply chain
Benefits
1. Reduced dispute resolution time by 75%
2. Released working capital from $100m
3. Combine IGF and Supplier info to further
expand benefits further
4. In production since Sept 2016

6. © 2018 IBM Corporation 6
What?
• Ninety percent of goods in global trade are carried by the ocean
shipping industry each year. Costs associated with trade
documentation processing and administration are estimated to be
up to one-fifth the actual physical transportation costs.
How?
• A new blockchain solution from IBM and Maersk will help manage
and track the paper trail of tens of millions of shipping containers
across the world by digitizing the supply chain process.
Benefits
1. Enhance transparency and the highly secure sharing of
information among trading partners and customs officials.
2. Reduce fraud and errors, reduce the time products spend in the
transit and shipping process, improve inventory management
and ultimately reduce waste.
3. Potential to save the industry billions of dollars.
Cross Border Supply Chain

7. © 2018 IBM Corporation
Endorser
Committer
Chaincode
Event
Ledger
Peer
Based on Source : https://jira.hyperledger.org/browse/FAB-37
Membership Srvc
SDK
Keys
Application
No SPoF
No SPoT
1: Submit Proposal
2: Execute CC
3: Return Endorsed Response
4: Submit Tx 6: Deliver batch
7: Validate & Commit Tx
5: Order TXs
in a batch
according to
consensus
o-service
Hyperledger Fabric v1 Architecture

8. © 2018 IBM Corporation
Key characteristics of Hyperledger Fabric v1.0
• Better reflect business processes by specifying who endorses transactions
• Support broader regulatory requirements for privacy and confidentiality
• Scale the number of participants and transaction throughput
• Eliminate non deterministic transactions
• Support rich data queries of the ledger
• Dynamically upgrade fabric and chaincode
• Support for multiple credential and cryptographic services for identity
• Support for ”bring your own identity”
8

9. © 2018 IBM Corporation
Nodes and roles
Committing Peer: Maintains ledger and state. Commits transactions. May
hold smart contract (chaincode).
Endorsing Peer: Specialized committing peer that receives a transaction
proposal for endorsement, responds granting or denying endorsement.
Must hold smart contract
Ordering Nodes (service): Approves the inclusion of transaction blocks
into the ledger and communicates with committing and endorsing peer
nodes. Does not hold smart contract. Does not hold ledger.

10. © 2018 IBM Corporation
Ordering Service
The ordering service packages transactions into blocks to be delivered to peers.
Communication with the service is via channels.
Different configuration options for the ordering service include:
– SOLO
• Single node for development
– Kafka : Crash fault tolerant consensus
• 3:n nodes minimum
• Odd number of nodes recommended
– SBFT : Byzantine fault tolerant consensus
• 4:n nodes minimum
Ordering-Service
OO
O O

11. © 2018 IBM Corporation
Channels
Separate channels isolate transactions on different ledgers
– Chaincode is installed on peers that need to access the
worldstate
– Chaincode is instantiated on specific channels for
specific peers
– Ledgers exist in the scope of a channel
• Ledgers can be shared across an entire network of peers
• Ledgers can be included only on a specific set of participants
– Peers can participate in multiple channels
– Concurrent execution for performance and scalability
OO
O O
E1
E0
Ordering-Service

12. © 2018 IBM Corporation
Single Channel Network
• All peers connect to the same
system channel (blue).
• All peers have the same chaincode
and maintain the same ledger
• Endorsement by peers E0, E1, E2
and E3
Fabric
E0
A
B
E3
E2
E1
A
B
A
B A
B
OO
O O
Endorser Ledger
Committing Peer Application
Ordering Node
Smart Contract
(Chaincode)
Endorsement
Policy
Key:
Client
Application
S
D
K
Ap
Ordering-Service

13. © 2018 IBM Corporation
Multi Channel Network
• Peers E0 and E3 connect to the red
channel for chaincodes Y and Z
• Peers E1 and E2 connect to the blue
channel for chaincodes A and B
Fabric
E0
Z
Y
E3
E2
E1
A
B
A
B Y
Z
OO
O O
Client
Application
S
D
K
Ap
Ordering-Service
Client
Application
S
D
K
Ap
Endorser Ledger
Committing Peer Application
Ordering Node
Smart Contract
(Chaincode)
Endorsement
Policy
Key:

14. © 2018 IBM Corporation
Ap
Installing and instantiating chaincode
E0
A
B
E1
A
B
E2
B
P3
A
D
Fabric
Ordering-Service
O
O O
O
Operator installs then instantiates
Operator installs smart contracts with
endorsement policies to appropriate
peers: E0, E1, E2, P3, and not P4
Operator instantiates smart contract
on given channel. One-time initialization
Policy subsequently available to all
peers on channel, e.g. including P4
P4
O
A
A
Endorser Ledger
Committing Peer Application
Ordering Node
Smart Contract
(Chaincode)
Endorsement
Policy
Key:

15. © 2018 IBM Corporation
Endorsement Policies
Describe the conditions by which a transaction can be endorsed. A transaction
can only be considered valid if it has been endorsed according to its policy.
• Each chaincode is associated with an Endorsement Policy
• Default implementation: Simple declarative language for the policy
• ESCC (Endorsement System ChainCode) signs the proposal response on the endorsing peer
• VSCC (Validation System ChainCode) validates the endorsements
Chaincode ESCC VSCC Ledger
Propose - Execute - Respond
Order - Deliver
Validate - Commit
Sign Policy
Peer Peer

16. © 2018 IBM Corporation
Endorsement Policy Examples
Examples of policies:
• Request 1 signature from all three principals
– AND('Org1.member', 'Org2.member', 'Org3.member')
• Request 1 signature from either one of the two principals
– OR('Org1.member', 'Org2.member')
• Request either one signature from a member of the Org1 MSP or (1 signature from a
member of the Org2 MSP and 1 signature from a member of the Org3 MSP)
– OR('Org1.member', AND('Org2.member', 'Org3.member'))

17. © 2018 IBM Corporation
Membership Services Provider API
Membership Services Provider API
• Pluggable interface supporting a range of
credential architectures
• Default implementation calls Fabric-CA.
• Governs identity for Peers and Users.
• Provides:
• User authentication
• User credential validation
• Signature generation and verification
• Optional credential issuance
• Additional offline enrollment options
possible (eg File System).

External
Certificate Authority
Fabric-CA
Certificate Authority

Implements
Fabric-CA
API
External
CAAPI
Membership
Services
Provider API
Peer /
Client /
Orderer

18. © 2018 IBM Corporation
Fabric-CA Details
Fabric-CA
• Default implementation of the
Membership Services Provider
Interface.
• Issues Ecerts (long-term identity)
• Supports clustering for HA
characteristics
• Supports LDAP for user authentication
• Supports HSM
Ecert
Fabric-CA
cluster DB
LDAP
Authenticate
Enroll ID, secret
HSM
Root
Certificate Authority

Membership
Services
Provider API
Fabric-CA API

19. © 2018 IBM Corporation
Blockchain
User
New User Registration and Enrollment
U
3. Enroll(Enroll ID, secret)
wallet
Registration and Enrollment
• Admin registers new user with
Enroll ID
• User enrolls and receives
credentials
• Additional offline registration and
enrollment options available
Client
Application
SDK
Operator
O
Client
Application
SDK
1. Register(Enroll ID)
returns( secret)
returns Ecert
Ecert

Fabric-CA

20. © 2018 IBM Corporation
World state
Blockchain
block
…
Application Level Encryption
Ledger
Encrypt tx input
Client
Application
SDK
Chaincode
Decrypt tx input
Encrypt world-state data
tx
encryptedencrypted data
Blockchain
User
wallet
Peer
Data Encryption
Handled in the application domain.
Multiple options for encrypting:
• Transaction Data
• Chaincode*
• World-State data
Chaincode optionally deployed with
cryptographic material, or receive it
in the transaction from the client
application using the transient data
field (not stored on the ledger).
*Encryption of application chaincode
requires additional development of
system chaincode.
tx
SDK signs with Ecert

21. © 2018 IBM Corporation
WorldState Database
• Pluggable worldstate database
• Default embedded key/value implementation using LevelDB
Support for keyed queries, but cannot query on value
• Support for Apache CouchDB
Full query support on key and value (JSON documents)
Meets a large range of chaincode, auditing, and reporting requirements
Will support reporting and analytics via data replication to an analytics engine such as Spark (future)
Id/document data model compatible with existing chaincode key/value programming model
CouchDBSHIM
LevelDB
Chaincode

22. © 2018 IBM Corporation
Blockchain
block
txn
1. Client Application in
using Hyperledger Fabric
Client (HFC) SDK
2. Smart Contract
implemented using
chaincode – managing
the World state
2Smart
Contract
submits
recorded
Application Developer’s Focus: client + chaincode
accesses
event
emits
emits
Ledger
‘get’, ‘put’, ‘delete’
!
!
World state
txn txn
SDK
1Client
Application

23. © 2018 IBM Corporation
Getting started with Hyperledger Fabric
 Build Your First Network (BYFN) – Network administrator
 A simple network with 2 organizations running 2 peers, with one channel, a simple chaincode
 Dockerhub images
 Uses predefined enrollment certificates and « Solo » Ordering Service
 Extend Your First Network – Network administrator
 Adds a 3rd organization to BYFN
 Develop Your First Application – Application developer
 A simple Node.js application
 Start in devmode (minimal set up), then move to network (several peers), and security
(membersrvc)
 Chaincode: init(), invoke() – start developing in devmode
 Several examples to start from (marbles, car lease demo)

24. © 2018 IBM Corporation
More on using Hyperledger Fabric
 Application integration via:
APIs: gRPC, REST (0.6 + coming back)
4 SDKs: Node.js, Python, Java, Go
 Chaincode: Go, Node.js, Java coming (back)
 CLI: launch + interact with peers and interact with membersrvc/fabric-ca
Enroll / login
Peer start + stop
Channel create, join
Chaincode install, instantiate, invoke, query, upgrade
 Getting help: docs, wiki, RocketChat, mailing list

25. © 2018 IBM Corporation
What's next for the Hyperledger Fabric community?
• Hyperledger is the fastest growing project at the LF
• Hyperledger Fabric
• Rapid growth (code & community) – 27 companies and 159+ devs
• Finds itself needing to "slow down" at times to ensure stability
• Publishing periodic stable releases (quarterly is the plan)
• Working through various development workflow approaches
• Toolchain consistency between various adjacent projects is an issue
• Working towards Hyperledger Composer 1.0 release in 2Q 2018
• Working towards Hyperledger Fabric 1.2 release in 2Q 2018
• Integration across projects (Burrow, Indy, Sawtooth)
• Architecture WG and Performance and Scale WG deliverables
Managing Growth

26. © 2018 IBM Corporation
Fabric Release Strategy
• Generally, we intend roughly monthly patch releases for the current
major.minor release, and quarterly minor releases.
• We are looking to ensure live upgrade from one minor release to the next
(including patch releases)
• All planning and current status maintained in JIRA and summarized in the wiki
and can be followed on #fabric-release and #fabric-scrum on RocketChat
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27. © 2018 IBM Corporation
Fabric v1.1 – Released in March 2018
Key Features:
• Node JS chaincode
• Encryption library
• Common "connection profile" definition for client applications
• Performance and scale + Serviceability enhancements
• Fabric 1.1 upgrade and compatibility
Tech Preview (requires custom build):
• Side DB / private channel data
• Idemix MSP / Zero Knowledge Proof
• Service Discovery (no SDK support)
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28. © 2018 IBM Corporation
Fabric roadmap
Fabric 1.2
• Private Channel Data
• Java chaincode
• Service Discovery
• Pluggable endorsement and validation
• Tech Preview: Idemix MSP / Zero Knowledge Proof
Fabric 1.3 (no consensus yet)
• Ledger Archive and Pruning
• RAFT Consensus
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29. © 2018 IBM Corporation
Fabric v1.2 Features (no consensus yet)
• Ledger Archive and Pruning
• RAFT Consensus
• Tech Preview of Zero Knowledge Proof
• Foundation for LTS release?
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30. © 2018 IBM Corporation
Hyperledger Composer: Accelerating time to value
The goal of Hyperledger Composer is to improve
productivity by providing a rich suite of tools addressing:
• Business Network Definition
• Rapid Application Development
• Tools and generators
• Defined operations for assets, participants and
transactions with intuitive visual modeler UI
• Existing System Integration
Business
Application
Hyperledger Composer
Blockchain (Hyperledger
Fabric)
Saves
time
Reduces
risk
Increases
flexibility
Increases
understanding

31. Thank You!
lehors@us.ibm.com
@lehors