Data Exchange Privacy and Security with Hyperledger Fabric Blockchain

Posted by MuBlockchain on January 7th, 2021

Enterprises often require a defined degree of data and transaction protection, privacy, enforcement, and efficiency to be guaranteed. There are very complicated and time-consuming methods. With data incompatibility or lack of confidence, problems often arise. In such cases, how can Hyperledger blockchain development help to ensure privacy and confidentiality of data and transaction exchange across a business network?


A distributed, decentralized public ledger is now known by blockchain technology. It can be represented as a constantly increasing list of transactions stored on devices on the network called nodes to image it. The nodes are linked by cryptographic protocols and keep transactions confidential.

All the information on this network is available to users and they are each responsible for their actions. Data is permanent and is not governed by a single central authority. But what, where a business wants to ensure the privacy and confidentiality of transactions and data exchange with others, use private blockchain like Hyperledger Fabric.

Permissioned Blockchain Development

The feature that distinguishes private blockchains is that network participants can restrict access or permission. You have to be allowed in by network managers. The limitation of network access guarantees confidential transactions. It would only be recognized by the individuals involved in a transaction. It is enough to restrict reading permissions and provide a high degree of data protection to achieve a higher level of privacy.

Private Blockchain Platforms for Privacy and Confidentiality

Permissioned or private blockchains are either open source, consortium, or built privately. A private blockchain comes in many options for the privacy of transactions and data exchange use cases, but the most common ones are the Hyperledger Fabric of the Linux Foundation and the Corda of R3.

Introducing Hyperledger Fabric Blockchain for Privacy Protection

The scalability of Hyperledger Fabric relies on several variables. Design of software infrastructure and performance of complexity effects. Compared to public blockchains, the Hyperledger Foundation claims that its private blockchain is more scalable and enables more transactions every second. A 2019 report also reports that 20,000 transactions per second have been accomplished.

One big tradeoff with higher transaction processing rates is that there is further centralization of private blockchains. Hyperledger Fabric uses Raft consensus instead of public proof-of-work consensus, which is used by Bitcoin and Ethereum.

You need an odd number of nodes to achieve consensus in Hyperledger Fabric and there must be a clear majority of those operating to validate transactions. For instance, if a network includes seven nodes, four will need to function to verify new transactions. Having only a small number of nodes, however, also comes with risk.

Permitting network stars gives them a great deal of control, so make sure they’re someone you trust. More nodes will be lost by Raft and it will continue to operate. It is less secure because it does not defend against ‘bad actors,’ that is, these ‘bad nodes,’ so believing that such bad users will not obtain access is rather necessary for corporate blockchains. However, rafting is much easier, much more scalable.

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