Flow Of Transactions In A Permissioned Blockchain Network | Summary and Q&A

TL;DR

Hyperledger is a permissioned blockchain that follows an execute-order-validate model for transaction flow, differing from permissionless blockchains like Bitcoin and Ethereum.

Key Insights

• 🤗 Hyperledger is an open-source project with contributions from various organizations, including IBM, Accenture, and Goldman Sachs.
• 💐 Transaction flow in Hyperledger follows an execute-order-validate model, ensuring transaction endorsement, block creation, and validation.
• 💦 Hyperledger's permissioned blockchain does not rely on proof of work consensus mechanism like Bitcoin and Ethereum.
• ❓ The consensus in Hyperledger is achieved through endorsement policies, where transactions require the approval of designated peers.
• ✋ Hyperledger offers higher scalability, with a capacity of around 400 transactions per second, compared to the limited scalability of permissionless blockchains.
• 💦 Hyperledger eliminates the need for a cryptocurrency reward system, as participants are already part of the organization and receive salaries for their work.
• 😒 Understanding the transaction flow in Hyperledger is crucial before delving into its applications and use cases.

Transcript

in this section we are going to look at the first permissioned blockchain called as hyperledger right we'll talk about the transaction flow of hyperledger to understand how this permission to blockchain space differs from the permissionless blockchain in terms of executing the transactions right if you go to hyperledger.org you can see find that th... Read More

Questions & Answers

Q: What is the main difference between permissioned and permissionless blockchains?

The main difference is that permissioned blockchains, like Hyperledger, require participants to have permission to join and execute transactions, while permissionless blockchains, like Bitcoin and Ethereum, allow anyone to participate without needing permission.

Q: How does Hyperledger ensure transaction validity?

Hyperledger uses an endorsement policy where designated peers, such as managers and VPs, must endorse a transaction for it to be considered valid. This ensures that transactions meet the company's rules and requirements.

Q: How does the transaction flow in Hyperledger differ from other blockchains?

In Hyperledger, the transaction flow follows an execute-order-validate model, where transactions are first executed, then ordered into blocks, and finally validated by all peers in the network. This differs from the order-execute model used in permissionless blockchains.

Q: Why is there no cryptocurrency in the Hyperledger blockchain?

Unlike permissionless blockchains, where miners are rewarded with cryptocurrency, Hyperledger is used within organizations, where employees write transactions and are already compensated with salaries. Hence, there is no need for a cryptocurrency reward system.

Summary & Key Takeaways

• Hyperledger is an open-source project by the Linux Foundation, with contributions from companies like IBM, Accenture, and Goldman Sachs.

• Unlike permissionless blockchains, Hyperledger follows an execute-order-validate model for transaction flow.

• The transaction flow in Hyperledger involves transaction endorsement by designated peers, block creation by an ordering service, and validation by all peers in the network.