Pros and Cons of Using Hyperledger for Blockchain Applications

Most developers will tell you how difficult it can be to tell apart bugs from features. The same applies when it comes to new technologies. Sometimes, there exists a thin line between pros and cons. One such example is the case of the Hyperledger Fabric. This is a Blockchain platform that’s the brainchild of IBM. There are some distinct features that distinguish Hyperledger from most of the popular Blockchain ecosystems. However, one thing you will realize is that determining whether these features are pros or cons will depend on the context in which you’re evaluating Hyperledger.

What is Hyperledger?

This is a Blockchain project that was built with the aim of advancing the use of Blockchain technology across different industries. It’s a model that was created so that entities and individual developers can use it to create Blockchain hardware systems, platforms, and applications that they can use to prop up their businesses. Hyperledger is, therefore, an open hub for industrial Blockchain development.

It’s important to distinguish Hyperledger from a platform or a tool, because as it is, Hyperledger is a project built under the Linux Foundation. There are more than 170 members on the team working on Hyperledger drawn from different industries such as manufacturing, technology, supply chain, credit card services, healthcare, finance, and aeronautics.

Hyperledger is an open-source project, given that it’s a Linux project. It’s only through open-source development that such projects open up for true collaborative software development. This is an approach that ensures interoperability, longevity, transparency, and more importantly, will help establish Blockchain technologies as platforms upon which future developments in technology can be created. Hyperledger has created a community of software developers who work together to create Blockchain platforms and frameworks.

The following are the core goals of the Hyperledger project:

• Enlighten the public about the opportunities available in the Blockchain technology
• Creating open-source, enterprise-level distributed ledger frameworks, and codes that support different businesses
• Creating a community-driven infrastructure complete with business and technical governance
• Establish technical communities within which Blockchain platforms can be developed, including field trials and deployment
• Promoting the Blockchain community through a toolkit approach

There are several businesses that are supported, incubated and promoted under Hyperledger, especially those that are leveraged on the Blockchain platform.

The following are five distinct frameworks that are supported under this initiative:

• Iroha
• Indy
• Sawtooch
• Fabric
• Burrow

Other than that, Hyperledger also maintains tool suites that are important for the deployment and maintenance of Blockchain projects, data analysis, collaborating across projects and lots of other functions. Some of these tools include Quilt, Explorer, Composer, and Cello.

Hyperledger Fabric 101

This was the pioneering framework in the Hyperledger incubation center, and the first successful project to exist. Of all the Hyperledger platforms, this is the most advanced and mature. The fabric also features the most vibrant and active developer community. It was established as an IBM project before it was advanced to become a foundation upon which modular architecture Blockchain apps would be developed. Therefore, Fabric is a plug and play platform.

According to IBM, Fabric is built to support enterprise-level Blockchain platforms which can be scaled as more members come on board. For this reason, Fabric can handle over 100 transactions a second in some of the larger user ecosystems.

Features of Hyperledger Fabric Architecture

• Enterprise Support: The brands behind Fabric are industry leaders like Cisco, Intel, and IBM. Therefore, Fabric enjoys, among other things, stability in a dynamic industry. This also gives it a confidence boost, especially for those who are still uncertain about the future of this project. That being said. However, there are developers who are not very keen on building their projects on a platform that’s largely influenced by some of the industry leaders in the tech world.
• Modular Architecture: Developers are encouraged to build components that can take advantage of the plug and play nature of Hyperledger. This is possible thanks to the robust architecture which is designed targeting future developments in the Blockchain technology.
• Private Channels: Fabric uses smart contracts and distributed ledgers, which make it possible to create private channels on it. In case you’re running an enterprise-level Blockchain network, and you would like to share data with specific entities within your network, you can easily create a private channel on Fabric just for the concerned entities. Other than that, all transactions are not visible to all users on the network. By allowing private transactions, Fabric takes on Ethereum whose structure is all about transparency. However, when you consider industries like the healthcare sector, privacy is one of the most important things, making Fabric ideal for practitioners.
• Transparent Process: While the transactions on Fabric might be obfuscated, the development process is not. In fact, the core teams behind Hyperledger have worked hard to create a healthy balance between transparency in the development process and attaining important milestones.
• Smart Contracts: Fabric also uses (chain code) smart contracts just like Ethereum does. Given the benefits of smart contracts, this is an advantage.

No Coin, No Cryptocurrency

Depending on how you look at it, the fact that Hyperledger doesn’t have a coin or established cryptocurrency can be an advantage or disadvantage. You don’t need built-in currency to use Hyperledger, unlike Ethereum. However, you can use the smart contracts to create your digital token or native currency. One of the reasons why the dev team working on Hyperledger is not keen on pushing a currency into the project is to avoid some of the political concerns that follow suit, especially about maintaining global consistency.

This effectively makes Hyperledger unique if you’re looking at the likes of Ethereum and Bitcoin. This was a strategic decision that was also aimed at distancing Hyperledger from the scandals that have been linked to cryptocurrency in the recent past. Regarding technological development, this was a move in the right direction. The fact that Hyperledger is not built to work as a currency is another reason why it’s ideal for enterprise-type business apps.

Ethereum vs. Fabric

Ethereum provides the best comparative distinction for Fabric. By design, Ethereum is built for the B2C market (business to consumer), especially with the focus on a public Blockchain, smart contracts, and decentralized apps.

On the other hand, enterprises that are looking for an app development platform that has the best privacy and permission support systems can look forward to using Fabric. The modular architecture behind Fabric makes it flexible for developers’ needs, and this explains why the target audiences for Fabric businesses are who plan to use Blockchain technology to streamline their business.

The giant tech brands behind Hyperledger, if anything to go by, are an indication that it’s primarily for enterprise-based solutions. However, this doesn’t set it apart from Ethereum by much, because Ethereum also works for enterprise clients.

Private, Public and in Between

For permissioned networks, Fabric offers the best platform for development. All the entities within the Fabric network are identifiable. According to IBM, most of the scenarios, especially in healthcare and finance demand that the identities of those in the network are known, especially those who have access to the data in the network. While the transactions can remain private, the individuals in the network should not. This is the concept behind a permissioned Blockchain.

Everything on a public Blockchain is always visible. Anyone on the Blockchain is able to read and create new blocks on the chain, as long as they follow the inherent rules. In fact, one of the best examples of a public Blockchain is Bitcoin.

Access to a private Blockchain is only through invitation. There are rules in place on a private Blockchain to validate any new nodes before they are added, or they can be added by the persons who have created the network. A private Blockchain is, therefore, ideal for internal processes in an entity.

A permissioned Blockchain can also be referred to as a federated or consortium Blockchain. This is a blend between a private and public Blockchain. On such a network, transactions are only visible to those individuals whom permission is granted, but not the entire network.

From a business perspective, this makes a lot of sense, allowing access to information for a section of the audience to whom it concerns.

A group of banks, for example, might share some information with one another. The members of this group can agree on a set of rules determining how the Blockchain will operate. Therefore, they can either choose to make Blockchain access public, or private.

For enterprise customers, these are important developments. In fact, this is one of the reasons why Hyperledger appeals to enterprise customers. There are some identity management solutions in Hyperledger that can also be integrated to enterprise trust systems and standard domain authority systems. A public Blockchain is established under a trustless network. Hyperledger, on the other hand, is built to address business customer needs and can be easily integrated into pre-existing systems without any issues.

Hyperledger is Still New

While Fabric is the most advanced and mature Hyperledger project, Hyperledger is not so far off. According to one of the developers behind Hyperledger, there are some common concerns that can be expected of Hyperledger. These include insufficient technological understanding, lack of proven use examples, an inadequate talent pool, or a shortage of IT skills. The good thing about this project is that it’s backed by risk-taking pioneers, and it’s a project that has major potential. As a result, it should be a success.

There’s still so much to be done on Fabric to make it claim its rightful place in the technological revolution that we’re experiencing at the moment. There’s a lot to be done, especially regarding collaboration and innovation. The fabric is also primed to interact with all the other Hyperledger projects currently in development.

Is This a Solution without a Problem?

Given the allure of the Blockchain revolution at the moment, it’s understandable that there are lots of interested parties who are looking to leverage Blockchain technology to solve some of their business problems, though they really don’t need it just yet.

The fact is that Fabric will be advanced further over the coming years. However, what’s more, important is looking at the use cases relevant to Fabric. More often, the challenge is about the market structure, not the technology. What companies need to realize is that it’s their mandate to change their market structure, because Blockchain will not do it for them. In most cases, this would also involve interacting with their respective regulators.

The technical challenges behind this are huge. There are lots of bits and pieces that need to be addressed, which means that Hyperledger will not always fit into an entity’s plans as it’s supposed to. This is common with any new technology that’s being adopted.

Outside the tech field, Blockchain is still a new concept to many entities and people. Therefore, accepting and migrating to Blockchain ecosystems might not be a very easy process, and it will be a while before all companies accept it. Besides, look at it from a transactional point of view. Those who have knowledge of the Blockchain systems will agree that Blockchain transactions are immutable and binding. However, the legal confines still have a lot of grey areas. Legally, for example, how would you prove that a Blockchain transaction you just concluded can be accepted as a legally binding mortgage contract?

It’s also not easy to get regulators to start using Blockchain to handle their normal tasks. Imagine using Blockchain systems to handle shipping documents and processes. This wouldn’t be easy. This is one of the broad problems that Blockchain platforms are going to grapple with for a while. Being accepted as the norm, and replacing the systems that are currently in use, or working alongside these systems might remain a challenge.

Given that Hyperledger is an IBM project, this is a bag of mixed blessings. While this brings confidence, especially on the development front, there are also challenges for those who shy away from engaging in development environments with tech giants, especially their competitors.