6 Key Information to Understand Hyperledger Fabric Technology: How It Works Up to Version 2.0

Jakarta, Pintu News – Hyperledger Fabric is a modular blockchain framework designed to meet enterprise needs. Developed by IBM and Digital Asset, and hosted by the Linux Foundation, it provides a private blockchain solution withpermissioned access, allowing data and transactions to be managed securely and segmented according to business needs.

Since its release in July 2017, Hyperledger Fabric has become a flagship project in the Hyperledger ecosystem. Here’s a bullet point format explanation of the definition, how it works, use cases, risks, and the latest version update.

1. What is Hyperledger Fabric?

• Definition: Distributed Ledger Technology (DLT) platform is modular, open-source, and supports plug-and-play components.
• Difference with public blockchains: Fabric is permissioned, so only authorized parties can access the network.
• Key benefits:
  1. Maintain confidentiality of sensitive information.
  2. Speed up transactions due to fewer nodes.
  3. Meet privacy regulations in healthcare, finance, and other industries.

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2. How Hyperledger Fabric Works

• Transaction stage:
  1. Smart Contract (Chaincode): Distributed logic that processes agreements.
  2. Orderer: Determines the order of transactions.
  3. Validation & Commitment: Validate transactions and record to ledger.
• Network participant role:

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This modular architecture improves scalability, network performance, and security, as only authorized parties can access critical data.

3. Usage Example

• A real case in point: A chocolate manufacturer wants to sell products to the US market at a special price without disclosing it to the Chinese market.
• Problems with public blockchains: Price information is potentially known to all parties in the supply chain.
• Fabric Solution: Data partitioning ensures that only relevant parties can access pricing information.

4. Risk and Criticism

• High complexity: More complicated than public blockchains, but not necessarily more secure.
• Scalability & performance: Research shows that there is a potential degradation of network consistency in case of block propagation delays.
• Efficiency: Some experts think non-blockchain technology can offer equivalent security at a lower cost.

5. Hyperledger Fabric Competitors

• Fellow Hyperledger projects: Iroha, Indy, Sawtooth.
• Projects outside Hyperledger: R3 Corda (permissioned DLT).
• Chainstack Findings (2020): Fabric development was lagging behind Corda, despite having more active developers.

6. Hyperledger Fabric 2.0 update

Released in January 2020 with new features:

1. Decentralized governance of smart contracts: All parties must agree before the contract is executed.
2. Faster transactions: Optimized order processing and validation.
3. More efficient data sharing: Facilitate the exchange of information between participants.

While not addressing all criticisms, this update shows significant progress and a commitment to long-term development.

Conclusion

Hyperledger Fabric occupies a unique position in the blockchain world as it offers a private, modular, and permissioned solution suitable for enterprises. The technology supports secure transactions with verified participants, while maintaining data privacy according to business needs. However, challenges such as complexity and efficiency remain the focus of future improvements.

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Reference:

• The Investopedia Team. Hyperledger Fabric: Definition, Example, Risks and 2.0 Version. Accessed August 8, 2025.