MODULE 05 elassmate

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PRIVATE BLOcKCHAIN

TCo CTnitial coin offcing)

Tco isthe cyetocuNreney industry's cquvatnt of an
initdl publle otfing to edte
à ACompany [eeking 48 naise
seicecan can
larcè. an LCO dS a
4app or seice
coinapP
to alse funds. ox capital.

»In privade Blockchain d

Singk ngniztion wi b
charg netaork and
of the and be dble to Comtrol
nwho can acess jon t.

dedentalized

there ane move trangaetion por seCmd cTPS)

Key charaetaisicsf privatt Blockchain:

Completc privacy privay ssus
P.B. ten d to bc more centaliZ
Tmprovo d or
highy sabable
Alesibili
denamd can be
oadd nodes
aa
and srviS oy
oT aninachioy
benefito the
High pator: mam cequick fransaction s
Robust Architecture
PivatcC netoorks currenth have one
Stab fo Dl shuctues ofthe ma
are designod 40 coitthS4an d any
> Hih ECurthy Mechanisn problens.
preventing Ynalicios actiyítt
 ConseSUs Problen
SMR- ste Machine Replication.
SME s a family of p1otocols that alsw ic
nades to joint maintain a consiscnt iaset of
Iede,wen
when ä
atalnractton ornodo ae Breantine.
State Machine Replicotion hilps us tó
ConsenSus in a
achieve a

pesmission Model.
We do not need to erecute a srnast psnta c+ to au
the nsds. Rather, the selected subset of contra t
executor exects it and propoqdtes it wth Gther nodo
to the contracs statu
tho modes unformlyy in ithe netwok
Statc Machine.

t is characte4ized by iaset of parqmetots sueh ag

sct of Inputs, set of butputs and theransitlon sts

A: set of state Cs) based on the system desim,

A set of Tn pts (T)
A Set of outputs (o)
A
ransition fumtion :SXI>S
taKes the curnem state S2,
npt vcl ue Rprody cs q
Set af theoutput.
autput function: s’0
A
4 stat stte
State Machine
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BlocKchain
ConsenSus Algorithms por Privete
of
o protocoj for solwing
4) PAXOSL is
a-{amiy
Con sensus in distubuted nlwd
the po blem of
from Aay
Greece CIsland of Paxo
2> Namne pAXOs. Came
paxoS is the oldest Consensus protoco) publKshey
3) leslieLamport
way back 0s,1983 b4
dttabases 1ike
4) PAXOs is used in mutiple qaph
neo4

Let'stake reat life example of hoo paxos

> There ane 4 fiendS named Raish, Robit&

Sufesh &
& vigey out Rohit!'s blace
hanqing
2 Rajesh is listening to music witth his eavpluqs
and mot ( 1i steninq to what otheg
saying
3) Suesh suqgests hat hey au shed go for
movie amd
VWay agrec's oth him.
49) ghn, Rajesh removes his eas plugs md sugget
4 thej au shoud go for booling. Rohit aqrees
oish him. & vijay chan gcs Ohis decision
agiees Rohit for bowkng
5) Sine, he othor three agree on bowng
Suresh has no choice but to go -for bodli
go
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pAXOS aiqosthm
qhere are 3 Rales in paxos
1. Pxoposer's
Csueshand Rajesh)
-.Acceptor's Cviay and Rohit)
3, Listeners (Raesh ottera Conensus eacheA

you can see above

baoling
any
ang actor can take Toe
at
qiven point of tie
Proposy úwant to propose
propaseaa Walue Vanj wantS
the stem to Teach Consen Sus onibs value,
Hencet Kends a pepate Tequet along uoth
an id to cl accptor's gnd eXpectS promis
YeSponse alonq oth a Value
at's con sidey amether cKample to' under stand a basic
inteactión bet ween cll these roles,

|Acce ptorA JAcceptor 2 ]Aceetov3 JLearner

Prepane id

Accept-yquof
dyvalut

value
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As you can see, thepropoSer prOSes ydtqet!s

ccepte d by a majonty and then the preposer
propose S Valueo t h d
please mote that Acceptoe 3 hoas not neSpondod
ith promise id
A Con sonsus has beenneachedo this Nalue
&this value ispropoq ated to al ithe nodes
including listené

RAFT Algo ithm

Raft cam bein deseibed as a
paxosia
simpler version f
Tt 9as desiqned fo beinq more
moT understamd able
than Paxos
’Tt s a neo protoco| beinq
develo prd
2Rftsuscd in
etcd,docker
Al) these ystem to name a feu
ane sedin sit. (

Roft decom poses into, Lcader

leg propogation pha ses election and
Atter leader
and Elcction, lcadey taks au the decisions
Ydered cOmmunicates to al other nodes
hyee possibk
througb
censeYsus states for
pgócol nodiin Raft
Leeder 2
Fo1] o e & 3. candidate.
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AlL the nodes staxt off with a FollotoeY sAate

Tf followerls dont hear fom a
leader, then
they Can be conme a Candidtc.
’the candid ate the Tequest Votes om other
nodes.
he candid dte becormes leader ifit gets votes
from majority of nodes, his process is caued
Leader Election

Al) chanqes to the System

leader. Each change is added as an etry inthe
nodels l6g. This loq's are seplicated to oher modcs
caled as LoqReplication.
Leader Election:

Every follower waits for aveestaln amoun f

Hime before be Coming ca candid te. This tjme
is cale d the electiáh timeOut

After eletion timeot the tollower becomes Cemdidate

and startsa new election iterm
Request ote
It votes for tsef amd Sends a t
messaqes to other Modes.Afer eceiving node
hasnt yoted yet in this term_,thcn t votes
for the Candidate ond the node (meset it eletion
timeout

Oncc d can dì da4t has a majonit of votss '

beomes leadr
follooels
Leader keeps sending xeqular messatí to
Kecp it's st dtus leade,
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calleda heaTtbeat mejsage.

called
this messaqe is. heartbect
receive ee
doesnl4 timeintervaltCan
ollower
Tf a
a certain
messaqe In Candidcte cycea
cnd the cohole
becomne a LoillYEpedti
o leader ele c+is

axe 3 modes aetinq

For example,therehas a different olection time
afollowr, Each
out window

Follouoe
Followe
Election Electtorm
Tmeout Timco
200 ms 250 m

Follouoe
Eletion
Timeot

-follo uwct uwiththe afosest election timeodt

veuMe becomes a CandidicEte Cn asksfor

ifFolouEY Follouoer\

ask
Note votc

candidat)
Vote
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After the vote has been

becomcs Leadr.
qramted, camdidate

Folloutr (Folooer

trant
Vote
qranb
Vote

oandidatd

Now, ohen every body has voted, Ne bave a Leader

followe
94

Leade

loq seplicatlon
once we have a leadeY elected , oe need to eplictte
changes to OUr gyStem to al n6des,
his is done by using APpend etrics messages to
the followerls
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Hypelcdqc
what is Hyperledqi
ledger
Hyperi sau opeo- sourC (ommuntythat ofPfezr
andfocusses on developing suatable framewoik
toos andibranies fol enterp*S - qrade
blocKchain deployment
> The inux Eoumddtlon hosts this aabcu collaboction
which comprises professiondl in finane banki
the intcnet of things supply chains
manufaeturing amd tthnolegy
Historsy of Aypeledqct
’Anmouned in 20sayear betore its rleas
Hypesleder praject oould

Hypesledgr FabxiC and ib ConSeniuiwere, two

of the frst blocKchain famewore ' codebeses
aceepted.
Latcr
Sawtooth,itel's distrib uted Aedqe
was incub ated.
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Layers of HyperledqerTechnology
1) The Consensus Laye1,

sees
I t oVe rsees Teaching an
ageement on the order
and veri fying
transaction.
de accunacy of the blocks

2> The Smart contat laye

It is charge ot piocessin transactian requests

and on autheizinq xansaction, that ae
Valid

3> he communi caion Layes

peerr to- Peer Messaqe transt is handiel by th
Communication (ayer. s

4) Tdertit4 Manaenent Sevices

andNalid ating
’ sheaare mequired for maintaing
user and System jdentitles.

S) APPlicatlon PrÇgramming Inteface CAPI'S)

It is used by etesnc pioqrarnmeli and clientl
to jnteract
4o with the bckchain.

4
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Organizaion tructure ot ypeta dger Technoll

It cnable he development of Vaious block
Chain based sstems applícatlons fov indushie
Stamdqds,& infrastuetuit.
by proviamg
IHypeslederl
CLI'S
SDK CcoTmnmani
APplicatoy Softwne
Development iLinc
programg
Imefaee
Kit Interfac'

15 ARI's tMem bership servicels]

i)A certificate of cytoqraphy or A set of
(Yptographic cetificate s to validate peexs
f Same Membenship sevies
Siqnifiesthat petr belonqs to the samm
rganization,
iii) Helps in Commumi cation between pes of
seme Membeiship services.
92) SDk T.Blec kchain: and. Tvans ation lay
Constitutes the coe Code ot the blockchaln
ConsistS of consensug aleoithm
consist s of Distnbted ledqer a
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\edger storage.
v t has a peertopeer proocol.
’3)CIS
Membership Services,
’ consist of chaincode, which is layer of
loglca
proqiamming zwhich con Sis(s of the business
logic equlied to un in opesation on the
Hypeledge

ehaincde

peer-to
Peer
netwoT S Ledger

Other HyPerledcy Tools and prajects

1 Hype ledqcr
4) Fabric
oth
2) Hyper ledqer Sauoto
TRO HA
3) Hypesledqcr INDY
4) Hypesledqer
S) Hypeledqer BESU
CAIPte
6> Hpailed qer EXPLoRER
7) Hypeledger
HyPerledger cELLO
BURRow