How does Hyperledger Fabric implement private data sharing among related parties? - hyperledger

How does Hyperledger Fabric share the private data only among intended parties without revealing the data to the other network participants?
Is it similar to R3's Corda?

Current version of fabric v0.6 does not provide such possibility, i.e. every peer can see the same as the other peers. But there is intention to implement this feature in 1.0 http://hyperledger-fabric.readthedocs.io/en/latest/abstract_v1/

As of Hyperledger Fabric 1.0.0, full support for channels is provided. A channel can be thought of as an overlay network in a larger blockchain network, including a restricted set of peers belonging to selected organizations and an orderer. All transactions are conducted in the context of a channel, and all transaction information is shared ONLY with those peers that participate in the channel.
More information can be found in the documentation.

In Fabric version 1.2, support for 'private data collections' was added, in addition to the concept of 'channels'. Private data collections allow for organizations on a (blockchain) channel to share private data peer-to-peer, with a hash of the private data going on the blockchain. See more details in the private data documentation.
For a comparison with Corda, see this answer.

Related

Re-using peers/nodes in Hyperledger Fabric for 2 different DLT networks

I was exploring the channels feature of Hyperledger Fabric. I understand that separate channels is only for same Blockchain (DLT) network. I am just exploring the possibility in Docker Containers, for building 2 PoCs.
If a node/peer is configured for an organisation in one DLT (multi-org) network, can it be re-used for a different organisation in another DLT (multi-org) network?
Eg. Lets say a peer is configured for a Supplier in one network (1st Use case), can it be re-used as a peer for Logistics Company in another network (2nd use case)?
Please note that both networks should be up and running at the same-time.
I haven't tried it practically but theoretically, it is possible. Why?
The criteria of a peer joining a channel to another network is dependent upon whether its root CA certificates are in that channel's configuration block or not, along with its MSP-ID.
And network itself is nothing but the information about the organization, that decided whether a peer can join a channel or not. If that information is in the configuration block, and it matches the peer, it is possible.
To my understanding, The network you keep referring to is actually a consortium of some organizations.
First things first, A peer is always associated with a particular organization and the crypto files and organization certificates are bootstrapped to the docker container of that peer.
However, The policies governing the network can be varied across the consortiums and/or channels in each consortium. The organization may have read/write access in one consortium and in others it may have separate permissions.
The peer cannot be decoupled from an organization but the organization itself can be decoupled from the consortium.

Interledger Connector for Hyperledger?

Understand that Interledger is an open protocol suite for sending payments across different ledgers -- supports and integrates with Bitcoin, Ethereum (IS 20022)
Does Interledger supports hyperledger and/or vice versa? i.e., any integration possibilities between Interledger and Hyperledger? i.e., hyperledger <-> interledger <-> ethereum and/or bitcoin?
Understand that Hyperledger does not have cryptocurrency but I might have digital assets within my hyperledger network that can be exchanged with ether or bitcoin.
Thus I wish to know if there are integration possibilities between Hyperledger and Interledger?
Interledger is a protocol, not a system so I would rephrase your question as:
I wish to know if there are integration possibilities between Hyperledger and other ledgers using Interledger?
The answer is yes but this depends also on the use case. What do you mean by "integration"?
Interledger defines some standards for distributed transaction execution according to a two-phase commit strategy. It is specifically well-suited to transfers of digital assets across multiple ledgers because it's resiliency is depends on the economic incentives of the intermediaries to claim the assets that have been transferred to them (and in so doing providing the key to the next intermediary to do the same).
The most important standard is the use of a SHA-256 hash in the prepare request and the pre-image of that hash as the commit trigger of the two phase asset transfer on each ledger. We call the hash a condition and the pre-image the fulfillment.
If you want to perform a transaction that transfers digital assets from a sender on one ledger to a receiver on another ledger then you will first establish a condition that can only be fulfilled by the receiver (i.e. only the receiver knows the pre-image).
This way you can involve an untrusted intermediary that will accept a transfer on the sender's ledger and make a corresponding transfer to the receiver on their ledger. Both transfers are prepared using the condition and when the receiver releases the fulfillment to their ledger the assets are transferred to them.
The intermediary will then have possession of the fulfillment (they observed the assets they transferred to the receiver being committed) and will use the same fulfillment to claim the assets transferred to them by the sender.
Any Hyperledger ledger that can be used to underwrite asset ownership and support this two-phase commit strategy can be used in an Interledger payment.
There are examples of writing smart contracts that do just this in Ethereum so I assume the same could be achieved using Fabric, Sawtooth or any other Hyperledger ledger.
I am not aware of any existing implementations of such a plugin that would allow the reference ILP connector to be run as an intermediary between a Hyperledger ledger and other ILP-compatible ledgers but I'd certainly welcome any efforts to build one and would be happy to assist.
Interledger looks to be a service that wants you to route financial transactions through them. There is some simple sample code for compatible wallets and transactions in JavaScript. Presumably you can do this in any language.
Which leads me to point out that Hyperledger supports smart contracts and applications written in Go, Java, Python, and JavaScript (through the Hyperledger Composer) and so there is a pretty good chance that you can implement an ISO 20022 / Interledger compatible data model and protocol.
HOWEVER
You need to follow best practices and smart contracts should never directly update external services as their is no way of rolling back external service changes if the smart contract sends successful external transactions but then fails for other reasons.
So, you need to design multi-stage transactions in your smart contracts and related applications. Applications will have to coordinate with smart contracts and post on their behalf to other services, recording results in the ledger and triggering next stage updates and transactions.
This allows the blockchain ledger to reflect the reality of external states from Interledger or whatever ISO 20022 compatible service you use.
This all presumes that the other financial institution refuses direct participation with the smart contract and hyperledger blockchain, which is always going to be more efficient, reliable, and secure.
It sounds like you want something like Hyperledger Quilt, which interoperates between different blockchain technologies.

Is local system data use discouraged in hyperledger chaincode?

I wish to implement a contract that is subject to market data which each user has access to in their own LAN, but which they are not licensed to share over the internet. I understand that chaincode is supposed to be deterministic. Does this mean that it is not designed to tolerate referencing out-of-band data (data not available in the log or state) - so it would be hazardous in this protocol to reference this market data from chaincode?
Hyperledger Fabric (version 1.0) gives you the chance to create your own distributed networks, via channels. When you create a channel, you decide which are the participants of it, and you isolate them from the rest of the network. Then, you deploy, instantiate and invoke your chaincode, via that channel. So that, you don't share that chaincode and the transactions with all the people/network.
When you execute a transaction, you do it using some parameters. You would define it in your chaincode. You decide whether your chaincode could get parameters or not.
I have found many different questions in your question. Could you specify more wich is your issue?!

Does Hyperledger Fabric supports encrypted transaction?

This video (part of IBM course on Hyperledger Fabric) describes that it is possible to encrypt chaincode at deployment so that only a subset of members is able to decrypt it and run it. However, Fabric documentation (v0.6 and v1.0) does not provide any detail on that. Is it a feature not yet implemented that the community wish to build in the future?
It is not very clear to me how this could work. Any peer receiving a transaction from the Ordering Service that it can't decrypt would be unable to run it and update its world state, so what else can it do but just skip it ? It also can't even mark the transaction as valid or invalid.
Am I missing something?
In Fabric v1.0 there is a concept of channels to privately share data with a subset of network members. Only members of the channel will store and have access to the data.
If you would like to encrypt the data regardless, the application may encrypt the data prior to submitting the data to the blockchain.
Yes, it is possible to encrypt data on-chain such that chaincode is still able to see the data and apply logic on it (as opposed to an off-chain encryption where the data being garbage is not usable on chain).
The idea is to pass the encryption key as part of a transient input parameter (which is not transmitted to ordering service and other channel node). So only the endorsers and any node that get to know the key can decrypt the data.
In v1.1 to be released on Q1 2018, Fabric will support an encryption layer API to the access state (see FAB 830).
There are 2 drawbacks of having encrypted data on chain:
Key maintenance and sharing is overhead
Risk of keys leakage + encryption breaking in the future
For privacy, rather than encryption, it might be better to chose a data segregation approach. That is what FAB 1151, also part of v1.1 (Experimental!) proposes:
Each private data belongs to a collection defining the organizations which can access it
The hash of the private state is included in the public state
Endorser keep the private state calculated during the transaction simulation into a transient storage area and apply it at commit phase
Other allowed nodes can request the private state via gossip

Where do smart contracts reside in blockchain (Ethereum or Hyperledger)

So, let us consider a typical trade finance process flow. Exporter deploys a contract that has conditions of the shipment and a hash is generated once the deployment is finished.
Questions:
1) Where is the contract stored?
2) How other participants such as customs and importer can access this contract?
3) Can we activate participant level access to the contract on the blockchain?
There are several aspects to Ethereum and Hyperledger which make them quite different. Let me give a somewhat simplified answer to not get into too much details and a too long answer.
First of all, Ethereum is primarily a public blockchain that works in a certain intended way. Similarly, the Bitcoin blockchain works in a certain intended way. Hyperledger is not like that, rather it's an umbrella for distributed ledger technologies (in my terminology not the same as blockchain) which all aim to provide a very flexible architecture so that one can build all kinds of ledger-backed systems with pretty much any properties needed. One could compare this to an imaginary Bitcoin umbrella that provides technology to produce own altcoins with pluggable parts for e.g. consensus, blockchain storage, node composition etc. In short, all these aim to solve different problems and one should not think one will fit all.
Coming back to your questions.
1) Where is the contract stored?
Ethereum has contracts (called smart contracts) on the chain, i.e. code is compiled to byte code and the resulting bytes are sent within a transaction to be persisted onto the Ethereum blockchain. This is done once when you deploy the smart contract. After this one can interact with the smart contract with other transactions.
Hyperledger is in theory not defining this, it could be on a ledger or it might not. Take Fabric for instance, it deploys the code into a sandboxed Docker container which then can be interacted with using transactions.
2) How other participants such as customs and importer can access this contract?
Short answer is that they are given access via credentials.
This is in both Ethereum and Hyperledger open for you to decide yourself. We now assume the code in both cases has been deployed as code on the blockchain for Ethereum and as a Docker container in Fabric.
In Ethereum the code is, a bit simplified, publicly accessible/visible which means you need to employ some kind of check to only allow those who should be able to interact with the smart contract to do so. One way is to check the sender (of the transaction) and only allow certain ones. It's similar to traditional systems where one usually needs to authenticate/authorize to be allowed in and see/alter data.
In Hyperledger it would most likely be modelled in a similar manner and e.g. in Fabric there is also the Certificate Authority that hands out certificates that allow access to different parts of the system. E.g. transport, endorsement or transactions.
3) Can we activate participant level access to the contract on the blockchain?
Yes, so each participant in both systems has credentials and the designer of the smart contract can use this to control access.
Also, in Fabric there are channels that partition the ledger which is used for access control.
HTH.
1) The contract resides on the ledger. Whenever a transaction is invoked, the corresponding method in the contract gets executed on all the validating peers.
2) Other participants can access this contract using their pre-defined user credentials, which they can use to enroll themselves and invoke transactions on the contract.
3) Yes, we can activate participant level access to the contract by defining attributes for every user and allowing only those users who possess certain attributes to access specific parts of the contract.

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