In recent times, Non-Fungible Tokens (NFTs) seem to have captured the cultural zeitgeist. Interest in the concept has skyrocketed, evidenced by the public coverage about it, as well as a huge explosion in the volume of transactions of the same.
However, elements like NFTs and cryptocurrencies are ultimately part of a financial system — a Decentralized Financial System for sure, but still, a store of value, a medium of exchange, and consequently, a financial instrument.
Vitalik Buterin told Time in March 2022 that, ultimately, the goal of crypto is to accomplish meaningful change in the world. The world does not consist of just financial instruments and concepts. Even though they are critical to its functioning, it is not where the world ends and begins.
This is where Soul Bound Tokens (SBTs) come into the picture. The root of this concept is a paper authored by economist & social technologist E. Glen Weyl, lawyer Puja Ohlhaver, and Ethereum creator Vitalik Buterin that outlines his concept for a “DeSoc” — A Decentralized Society. Any societal framework in the field of anthropology has an element of individual expression. This is attributed in the form of relationships, affiliations, and credentials. In modern society, this is manifested in the forms of degrees, licenses, titles, and so on.
SBTs are NFTs that can not be transferred after they are received. The paper envisions that SBTs would be non-tradable tokens, awarded to a “Soul” unilaterally. The token would provide the said soul with an attribute. This is completely non-tradable and aims to act as an intrinsic “label”, instead of a token that aims to act as a financial instrument in any shape or form. Once you receive an SBT, you hold it in a Soul-wallet forever.
How will SBTs change the concept of our Identity and other aspects of our society?
As mentioned before, the underlying concept relies on “Souls”, which are entities to which SBTs are accrued. The ideal scenario is that the SBTs accrued by a soul manifest qualifications, connections, and memberships.
For example, SBTs could be issued for attending a developer conference, or any other group activity. In a theoretical sense, an SBT could exist for a family name, with membership implying being a part of an actual family.
SBTs have the potential to act as very efficient social or commercial credit systems, with SBTs displaying educational credentials such as degrees, work history, and rental contracts.
The core distribution of NFTs is random at best, being algorithmically airdropped into wallets. However, in the case of SBTs, “Souldrops” is envisioned as a way to create a genuine sense of community and form meaningful groups. While an NFT Drop may be executed mathematically, SBTs enable an entity like, say, a DAO, to drop tokens to Souls that may hold a certain intersection of SBTs. As Vitalik states in his paper, “a non-profit whose mission is to plant trees would drop governance tokens to Souls who hold a mix of environmental action SBTs, gardening SBTs, and carbon sequestration tokens.”
The end goal of these concepts is to create a Decentralised society where Souls and the communities formed at the intersection of all the Souls based on their SBT holdings can create “plural network groups”.
The concept of “plural network groups”, as stated in the paper, envisions that networks, i.e., interactions and communication, are the most critical aspects of economic growth. Trade-in Goods and services will occur through communications. A theoretical severing of the lines of communication across the world would instantly stifle all world trade, and create chaos in society. This problem becomes even more likely when these channels are highly centralized and exist in an oligopoly-like market structure.
“Imagine a world where most participants have Souls [digital wallets] that store SBTs corresponding to a series of affiliations, memberships, and credentials,” the paper mentions.
Some of the use cases for SBTs include:
By connecting Soulbound tokens to their NFT collections, artists may rid the NFT industry of unscrupulous actors that sell arbitrary NFT collections in the name of great artists. Artists may also, thus, testify to any scarcity constraints that they intend to impose. SBTs may thus assist NFT artists in establishing their reputations within the digital art communities.
Soulbound tokens may be used to purchase event tickets. After all, event tickets are often non-transferable, making it an ideal use case for SBTs. SBTs might be utilized in conjunction with events to generate special airdrops, which Buterin refers to as ‘Souldrops.’
SBTs may also serve as a representation of our credit reports. This provides lenders with a complete credit profile of a borrower. Even the loan itself might be accompanied by a revocable but non-transferable SBT. When the loan is paid off, the SBT may be destroyed or replaced with evidence of payment. As a result, individuals would be less likely to conceal their ongoing debts.
SBTs can have a significant impact on the future of documentation and certification. Because a Soul can create a limitless number of Soulbound tokens, it has the ability to transform documentation from paper to paperless by introducing it to the digital network. SBTs may, thus, find utility among educational institutions in offering degree certificates. It can act as a repository of one’s credentials. Once added to your Soul, SBTs may also reflect your skill set and abilities. Soulbound tokens may be used to represent a wide range of personal information, including academic degrees, personal data, and even professional certifications and job experience. As a result, SBTs may one day emerge as a CV for Web3 users.
What could be DeSoc’s end game and how is it building on the existing Decentralized financial and information exchange infrastructure?
Vitalik has stated in recent media interactions that he is highly concerned about increasing inequality and the overarching image of crypto assets as an engine for pure profits. He is not entirely wrong.
DeFi assets are overwhelmingly turning into gambits for acquiring “private property” aka aforementioned assets, and instantly tapping into markets with the sole goal of generating quick wealth. Similar examples of rent extraction exist in the contemporary real estate market, where quick gambits from entities with high amounts of the capital corner the market, create overwhelming, unilateral spheres of influence, and drive out a majority of rent-seekers.
However, DeSoc is aiming to enable efficient governance and decision-making mechanisms by creating a framework to enable trust and cooperation. Critics point out that such “credit systems” may theoretically result in dystopian ecosystems like China’s social credit system, where certain social groups are automatically filtered out due to the presence of certain SBTs.
While the overarching technology and concept are likely not ready for a large-scale undertaking of planning and implementation in modern contemporary society, the concept and its anthropological implications have a huge potential in the digital communities of today to foster trust, keep bad elements out, and, as Vitalik says, create “plural network goods”.
The GBA has published the Blockchain Maturity Model that details the generic requirements for a blockchain solution to be trusted by and acquired by enterprise and government entities. However, the GBA Finacial Services Working Group is developing a set of requirements and expectations for banking and financial services solutions.
These blockchain standards apply to solutions that support one or more of the following sectors:
Broker Trading/Financing
Capital Markets
CBDC’s
Central Banks and National Banks
Credit Cards
Debit Cards
Exchange-Traded Derivatives
Governments
Institutional Banking
Institutional Investing
Local Economy
Managed Funds
Market making
Over-the-Counter (OTC) Derivatives
Retail Banking
Retail Investing
Structured Products
Supernational Bodies / NGOs
Take the opportunity to proactively define the standard rather than retroactively respond to it. To be part of this initiative, log into the GBA website and join the Banking & Finance Working Group.
The World Wide Web is the key tool used by billions of people to distribute information, read and create it, and connect with others over the internet. The web has evolved considerably over time, and its contemporary uses are almost unrecognizable from its inception. The development of the web is often classified into three stages: Web 1.0, Web 2.0, and Web 3.0.
What is Web 1.0?
Web 1.0 was the very first version of the internet. Consider the read-only or syntactic web to be Web 1.0. The majority of participants were content consumers, whereas the creators were mostly web developers who produced websites with predominantly textual or visual content. Web 1.0 existed approximately between 1991 and 2004.
In Web 1.0, sites supplied static content rather than dynamic hypertext mark-up language (HTML) content. The data and content came from a static file system rather than a database, and there was limited interactivity on the web pages.
What is Web 2.0?
Most of us have only seen the web in its present form, which is also known as Web 2.0, the interactive read-write web, and the social web. You don’t have to be a developer to participate in the Web 2.0 creation process. Many applications are built in such a manner that anybody can create content.
You may think and share your ideas with the rest of the world. In Web 2.0, you may also submit a video and make it accessible for millions of people to view, engage with, and comment on. Web 2.0 apps include YouTube, Facebook, Flickr, Instagram, Twitter, and other social media platforms.
Web technologies like HTML5, CSS3, and Javascript frameworks like ReactJs, AngularJs, VueJs, and others enable businesses to create new concepts that allow users to contribute more to the social web. As a consequence, since Web 2.0 is designed around people, developers just need to provide a system to empower and engage users.
Consider how popular applications like Instagram, Twitter, LinkedIn, and YouTube were in their early days compared to how they are now. All of these businesses generally go through the following steps:
The organization releases an app.
It tries to enroll as many individuals as possible.
The user generates content and engagement.
Then it profits from its user base.
When a developer or organization develops a successful app, the user experience is often exceedingly smooth, particularly as the program’s popularity rises. This is why they were able to get momentum so quickly in the first place. Many software companies were unconcerned about monetization at first. Instead, they were primarily concerned with acquiring and maintaining new customers, although they would ultimately start profiting.
However, the constraints of accepting venture capital often affect the life cycle and, ultimately, the user experience of many of the services we use today. When a company seeks venture money to build an application, for example, its investors often anticipate a return on investment in the tens or hundreds of times that they put in. This implies that, rather than following a long-term, organic development plan, the firm is typically driven down one of two paths: marketing or data sales.
More data implies more targeted marketing for several Web 2.0 businesses, including Google, Facebook, and Twitter. This leads to more clicks and, as a consequence, more ad revenue. The use and centralization of user data are critical to the operation of the web as we know and use it today. As a consequence, data breaches are fairly frequent in Web 2.0 apps. There are even websites devoted to monitoring data breaches like “have i been pwned?” and notifying you when your personal information has been compromised.
In Web 2.0, you have no control over your data or how it is kept. In reality, corporations regularly monitor and keep user data without their knowledge or consent. All of this data is then owned and managed by the companies in charge of these platforms. Furthermore, when governments feel someone is expressing a viewpoint that opposes their propaganda, servers are routinely taken down or bank accounts are seized. Using centralized servers, governments may easily intervene, control, or shut down programs.
Governments routinely meddle in banks since they are also computerized and centralized. They may, however, suspend bank accounts or limit access to money during times of extreme volatility, excessive inflation, or other political upheavals. Many of these issues will be addressed by Web 3.0, which seeks to fundamentally rethink how we build and interact with apps.
What is Web 3.0?
Web 3.0, also known as Semantic Web or read-write-execute, is the phase (starting in 2010) that suggests the future of the web. Artificial Intelligence (AI) and Machine Learning (ML) allow computers to evaluate data in the same manner that people do, allowing for the intelligent development and dissemination of useful information based on a user’s individual requirements.
Although there are several major differences between Web 2.0 and Web 3.0, decentralization is the defining parameter. Web 3.0 developers almost never design and deploy programmes that operate on a single server or store data in a single database (usually hosted on and managed by a single cloud provider).
Web 3.0 applications are based on blockchains, which are decentralized networks of many peer-to-peer nodes (servers), or a combination of the two. These applications are known as decentralized apps (DApps), and the term is often used in the Web 3.0 ecosystem. Participants in the network (developers) are rewarded for providing the best quality services in order to maintain a robust and secure decentralized network.
Many leading companies are presently conceptualizing and developing Web3, with Ethereum standing out in terms of early user acceptance and scope. While Web3’s underlying architecture has not yet been determined, its decentralized nature is a key component of its planned design.
What is decentralization?
Web3 will allow decentralized access to linked data, in contrast to Web 2.0, which predominantly maintains data in centralized places. Web3 will allow individuals to engage with data in combination with AI and machine learning technologies, merging Tim Berner Lee’s idea of the Semantic Web. Web3 will essentially allow decentralized applications to replace centralized social networks while enabling users to retain control of their data.
The Advantages of Decentralization
Web3 is envisioned as returning data ownership to end-users via decentralization. The ambition of Web3 is to construct new web protocols and infrastructure that should enable developers to build applications where users bring their own data and identity is no longer bound to any one platform.
A decentralized web is based on a peer-to-peer network that is built on a user community. Instead of a group of powerful servers, this group’s own internet-connected nodes would host websites or apps. Each website or programme is dispersed among hundreds of nodes on various devices. This procedure decreases the likelihood of a server breakdown, hackers shutting down a website, or an oppressive government seizing and/or restricting viewpoints. The decentralized web is related to the dark web, which was designed by the US government to enable individuals and journalists under repressive regimes to express themselves freely, safeguard whistleblowers, and keep users safe by maintaining their identities. The anonymity and decentralized structure of the black web also allows criminals to operate freely, which is a possibility for Web3.
The Internet Archive, as one of the world’s greatest nonprofit libraries of information and culture, including free books, music, movies, software, and websites, has been critical in ensuring that the internet stays free and open. As such, it has been one of the primary organizers of DWeb events since 2014, bringing together groups of individuals who are laying the groundwork for a decentralized web.
How Is the Decentralized Web Used Today?
Although the notion of a decentralized web has been explored for many years, the majority of the web remains centralized in reality. The Ethereum network is now the biggest community-run decentralized network, powering the cryptocurrency ether (ETH) and providing access to hundreds of decentralized apps. Decentralized applications, or Dapps, are accessible for banking, arts, collectibles (including the notorious NFTs), gaming, and technology.
Blockchain protocols power the decentralized networks that enable smart contracts and trustless transactions. There are EVM (Ethereum Virtual Machine) based protocols like Ethereum, Polygon, BNB Chain, Avalanche, Fantom, etc. And there are substrate-based protocols like AXIA, Polkadot, Astar Network, etc. And lastly, there are other protocols like Solana, Cosmos, Phaeton
Financial Dapps are programmes that concentrate on developing cryptocurrency services to cover services for payments, insurance, lending, trading, borrowing, investments, etc. Examples – Aave Protocol, Uniswap, Compound, Nexus Mutual, dYdX
Digital ownership is emphasized in arts and collectibles Dapps via Non Fungible Tokens (NFTs), enhancing the revenue potential for content creators. These applications include art and fashion, as well as digital collectibles and music. Examples – OpenSea, Rarible, Unicus
Gaming Dapps are concerned with the development of virtual environments for gaming and engaging with other users. The key distinction here is that these Dapps make use of collectibles with real-world value. Examples – Axie Infinity, Sandbox, Gods Unchained
Dapps in technology focus on decentralizing developer tools, embedding crypto-economic systems into current technology, and developing markets for open-source development work. Examples – ChainLink, The Graph, Alchemy
The architecture of Web3 apps
Web 3.0 apps (or “DApps”) have an entirely different architecture from Web 2.0 applications.
Consider WordPress, a blogging platform that allows users to post their own content and engage with that others. It may seem easy as a web 2.0 application, but there is a lot that goes into such a platform’s design to make it all possible:
First, critical data such as users, posts, tags, comments, likes, and so on must be stored somewhere. This necessitates a database that is regularly updated.
Second, WordPress’s business logic must be defined in backend code (written in a language such as Node.js, Java, or Python). For instance, what happens when a new user registers, creates a new blog, or comments on someone else’s blog?
Third, WordPress’s UI logic must be defined in frontend code (usually written in JavaScript, HTML, and CSS). What does the site look like and what happens when a user interacts with each piece on the page?
To summarise, when you publish a blog post on WordPress, you connect with its frontend, which communicates with its backend, which communicates with its database. This code is all housed on centralized servers and sent to consumers through an internet browser. This is an excellent high-level overview of how most Web 2.0 apps function now.
In contrast to Web 2.0 apps such as Medium, Web 3.0 removes the middleman. There is no centralized database to hold the application state, and no centralized webserver to house backend logic.
Instead, you may use blockchain to develop applications on a decentralized state system maintained by anonymous internet nodes. Blockchains are state machines that are created with a genesis state and have extremely rigorous rules (i.e., consensus) governing how that state may shift.
Even better, no one entity controls this decentralized state machine; it is maintained cooperatively by everyone in the network.
What about a backup server? Instead of controlling the backend of WordPress, Web 3.0 allows you to develop smart contracts that specify the logic of your apps and deploy them into the decentralized state machine. This implies that everyone who wants to create a blockchain application must deploy their code on this common state machine. The front end, mostly, remains the same. Let us try to dive deeper into the components of a decentralized app:
1) Blockchain Protocol
The Ethereum blockchain is often referred to as a “global computer.” This is due to the fact that it is a globally accessible, deterministic state machine that is maintained by a peer-to-peer network of nodes. The rules of consensus that the peers in the network obey control state changes on this state machine.
In other words, it’s meant to be a state machine that everyone on the planet can access and write to. As a consequence, this computer is owned jointly by everyone in the network rather than by any one corporation.
Another thing to keep in mind is that data can only be written to the Ethereum blockchain – it can never be updated.
2) Smart contracts
A smart contract is software that runs on the Ethereum blockchain and specifies the reasoning behind the network’s state changes. Smart contracts are created in high-level programming languages like Solidity or Vyper.
Because smart contract code is kept on the Ethereum blockchain, everyone on the network may view the application logic of all smart contracts.
3) Ethereum Virtual Machine (EVM)
The Ethereum Virtual Machine follows, which executes the logic expressed in smart contracts and handles state changes that occur on this globally accessible state machine.
The EVM does not comprehend high-level languages used to build smart contracts, such as Solidity and Vyper. Instead, the high-level language must be compiled into bytecode, which the EVM may then execute.
4) Front-end
Finally, there is the front end. It defines the UI logic, as previously stated, but it also interacts with the application logic described in smart contracts.
Web3 is the Future
Web3’s future seems to be bright. There are several intriguing initiatives and innovations ongoing that will make this technology more user-friendly and accessible to everyone. We should expect to see a lot more innovation in this area over the next five years, revolutionizing how we use the internet. With further advancements in blockchain technology, we may soon see Web3 utilized for everything from online commerce to voting and governance. Polygon hosts some of the biggest Web3 platforms and developers in the industry, from decentralized finance (DeFi) protocols such as lending platform Aave to luxury brands company Dolce & Gabbana, and even NFT marketplaces including OpenSea and Mark Cuban’s Lazy.com.
The GBA Banking and Finance working group has undertaken two critical tasks for the GBA.
Firstly, following the successful publication and reception of the GBA Blockchain Maturity Model (BMM), the Banking and Finance Group, in concert with other working groups, will be developing the BMM Supplement, which will outline the distinct requirements against which blockchain solutions within the financial services can be additionally assessed. Topics will include:
Capital Markets Debt and Equity – Primary and Secondary Markets (Exchanges and OTC)
Central Banking, Fractional Reserve Accounting, Commercial Lending, National Banks
Pension Funds, Insurance Companies, and Foundations
Retail Banking (Accounts, Payments, Personal Lending)
Structured Products
Secondly, the group is developing a GBA Consulting Handbook describing the various sectors of the banking, financial, and capital markets industry, with the goal of providing training for those sectors and outlining the potential for blockchain solutions.
If you are interested in contributing or want to listen in for educational purposes, please log into the GBA website and join the Banking and Working Group. All of the call details are listed for the calls every Wednesday.
If you are a start-up or enterprise that’s interested in building a blockchain network, Hyperledger Fabric can be a great option. Fabric is a modular platform that allows you to build your own blockchain network, and it’s been used by companies like IBM and Airbus. In this blog post, we’ll walk you through how to set up your own Fabric network. We’ll also show you how to use Fabric for prototyping and development. So if you’re ready to start building your own blockchain network, keep reading!
Blockchain is gaining immense popularity and it is not just cryptos and cryptocurrency that forms the core of blockchain but it goes far beyond that. Major industries, including the finance, logistics and transport, supply chain, insurance, healthcare and others are taking steps to adopt the innovative blockchain solutions to bring in greater efficiency and transparency. The innumerable benefits of the blockchain technology have only made enterprises realize the huge potential the technology can have for their business and hence they are fast adopting it.
Before we walk you through the steps with the help of which you can build your own blockchain application with Hyperledger fabric, it is essential to understand some major components, know the basics of server management and also know more about the framework.
What is Hyperledger Fabric?
Hyperledger Fabric is an open-source blockchain framework for running the private, permissioned, blockchain network and runs on Unix-based operating systems. It was initially contributed by IBM and Digital Asset Holdings, LLC. Fabric serves as a base for building applications or solutions with a modular architecture. This private blockchain network is hosted by the Linux Foundation and members can join this blockchain network only on invitation and it cannot be joined by everyone. This permissioned blockchain network implies that the identity and role of each participant is known to other members of the network. Also, every transaction carried out in the blockchain network is verified, validated, authenticated and also monitored. It is possible to operate the Fabric Networks on-premises or also choose the blockchain as a maintenance platform to sustain the registry infrastructure.
Networks that are created between several parties are capable of exchanging sensitive data with each other. Hyperledger Fabric blockchain-related tasks are unusable if the entire blockchain is not integrated with multiple parties. However, it is challenging to identify, due to its flexibility and strength.
Features of Hyperledger Fabric
The Fabric blockchain framework was created with the purpose of creating trust between one or more actors, organizations, or corporate entities. Well-known traits constituting the crucial element of the Fabric network are as follows:
Privacy:
Each and every system on the network needs to be identified by the Fabric.Given that it is a permissioned blockchain network, prospective participants of a Hyperledger –fabric empowered network are required to sign up and group themselves through a Membership Service Provider (MSP). It is a permissioned network with permissioned membership. The most significant feature that the Hyperledger fabric possesses is the aspect of ensuring privacy for the data stored. It is this relevant feature that makes it such an appealing option for building blockchain applications for many businesses across industries. Moreover, the fabric requires no permission for any component of the blockchain and the requirement for the permission is the decision of the designer of the blockchain network.
Membership services
One of the key features of Hyperledger Fabric is its ability to enable membership services for organizations. This means that companies can join the network as either a full node or light client, depending on their needs and requirements. Membership services are also used to enforce access control to the network and its resources.
Channels:
Hyperledger open-source framework allows users the ability to divide the framework into different “channels”, thereby encouraging network members to establish a separate set of transactions that are not accessible and seen by the larger networks. Channels allow participants in a network to securely transact with each other without having to broadcast every transaction to all members of the network. This is useful in bringing down the amount of data which is required to be made public and to be seen by other participants and improves performance. Hence, it allows users and transaction holders to hide sensitive data from the larger network participants with no requirement for access or need for involvement.
Scalability:
Hyperledger fabric is highly known for the appealing feature of maintaining a scalable network for which the business enterprises often choose to use this network for building blockchain apps. This significant trait of the open-source framework helps businesses to rapidly scale the number of nodes taking part in the network as with any kind of implementation. Meanwhile, the system holds the capability to process larger chunks of data even with fewer dedicated resources, thereby allowing users to have the best of the benefits of the fabric. It is possible to build a blockchain network with only a limited set of nodes and it can be scalable on requirement.
Modularity:
Hyperledger fabric architecture lets users add individual elements and implement them at different times. It is observed that several of the components are discretionary and can be completely done away with or can be added later on without actually impacting the functionality.
Companies can use this function to set what the need is and what they don t need. A few important things for consideration for modular architecture or plug-and-play include how membership services are crucial for different identities, how consensus mechanism is developed, appropriate ledger storage, specialized access APIs, and integrating connecting code.
How Does Hyperledger Fabric Work?
The Hyperledger Fabric project is an open source framework designed to improve and develop cross-industry blockchain applications. Fabric is a modular platform allowing for the development of blockchain applications and solutions with a range of governance models and smart contract templates. The Hyperledger Fabric repository is hosted on GitHub.
One of the advantages of Hyperledger Fabric is its ability to support multiple blockchain networks, or in a single deployment. This allows different parts of an organization, or different organizations, to have their own private blockchains that can interoperate with each other. In addition, Hyperledger Fabric supports both permissioned and permissionless deployments, giving organizations the flexibility to choose the appropriate level of security for their needs.
Hyperledger Fabric has been used in a number of production deployments, including we.trade- an e-commerce platform built by nine European banks.The need for data integrity has never been greater than it is now. With the increasing number of regulations mandating that all participants be kept up-to date on certain fields, fabric’s ability to maintain this information becomes more important than ever before so these rules can effectively chase off any possible participant who may try and compete against them by not following suit with others within an industry or sector about which there was no previous agreement beforehand.
Carrying out effective private transactions or contracts with conventional blockchain networks can be a problem for major organizations. For this reason, Hyperledger Fabric was created as a modular, scalable, and safe foundation for installing industrial blockchain solutions.
An open-source, blockchain-branded engine is Hyperledger Fabric. Its key features are invaluable for a business to use blockchain for core applications. The use of a verifiable ID is a primary necessity for carrying out a private industrial network.
What Makes Hyperledger Fabric Apt For Enterprises?
Open-Source
Open-source blockchain framework Hyperledger Fabric is hosted on a Linux-based platform. In addition, there are active developers involved. It is developed to be readily available to the public. Anyone can access and change the team’s source code. It is open for complete community and developer access. Every part of the conceptual code is open to the public. Anyone may improve upon the program, and thanks a lot are offered for related participation.
Private & Confidential
A copy of the full ledger is received by every node in the public blockchain network. So, confidentiality becomes more prevalent as there’s a lot more of everyone’s business on the blockchain network. In addition, the identities and role of the participating members are unverified or unknown.
Given that it is public, anyone can join blockchain. In case of Hyperledger Fabric, the identity of all members is verified, along with the ledger may only be accessed by verified members. This attribute is most effective in sectors in which confidential data is called for, such as banking and insurance.
Provides option to Control Access
Hyperledger Fabric has a digital-to-physical blockchain network. It has specific access controls for specific users. It has its own order-message authorization process and provides additional administration security.
This is helpful if a portion of the members would like to limit accessibility and control the information. It helps only a limited number of participants involved in the transaction to see the data and information. Thus the feature of controlled access is helpful in situations where two competitors are on the same network.
The framework setup gathers and stores information. Here, one competitor may guard its data from being revealed to another competitor.
Chaincode Functionality
The Chaincode function allows you to implement smart contracts with your system’s business rules in a container technology-based hosting model. It uses Pluggable Components, making it easy to adapt to the complexities inherent throughout the economy. This is useful for certain types of transactions, such as changing ownership of an asset.
Real-World Value and Performance
The Hyperledger Fabric distributed ledger is a private network, so there is no need for individuals on the network to verify the transactions that take place there. This aids in speeding up the transactions and also improves overall performance.
How Can You Create Applications Using Hyperledger Fabric?
Hyperledger fabric is a blockchain framework implementation, designed to provide the foundation for developing applications or solutions with an architecture that’s modular in nature. There are several ways you can create your own application using this powerful network technology – here are just a few ways!
One approach is to use the command-line interface (CLI) to generate modules, chains, and organizations. Another option is to use a graphical user interface (GUI) such as Hyperledger Composer. Composer provides an easy way to create smart contracts and blockchain networks without having to use the CLI.
A third option is to use one of the pre-built applications that are available on the Hyperledger Fabric GitHub repository. These applications include sample code, scripts, and dockerfiles that make it easy to get started with Hyperledger Fabric.
Your imaginative choices for creating applications with the Hyperledger Fabric can take place through application of a template, outsourcing, or by creating it in-house. Here’s a brief overview of these three ways. .
Templates
The Hyperledger template is available for use with the Hyperledger blockchain, smart contracts, and apps. A host of professional programmers created it to make the use of blockchain easier and more widely available, so that enterprises would only need small financial and manpower resources to begin.
It may be possible to compare Hyperledger templates with website templates, or their services, in order to understand them better. WordPress enables users to develop any type of website in no more than 30 minutes without any programming experience, web design, or layout skills.
It is not simple to create applications for Hyperledger based on templates. In 5 to 10 years, the templates folder will contain solutions for everything ranging from simple electronic payment transactions to use as a system for voting.
Outsourcing
Operations conducted with the assistance of third-party contractors are referred to as outsourcing. In case of building blockchain applications, it can refer to the process of creating applications, deployments, and tests. You are most likely to find very qualified and highly experienced computer programmers who will be happy to handle the process with precision, and as a result, you need a good deal of money to hire them and won’t wish to engage in your own development.
There are a lot of companies who are developing Hyperledger blockchain applications, but very few competent people in them. Because blockchain is a new innovation, only limited developers worldwide are highly skilled at it.
What to look for when looking for a developer company:
After you’ve completed a list of projects, search for a team that has experience in the type of work that you need to do. Sometimes software products are created and tested for quality, functionality, and utility. Get in touch with the development companies of interest to you and the companies you have already worked with.
If you’re not sure how to structure the working schedule, communication, data exchange, or payment terms, you should either review the many local developers or hire a developer who already works in the specified field.
Hiring your own group of technical developers will allow you to create your own blockchain applications. This means you can fully control the development of this project; however, you’ll need to find coding resources and a programmer workspace.
To save time as well as money, it is sometimes better to hire experts in building blockchain applications who are readily available for your remote job. Whenever you choose this option, however, it is also important to set up the development process well so that one expert can oversee multiple tasks.
Zeeve for building blockchain applications using Hyperledger Fabric
Enterprises and startups can use Zeeve to build, deploy and manage nodes. Zeeve is a Blockchain as Service (BaaS) platform that helps enterprises and startups build, deploy & manage reliable decentralized apps. It has been designed to be cloud agnostic so it can easily interoperate with other networks running on different technologies such as Etheruem and so on. This way you don’t have restrictions when developing your DApps. Furthermore Zeeves offers powerful APIs for creating all sorts of use cases across industries – from banking & financial services ground up through retail stores!–allowing anyone interested in exploring what they’re capable of offering!
The platform offers a wide range of features that make it easy for businesses to get started with blockchain technology. With Zeeve, enterprises can take advantage of the security, transparency and efficiency offered by blockchain technology without having to worry about managing the infrastructure themselves. If you’re looking for an easy way to get started with blockchain, be sure to check out Zeeve. Sign up now!
Hyperledger, Corda, and Ethereum are all blockchain platforms which are used for the creation and tracking of cryptocurrencies. Let’s take a moment to contrast Hyperledger, Corda, and Ethereum to see how they work. While different frameworks showcase the advantages of technology based on distributed ledgers, they have radically different concepts of application and vision. In this article, we will attempt to demystify the pros and cons of the uses for each of the three applications. Hyperledger, Corda vs Ethereum is a comparison that details the expanse and capacity of distributed ledger technologies.
The case studies of both Fabric and Corda are developed for practical purposes, whereas Corda’s cases are used in the financial sector. For this reason, Corda develops its solutions to retirement age, whereas Fabric chooses targets many industries. Ethereum presents itself as completely independent of any certain field of application. However, in contrast to Fabric, it is not modularity that differentiates it but the provision of a generic platform for all types of transactions and applications.
Participation of peers
With traditional centralized data storage, only the owner controls the database, such as a ledger. As a consequence, the owner publishes which data is entered and which can post other entries. DLT renders this transfer of data radically different, with simultaneous “peers” holding a copy of the data and naturally permitted to make contributions. Distributed data storage involves nodes or peers that participate in it. The difficulty arises with regard to ensuring all nodes agree to a common fact, such as a ledger’s validity, so that changes made by one node can be transferred to all peer nodes in the network. One of the chief goals of consensus is to find a common reality for all nodes in the network.
Consent-based, decentralized consensus has two modes. One is permissionless, and the other is permissioned. If participation is permissionless, anyone is allowed to participate in the network. This is a feature unique to public blockchains like Ethereum. Alternatively, if permissioned protocols are present then the participants are chosen well beforehand and hence there is restricted access to the network. It is valid for Fabric and Corda ecosystem participation, permissioned or permissionless. The mediating medium, whether top-down participation or open, has a profound impact on the way for consensus is reached.
Use cases
The three distributed ledger technologies differ regarding the way they use the use case and vision. Corda derives the majority of its use cases from the financial services industry, whereas Hyperledger Fabric seeks to provide modular, extensible architecture in any industry. Ethereum, meanwhile, regards itself as distant from any particular application.
Consensus
Ethereum
In Ethereum, reaching a consensus for all participants with regard to the order of all transactions taking place is very important. All participants are required to be a part of it, regardless of whether they are a part of that transaction or not. Failure to establish a definitive transaction order could actually lead to double-spend and there can occur two parallel transactions, whereby the same coins are being transferred to different recipients.
A consensus-mechanism can protect the ledger against any kind of fraudulent activities and becomes all the more important to be employed given that there are mutually distrusting and anonymous parties involved. In your current version of ethereum, this is a mechanism established by mining based on the proof-of-work (PoW) scheme. Thus, you must agree on one common ledger and all employees have access to all entries previously recorded. As a result, PoW has a negative impact on the system’s capacity to process transactions. Even anonymous, the records that are stored on the ledger are still accessible to all participants, so applications that need a higher degree of privacy are hindered.
Despite Fabric and Corda’s reliance on Proof of Work, a top-down consensus process is implemented in both cases to promote flexible information processing. A user can participate only in records of their choosing and enhance their security protections by interacting in a permission-eligible domain.
Fabric
The entire workflow is driven by a fabric’s knowledge of consensus. This includes proposing a deposit to the network, signing it, and processing the transaction. To some extent, Ethereum has understood and prepared themselves for any given scenario, but the roles, tasks, and requirements in developing the consensus process are similar.
Within Fabric, nodes with different roles are marked. Coders are categorized as clients, peer, and orderer, whereas end-users are peer and order. Peers secure the ledger and receive alert messages from depositor-orderers about committing new transactions to the ledger. As an endorsement peer is a type they specifically have, their job entails approving of transactions by checking whether or not they fulfill the necessary and sufficient conditions (e.g. submission of required signatures). A channel of communication remains open for clients and peers by way of which messages pertaining to the transactions can be broadcasted. With respect to consensus in particular, the channel maintains consistency for all connected peers, broadcasting the same messages in the same logical order.
At this moment, there are deficiencies in the delivery of orders when many distrusted hierarchical orderers are hired. As a result, a consensus algorithm needs to be used to reach consensus despite difficulties, such as inconsistent order of messages, hence making redundant the circulation of the block chain tolerant. The algorithm employed by Fabric is pluggable, rendering it possible to have a variety of algorithms for various applications. For example, to insulate against certain kinds of abuse, algorithms based on the Byzantine fault-tolerant (BFT) paradigm may be used.
In this way, communication channels are limited to parties involved, which results in transactions being resolved without a need for consensus at address level, where transactions involving unrelated channels are recorded.
A fine-grained system of management and restricted access to transactions allows better performance, scalability and privacy.
Corda
Like Corda, involving the participants alone helps in reaching the consensus at transaction level. Subject to consensus is transaction validity and transaction uniqueness. Running the smart contract code that pertains to the transaction ensures the validity of a particular transaction and also by verifying all the needed signatures and making sure that there are no disputes between the parties regarding it.
Smart contracts
Smart contract code is just a computer program written in a specific programming language. It acts both as a software agent and delegate of the person who employed it with the intention that it fulfills certain obligations, exercises rights and takes control of assets within a distributed ledger in an automated way. As such, it takes on tasks and responsibilities in the distributed ledger world.
DLTs feature intelligent contracts in the sense of payment code that can be found in source codes in Go or Java for Fabric, in Solidity for Ethereum, and in Java or Kotlin for Corda. In Fabric, the term chaincode is used to refer to smart contracts.
In Corda, smart contracts consist of not only computer code but also incorporate legal prose. Therefore, smart contracts are legal prose that is written in such a way that they can be said and implemented within smart contract code. The reason is to give the code more legitimacy given that it is based in the associated legal prose. Both Fabric and Ethereum lack the ability to solve this problem.
Built-in currency
Created as part of the Ethereum system, ETH is a built-in cryptocurrency used for paying participant contributions to reach consensus around the total amount of new blocks to mine as well as to paying transaction fees. DApps can be built for Ethereum that let monetary transactions. Additionally, a digital token can be issued for particular use cases by creating a smart contract that complies with the predefined standard.
Both Fabric and Corda do not require a mining program to establish consensus. With Fabric, however, you can create a custom cryptocurrency or a digital asset through chaincode. With Corda, it’s not planned to create custom digital currencies or digital assets.
Summary: customized vs. generic platform
To summarize, analyzed DLTs span a spectrum. On one hand, there is Fabric and Ethereum. They are both highly flexible, yet contrasted. Ethereum’s powerful smart contract engine renders it a flexible platform for virtually any application. Ethereum, which offers an open mode of operation, does not allow the network to recognize scalability issues. Fabric helps solve scalability and security issues when it uses permissioned mode of operation specifically by means of its BFT algorithm and fine grained access control. Additionally, the modular design permits Fabric to be tailored to a wide variety of uses. An analog to a scalable toolkit can be drawn.
Corda has been purposefully built as a DLT platform for the financial services industry. Notably, it rests on the smart contract framework by supplementing it with customary legal documents.
Corda evidently focuses solely on financial services transactions, simplifying its architectural design in comparison to other fabrics. Because of this, it could offer a more out-of-the-box experience. However, it might also be possible that Fabric, because of its modularity, can operate like Corda’s feature set. Efforts are made by the community to integrate Corda into the Hyperledger project. Corda strives to be incorporated into the Hyperledger project.
Final thoughts
Hyperledger vs. Corda vs. Ethereum is a comparison with growth potential that is likely to proceed alongside the advancement of blockchain technology as well as new applications for emerging technologies. Zeeve is the leading Blockchain as a Service platform helping enterprises and Blockchain startups build, deploy and manage reliable decentralized apps and Blockchain networks. Zeeve is a low code automation platform that is cloud agnostic and supports multiple Blockchain protocols with advance analytics and monitoring of nodes and networks.It’s worth keeping an eye on the evolution of the blockchain industry as more and more new applications emerge. However, the initial digital ledger technologies are very different from one another. On their vision and application, they are still very different. However, it’s significant to remember that the three cryptograms differ greatly, on the subject of technique as well as use.
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