The connection between blockchain and cryptocurrencies is quite clear, but what does blockchain have to offer businesses? The platform that has greatly contributed to blockchain technology development for enterprises is Hyperledger. Let’s take a closer look at this project and see how it has already transformed many businesses.
The Hyperledger project was founded in 2015 as an open-source collaborative effort that aimed to advance blockchain technology. Hosted by the Linux Foundation, the project has received support and contributions from many leading IT companies such as IBM, Intel, Hitachi, R3, J.P. Morgan, and others.
Briefly about Hyperledger frameworks
In general, the Hyperledger project includes frameworks (DLTs), tools, and libraries. Those looking to build their own blockchain network are advised to start with one of the DLTs:
- Hyperledger Fabric
This framework has become one of the most popular DLTs, and many refer to it as the key enterprise blockchain platform. Fabric has a modular architecture and allows the creation of private channels for particular network members. This option is intended for cases where certain transactions and data must be kept confidential. Hyperledger Fabric also guarantees high transaction speed – over 3500 transactions per second.
- Hyperledger Burrow
Hyperledger Burrow supports smart contracts based on EVM and WASM. Essentially, Burrow runs the Ethereum smart contract code on a permissioned virtual machine.
- Hyperledger Indy
Hyperledger Indy provides tools and libraries for creating blockchain-based digital identities. They are compatible with administrative domains and applications. Indy can interact with other blockchains or be used autonomously.
- Hyperledger Sawtooth
Hyperledger Sawtooth serves the same purpose as Fabric: it is an open-source project that provides a blockchain platform for developing distributed LEDGER networks and applications for enterprises. Their main difference is that Fabric only supports permissioned blockchain while a network built with Sawtooth can be both permissioned and permissionless.
- Hyperledger Iroha
Hyperledger Iroha is a permissioned blockchain framework designed to simplify digital asset management. Iroha can be easily integrated into existing business processes and projects involving DLT implementation. Iroha contains built-in commands that don’t require writing complex code, so regular tasks can be done faster, easier, and with less risk.
- Hyperledger Besu
Hyperledger Besu was introduced as part of the Hyperledger project in 2019. Besu is an Ethereum client built on a modular architecture and created for enterprises. It also became the first blockchain project under the Hyperledger’s “roof” that can run on a public chain but remain a permissioned network.
Thus, each framework is unique and designed for specific purposes. Based on their characteristics, businesses can decide which one suits them best.
Hyperledger: 8 enterprise blockchain use cases
Hyperledger can be used in many areas such as supply chain management, retail, aviation, education, energy, finance, etc. Here is a list of companies and institutions from around the world that have trusted Hyperledger to innovate their workflows.
IBM
As one of the creators of the Hyperledger project, IBM has already delivered many solutions based on Hyperledger frameworks. In 2017, for instance, IBM partnered with Sichuan Hejia Chinese conglomerate and built a permissioned blockchain platform on Hyperledger Fabric. The platform was designed to optimize supply chain financial services for pharmaceutical procurement.
IBM has also participated in the creation of a distributed database for managing the electricity grid in the Netherlands and Germany, building a blockchain platform for trade financing together with Japan’s Mizuho Financial Group and Mizuho Bank, and many other projects.
Honeywell Aerospace
This global provider of aviation products was willing to build an online marketplace for used aircraft parts. Before that, less than 2.5% of all transactions in the industry took place over the Internet as there were trust issues between sellers and buyers.
As a result, Honeywell Aerospace has created GoDirect Trade – a B2B marketplace where every transaction is recorded on a Hyperledger Fabric blockchain. This marketplace sold $1 million worth of used aircraft parts in the first 10 weeks, and purchase times reduced from days or even weeks to seconds.
American Express
American Express enhanced its reward program with blockchain created with Hyperledger Fabric and made it more flexible. The blockchain doesn’t save personal info such as name and card data. When a consumer makes a purchase, the blockchain only stores the associated transaction details. Points are created and awarded through smart contacts and are later placed on server-side loyalty systems. Each merchant uses a private channel provided by Fabric, so people can’t see each other’s transactions.
Sony Global Education
Sony Global Education has also chosen Fabric to create its next-generation credentials platform. The platform records Japanese citizens’ education and training credentials. The data collected in the blockchain is validated and can be used when applying for a job or entering some educational program.
ScanTrust
ScanTrust turned to Hyperledger Sawtooth to bring transparency to supply chain management. The project goal was to increase Cambio Coffee consumers’ trust by giving them details about the way their coffee had gone before it appeared on their breakfast table. Now Cambio Coffee buyers can scan the label on the coffee package and see its entire journey from harvesting in Peru to delivery to their homes.
Walmart
Walmart has also applied blockchain technology to its supply chain. The American retail giant partnered with IBM to launch two pilot projects: tracing dried mango and pork to their origin. Both projects turned out to be successful. Now Walmart traces the provenance of over 25 products and has obliged its leafy greens suppliers to start using their blockchain platform. In case of a foodborne disease outbreak, for example, it allows them to track products within a few seconds and thus better manage food recalls.
Change Healthcare
Change Healthcare brings together payers, providers, and patients across the US healthcare system. This technology company aimed to test blockchain and demonstrate its ability to process hundreds of healthcare transactions per second. Their goal was achieved: using Hyperledger Fabric, the test network showed a throughput of up to 550 transactions per second.
The National Bank of Cambodia
The National Bank of Cambodia (NBC), in partnership with Soramitsu, launched a pilot project to modernize the country’s existing retail payments. They chose Hyperledger Iroha and created a fiat-backed digital currency through their project called Bakong. Merchants now get a fast, cashless, and secure payment system, and banks can make interbank transfers at a much lower cost.
Summarizing these Hyperledger use cases, we can highlight several advantages of implementing its frameworks. By using Hyperledger platforms, companies significantly accelerate transaction speed, increase trust between network members and customers, and generally create advanced modern systems. The Hyperledger project undoubtedly has the potential to transform many businesses in the future and make blockchain technology the new normal.
Hyperledger serves as the foundation for many solutions and can be applied to even more industries. When considering implementing Hyperledger in your enterprise, it is also important to analyze its feasibility and consult with a Hyperledger development company. Who knows, maybe this project is exactly what your business needs.
About the author
The CEO of PixelPlex Alexei Dulub has been working with blockchain technology for over a decade. Alexei participated in Oxford’s Blockchain Programme which also deepened his knowledge regarding this technology. PixelPlex is a software development company delivering blockchain solutions and offering Hyperledger development services.
