The blockchain technology is distributed in two categories: public blockchain and private blockchain. The public blockchain is named as Ethereum and the private blockchain is named as Hyperledger.
While using the public blockchain the transaction details are visible to all the connected entities. If the transaction is confidential and private, then the public blockchain cannot be used. Instead of the public blockchain, we can use the private blockchain which named as Hyperledger.
Why to use Hyperledger?
Hyperledger is an umbrella project of open source Blockchain and related tools started in December 2015 by the Linux Foundation. It permissioned blockchain, means any entity wants to join the network must have the permission. It uses the distributed ledger technology to record the transactions in the ledger.
There are many open source projects of Linux and Hyperledger is one of them.
Hyperledger initiatives are categorized in two categories:
1. Hyperledger Sawtooth: led by intel
2. Hyperledger Iroha: led by Soramitsu
3. Hyperledger Fabric: IBM donated its source code for its blockchain initiatives called OpenBlockchain and that combine with source code from other partners such as Digital Assets incubated the Hyperledger Fabric
4. Hyperledger Burrow: is the most recent addition from Monax.
1. Hyperledger Cello: is an initiative that aims to simplify creation and management of Blockchain infrastructure.
2. Hyperledger composer: is for creating business network application using the high-level composer language.
3. Hyperledger Explorer: provides visibility to an operational Blockchain system.
4. Hyperledger Quilt: aims to achieve interoperability between different chains.
Distributed Ledger Technology(DLT):
Why to use the DLT:
Each and every industry is involved in the exchanging in some form value. For example, the retail industry is exchanging some goods for the cash. The financial industry exchanges the bonds and the stocks.
The Assets is representing the value. Assets are tangible means, we can touch it in physical world, for example car and house or Assets can be intangible, for example stock ownership certificate and reward points for the customers.
All the company must keep the tracks of all business transactions related to the Assets in a book of record also called ledger. This ledger keeps track of the exchanges happening between the businesses and other entities.
Here we are taking an example of the car company, A car manufacturing company build a car that is also an Asset. This is recorded in the ledger of car manufacturer. Now, the car company transferring the ownership of car to the car dealer, this transfer is written by car manufacturer company in its ledger.
Dealer also owns the ledgers; it also creates an entry in the ledger that it received the car ownership from manufacturer. When the dealer sells the car, the transferring of the ownership of the car from dealer to the customer is recorded in the ledger. The entities do not have visibility to each other ledger.