Hyperledger Iroha is a blockchain platform designed to be easily integrable in various business uses that require distributed ledger technology. The platform can facilitate identity management, such as national IDs, and enhance financial services, including bank-to-bank transfers.
Launched in May 2019, Hyperledger Iroha is one of the projects under the Hyperledger umbrella and is supported by the Linux Foundation. This powerful tool was developed with the contributions of several tech giants including Soramitsu, Hitachi, NTT Data, and Colu.
Key Takeaways
- Hyperledger Iroha is a business blockchain framework crafted for infrastructure projects needing distributed ledger technology.
- The platform is capable of building identity management systems, such as those used for national IDs.
- It supports the creation of software applications for the unbanked, allowing access to financial services, money transfers, and purchasing goods.
- Hyperledger Iroha can integrate with Linux, macOS, and Windows operating systems.
Understanding Hyperledger Iroha
Hyperledger Iroha is built to fit seamlessly into infrastructure projects that require distributed ledger technology. This technology functions like a shared database, enabling public data sharing. Many businesses employ a private blockchain network as the foundation for their software applications (apps), providing tech-based solutions both internally and to their customers.
The platform empowers users to create applications tailored to their business needs, especially for mobile applications. With a domain-driven C++ design and featuring the Yet Another Consensus (YAC) algorithm, Iroha offers solutions to complex sequences of instructions.
Features of Hyperledger Iroha
- Multisignature functionalities for transactions requiring multiple approvals
- Compatibility with various programming languages such as Java, JS, Python, and iOS
- Support for multiple operating systems including Windows, Linux, and macOS
- Modular, plug-in design enabling rapid blockchain deployment
Iroha supports easy deployment and maintenance, an extensive library of code for developers, secure control, and permissions over user roles and activities, simplified asset management, participant identity, and a modular design architecture for the blockchain ecosystem.
An illustrative example: The National Bank of Cambodia uses Hyperledger Iroha to serve the unbanked, promote local currency, streamline compliance for payment providers, and modernize retail payments by delivering cost-effective services. The pilot successfully scaled to more than 10,000 users and 16 banks, processing up to 2,000 transactions per second since July 2019.
Permission-Based vs. Public Blockchains
Iroha differs from popular blockchain networks like Bitcoin and Ethereum, as it operates on a permissioned basis. Unlike permissionless blockchains where anyone can join, a permissioned network like Iroha allows only authorized participants. This approach fosters collaboration and consensus among known participants with shared interests.
Permissioned networks become efficient as they avoid the latency issues seen in public blockchains hamstrung by proof-of-work mechanisms. These networks offer faster resolution of issues since they aren’t compelled by public verification bottlenecks.
Public blockchains, where data and transactions are public, require verification to avoid fraud. In contrast, permissioned networks like Iroha impose restrictions on data reading and verification while allowing native cryptocurrency creation for enterprise-specific usage.
Applications of Hyperledger Iroha
Certifications
Iroha can be used to manage certifications, such as educational degrees or healthcare documents, by enabling verification through qualifying entities, which negates the need for repetitive document submissions.
Digital Avatars
Businesses can create digital avatars of real-world assets, such as cars, to conduct transactions with minimal to no fees. Transactions are efficiently managed through multisignature processes on the blockchain.
Know Your Customer (KYC)
Hyperledger Iroha aids in KYC processes by managing identity requirements for financial services, allowing shared KYC documentation without resubmission to multiple institutions.
Smart Contracts
Iroha supports smart contracts, which are self-executing and facilitate automation of transactions and agreements, ensuring efficient and secure execution devoid of manual intervention.
Example of Hyperledger Iroha
Bakong is Cambodia’s pioneering mobile payment app and the first retail payment system employing blockchain technology. Sponsored by the National Bank of Cambodia and built on Hyperledger Iroha, it facilitates money transfers, merchant payments, and interbank transactions at a reduced cost, enhancing inclusivity by reaching the unbanked population.
Different Types of Hyperledger
There are five primary types of Hyperledger blockchain technologies:
- Hyperledger Fabric
- Hyperledger Sawtooth
- Hyperledger Indy
- Hyperledger Iroha
- Hyperledger Burrow
Most Popular Hyperledger
Hyperledger Fabric is the most popular framework within the Hyperledger umbrella, enabling faster transactions, modern smart contract solutions, and efficient data sharing since its 2.0 release in January 2020.
Alternatives to Hyperledger Iroha
Other platforms and technologies that can be considered alternatives to Hyperledger Iroha include Ethereum, Composer, Ripple, MultiChain, and IPFS.
The Bottom Line
Hyperledger Iroha is a flexible blockchain platform particularly suitable for businesses needing distributed ledger technology. Valuable for financial services and identity management solutions, it is distinguished by its modular architecture, plug-in design, and support for multiple platforms, underscoring its adaptability and ease of use.
Related Terms: Hyperledger Fabric, Ethereum, permissioned blockchain, smart contracts.
References
- Hyperledger. “Hyperledger Launches Hyperledger Iroha 1.0”.
- Hyperledger Foundation. “Hyperledger Launches Hyperledger Iroha 1.0”.
- Hyperledger Foundation. “Hyperledger Iroha Graduates to Active Status”.
- Hyperledger Foundation. “Hyperledger DLT Landscape”.
- Hyperledger Foundation. “An Overview of Hyperledger Foundation”, Pages 4-5.
- Hyperledger Foundation. “Case Study. The National Bank of Cambodia boosts financial inclusion with Hyperledger Iroha”.
- Cryptopedia via Gemini. “What Does Permissionless Mean?”
- Hyperledger Foundation. “About Hyperledger”.
- Hyperledger Foundation. “An Overview of Hyperledger Foundation”, Page 8.
- Hyperledger Foundation. “An Overview of Hyperledger Foundation”, Page 7.
- Board of Governors of the Federal Reserve System. “Bank Secrecy Act Manual: Know Your Customer,’’ Section 601.0”, Pages 1-4.
- Kraken Learn. “Smart Contracts”.
- Hyperledger Foundation. “An Overview of Hyperledger Foundation”, Pages 7-8.
- Hyperledger Foundation. “Case Study: The National Bank of Cambodia Boosts Financial Inclusion With Hyperledger Iroha”.
- Bakong. “The Next-Generation Mobile Payments and Banking”.
- stackshare. “Hyperledger Fabric vs Hyperledger Iroha”.
