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Transaction Flow in Hyperledger Fabric

Transaction in hyperledger fabric reflects the business activity in the
fabric network. Due ensure data immutability the transactions are kept
inside the block and the chain structure is used for protection. In
hyperledger fabric, each node maintains a ledger and the consensus
mechanism is used to keep the ledger updated and identical at every
node. The ledger at each node is composed of two parts, a blockchain,
and a world-state database. The article focuses on discussing the
transaction flow in Hyperledger Fabric.

Assumptions

There are a few assumptions to understand before beginning with the

transaction flow in Hyperledger Fabric.

This transaction flow assumes that the channel is set up and

running.
The application user has been registered and enrolled with the
organization’s Certificate Authority (CA) Certification and received
back necessary Protected cryptographic material, which will be
used to authenticate to the network.
The chaincode containing a set of key representation value pairs is
installed on the peers and deployed to its current channel.
The chaincode contains logic defining a set of active transaction
instructions and the agreed-upon price for a radish.
An endorsement policy has also been set up for this chaincode,
stating that both peer A and peer B must endorse any transaction.

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Transaction Flow in Hyperledger Fabric

Below are the steps in the transaction flow in the hyperledger fabric:

1. Client A initiates a transaction:

Client A sends requests to Client B for purchasing radishes.

The request targets peer A and peer B, who are representatives of
Client A and Client B.
The endorsement policy states that both peers must endorse any
transaction thus the request goes to peer A and peer B.
The transaction proposal which is a request to invoke chaincode
function with the intent to read/ update the ledger is constructed
using SDK.

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The SDK takes the user’s cryptographic credentials to produce a

unique signature for the transaction proposal.
The SDK submits the transaction proposal to the target peer and it
will first forward the transaction proposal to other peers for
execution.

2. Endorsing peers verify the signature and execute the transaction:

The endorsing peers verify that:

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The transaction proposal is well-formed.

It has not been submitted in the past for replay-attack protection.
The signature is valid.
The submitter (Client A) satisfies the channel’s Writers’ policy and
is properly authorized to perform the proposed operation on the
channel.

The endorsing peers take the transaction proposal inputs as

arguments to invoke the chaincode function. The chaincode function
gets executed and produces transaction results, response value, write
set, and read set. Till this point, there is no update being done to the
ledger. The set of these generated values along with the endorsing
peer’s signature is sent to the target peer as the proposal response.

3. Proposal responses are inspected:

In step, the target peer verifies the proposal responses.

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Even if checking is not performed hyperledger fabric architecture is

designed in such a way that the endorsement policy will still be
checked and enforced when each peer validated transactions prior
to committing them.

4. Target peer assembles endorsements into a transaction:

The target peer broadcasts transaction messages containing

transaction proposals and responses to the ordering service. This
includes Channel ID, read/ write sets, and a signature for each
endorsing peer.
The ordering service receives the transactions, orders them, and
creates blocks of transactions per channel. It will not inspect the
entire content of the transaction.

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5. Transaction is validated and committed:

The blocks of transactions are delivered to all the peers on the

channel and they validate the transactions within the block.
The peers validate transactions to ensure the endorsement policy is
fulfilled and there have been no changes to the ledger state for
read set variables since the read set was generated by the
transaction execution.
They tag transactions in the block as valid or invalid.

7. Ledger updated:
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Each peer appends the block to the channel’s chain.

For each valid transaction, the write set is committed to the current
database.
Each peer emits an event to notify the client application that the
transaction is immutably appended to the chain and also sends the
notification whether the transaction is validated or invalidated.

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Last Updated : 02 Jan, 2023 32

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