How To Build Your Blockchain App Using Hyperledger Fabric

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How To Build Your Blockchain App Using Hyperledger Fabric

Last Updated on November 21, 2023

Hyperledger Fabric is becoming the most popular blockchain framework used by enterprises and midsize businesses nowadays. However, it cannot be easy to understand due to its flexibility and strength.

This article walks through the components and details and provides a quick start guide to Build Your Blockchain App. 

Before we get into the good stuff, it’s important to understand what a blockchain is, why it’s important, and how it works. This is the first step towards penetrating the world of blockchain and the frameworks that can be built on top of it.

What Is Blockchain?

The blockchain is a technology that enables a distributed ledger that tracks all changes or transactions that occur on the network. This ledger is distributed and resides not on a single isolated server but on all the systems that are part of it, where the system members are called nodes or peers.

The blockchain network uses software modules called smart contracts (also known as chain codes in Fabric) to control access to the distributed ledger, automate processes, control aspects of transactions, and perform specific actions when specific predefined conditions are met. 

Any changes or transactions occurring in the network will be approved or rejected by consensus among all participants in the network. Once confirmed, the transaction is recorded on the ledger. Data or transactions that occur on the network and are written to the registry are encrypted, stored in blocks, and then immuted (or immutable).

Benefits of Blockchain

What Are The Benefits Of Blockchain?

  • High Degree Of Accuracy

A network of hundreds of computing devices approves payments on blockchain systems. This virtually eliminates human interference in the authentication process, reduces human error, and increases the reliability of data collection. If one of the computers in the system causes a technical error, only one blockchain record will be affected. 

At least 51% of the machines on the network must not make this mistake to run the rest of the blockchain. This is almost impossible with a huge and evolving network like Bitcoin. 

  • Importance Of Confidentiality

Many blockchain networks act as open databases, giving anyone using Internet services access to the latest transactions on the network. Users have access to transaction details, but they do not have access to the payer’s personal information. It’s a common misconception that blockchain networks like Bitcoin are private, but they aren’t. 

This is the reason why Blockchain technology is being adopted in some of the most important industries like Healthcare and Finance in many ways.

  • Reduced Maintenance & Transactional Costs

Customers typically need a bank to certify transactions, a registrar to certify paperwork, or a preacher to marry them. Blockchain eliminates the need for third-party authentication and associated charges.

As soon as a company receives a credit card transaction, it must pay a low price to the bank or payment service provider to process the transaction. On the other hand, Blockchain does not have centralized privileges, and transaction costs are negligible. 

In short, blockchain networks help reduce the time, costs, and risks associated with sensitive data and operations by coordinating corporate networks through a common ledger while increasing trust and transparency. Now you have a better understanding of blockchain and why it works. There are many other variables to consider, but they are all related to data and process exchange principles.


    With Customized On-Demand Solutions by OyeLabs

    What Is Hyperledger Fabric?

    Hosted by the Linux Foundation, Hyperledger Fabric is a private, permissioned, open-source blockchain solution. Private means that the blockchain network is not public, and only invited parties can join the network. Permissioned means that each party is identified and each transaction has been authenticated, approved, verified, and tracked.

    You can run Fabric Networks on-premises or use blockchain as a maintenance platform to support your registry infrastructure. 

    Once a network is created between multiple parties, it can exchange sensitive data with each other. Hyperledger Fabric blockchain solutions are useless if a blockchain application does not interact with multiple parties.

    Features of hyperledger fabric

    This is because the purpose of the Fabric blockchain network is to provide trust between two or more parties, organizations, or organizational units. It prioritizes several key features as part of the Fabric architecture. 

    • Privacy:

    Fabric must identify every computer on the network. Potential members of a fabric-enabled network must sign up and identify themselves through a Membership Service Provider (MSP).

    This is called “permissioned” membership. Data privacy is important in many industries, and that aspect alone makes Fabric an attractive option. Fabric does not require permission for any part of the blockchain. The need for permission is at the discretion of the network designer.

    • Channels:

    The framework provides the ability to partition the ledger into “channels,” allowing network participants to create separate sets of transactions that are not visible to larger networks. This isolates more sensitive data from sites that do not require access. 

    • Scalability.

    Another attractive feature of Fabric for large enterprises is the highly scalable networking that Fabric provides. You can quickly scale the number of nodes participating in the network as with any other implementation.

    However, the system can process large amounts of data with fewer resources. This allows you to enjoy the best of both worlds. A blockchain can be built with a small set of nodes and can be scaled as needed. 

    • Modularity:

    The fabric architecture allows individual components to be added and implemented at different times. Many components are optional and can be omitted entirely or added later without affecting functionality. 

    This feature is designed to help companies define what they need and what they don’t. Some of the components that are considered modular or “plug and play” include how consensus is built, membership services for identities, proper ledger storage, specialized access APIs, and integration of connecting code.

    How the Hyperledger Fabric Works

    How Does Hyperledger Fabric Work?

    Traditional blockchain networks cannot support the most important private transactions and confidentiality agreements for the enterprise. In response, Hyperledger Fabric was developed as a modular, scalable and secure foundation for providing industrial blockchain solutions. 

    Hyperledger Fabric is a blockchain open-source engine that handles the most important features for evaluating and using blockchain in business use cases. 

    A participant’s verifiable ID is an essential requirement within a private industrial network. Hyperledger Fabric supports qualification-based membership. All network participants must have a known ID.

    Many industries, such as healthcare and finance, are bound by data protection regulations that require data maintenance for different participants and access to different data points. Fabric supports such qualification-based membership.

    Use Cases Of Hyperledger Fabric

    • Supply Chain

    A supply chain is a global or regional network of suppliers, manufacturers, and retailers of a particular product. Hyperledger Fabrics can improve supply chain transaction processes by increasing the clarity and traceability of transactions within the Fabric. Enterprises authorized to access the registry on the Fabric Network can view data from previous transactions.

    This fact increases liability and reduces the risk of transaction fraud. Real-time production and shipping updates can be updated on the ledger. This makes tracking product status much faster, easier, and more efficient. Blockchain has many uses in supply chain management.

    • Trading & Asset Transfers

    Many organizations or members need to trade and transfer assets such as importers, exporters, banks, and brokers. They cooperate with each other. And even in the digital age, there is a lot of paperwork going on in this area. 

    However, with the help of Hyperledger, you can trade and interact with each other without any paperwork. The Hyperledger framework can add the same level of trust as a document signed by a trusted authority. It also improves system performance.

    Another advantage of the Hyperledger framework is the ability to dematerialize assets on blockchain networks using the Hyperledger framework. This gives traders or interested parties direct access to financial instruments to trade at any time. 

    • Insurance

    The insurance industry spends billions of dollars to avoid insurance fraud or false claims. The Hyperledger framework allows insurance companies to reference transaction data stored on the ledger.

    Hyperledger Fabric can also speed up bill processing and automate payments with linked code. This process is also useful for dealing with multilateral subrogation requirements where you can automate payments from the guilty party to your insurance company. 

    This private blockchain makes the identity verification or KYC process easy.

    What Makes Hyperledger Fabric So Appealing?

    • It Is Open-Source

    Hyperledger Fabric is an open-source blockchain framework hosted on a Linux platform. There is an active developer community. The code is designed to be publicly available. All community members can view, modify, and redistribute the code as they see fit. People from all over the world can help develop the source code. 

    • It Is Private & Confidential

    In a public blockchain network, every node receives a copy of the full ledger. So, confidentiality becomes a much more serious issue as everything is open to everyone. In addition, the identities of all participating members are unknown or unverified.

    Since it is a public blockchain, anyone can participate. However, in the case of Hyperledger Fabric, the identities of all participants are authenticated. And the ledger can only be accessed by authenticated members.

    This benefit is most useful in industry-specific cases where customer data needs to be kept private, such as banking and insurance. 

    • It Gives You The Option To Control Access

    Hyperledger Fabric has a virtual blockchain network on top of a physical blockchain network. It has its own access rules. It uses its own mechanism for ordering transactions and provides an additional access control layer.

    This is especially useful if participants want to restrict access to data and make it confidential. Make it visible only to the parties involved. For example, if two competitors are on the same network.

    The framework also provides for the collection and availability of personal data. Here, one competitor can control its data so that it is not passed on to another competitor. 

    • The Chaincode Functionality

    Contains container technology for hosting smart contracts called Connection Codes that define the system’s business rules. It is also designed to support a variety of pluggable components and to match the complexity inherent throughout the economy. This is useful for some specific types of transactions, such as changing the ownership of an asset. 

    • The Actual, Real-World Performance

    Since the Hyperledger fabric is a private blockchain network, there is no need to verify transactions on this network, which speeds up transactions and improves performance.

    Methods to Create Blockchain app using hyperledger fabric

    How Can You Create Applications Using Hyperledger Fabric?

    When it comes to creating applications using the Hyperledger Fabric, you have three primary options to play around with:

    • Via template
    • By outsourcing
    • Or getting it developed in-house.

    Let’s discuss these pointers individually.

    • Templates

    The Hyperledger template is up and ready to get started with apps, smart contracts, and blockchains. It is created by professional programmers in large enterprises to simplify the process of introducing blockchain into business, as the templates do not require large financial and labor resources to use. 

    You can compare Hyperledger templates to WordPress website templates or their equivalents for better understanding. WordPress allows any internet user to create a website in 30 minutes without coding, web design, or layout skills.

    Working with templates for Hyperledger-based applications isn’t easy, but it’s just a matter of time. In 5-10 years, the template database will contain solutions for everything from simple transactions between users to the most secure and reliable referendum system, and the complexity of the application will not differ from the complexity of working with WordPress.

    • Outsourcing

    Outsourcing is the subcontracting of certain tasks or processes to third-party contractors. In our case, this is a transfer of work that creates blockchain applications, deployments, and tests. Your best bet is if you have enough resources to hire experienced programmers and are not willing to engage in self-development or oversee it in your own company. 

    There are many companies developing Hyperledger blockchain applications, but only a few experts in the field. Because blockchain is a new technology that only 5000 programmers worldwide understand at an expert level. The statistic is quoted by William Mougayar, a crypto investor and author of Business Blockchain.

    What to look for when looking for a developer company:

    • Find a team with a list of completed projects detailing what was required and what ultimately happened. In some cases, software products are used and evaluated for usability, reliability, and performance.
    • Find and reach out to the development companies you are interested in and the companies you have already worked with.
    • Working hours, communication languages, programmer remuneration fees, translation fees – all depend on the location of the customer and contractor.
    • We recommend that you choose a developer who has already worked in the required field.
    • Information tracking. Use resources like WebChecker, GlassDoor,, and LinkedIn to check who they are. 

    Be careful with who and where when labeling multiple companies for an interview. This must be the representative of the fully equipped office. Ask him for a tour of the hardware and programmers.

    • In-House Development

    You can hire a team of programmers on your staff to create your own blockchain applications. This gives you full control over the development process, but you need to find resources and a programmer workspace. 

    This is quite burdensome as the average cost of a blockchain programmer in North America is between $80 and $100 per hour. 

    Of course, you can hire experts from other countries to work remotely, but it is better to outsource to an experienced blockchain app development company if you choose this option. This is because there are many problems with setting up the development process, communicating between different experts, controlling tasks, etc. 

    The most difficult way to build blockchain applications is when you decide to do it on your own — without any external help. This is even tougher, especially when you don’t have advanced programming skills. Then everything will be faster and easier, but the application development process will not be easy in this case. Do I need to make something very simple (not needed by anyone)?

    Wrapping Up

    Blockchain technology is relatively new so it is hard to estimate the cost of blockchain app development and hire a blockchain developer for your idea.

    You can contact Oyelabs for any of your Blockchain Technology needs. We have an experienced team of blockchain developers that can successfully and seamlessly help you in launching your blockchain-based app.

    Comment (1)

    1. Jayesh Solanki

      Kindly help me to connect Mobile App data to Blockchain Network using Hyperledger Fabric Network.


    Comments are closed.

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