Distributed Ledger Technology: How It Works and Why It Matters (Part 2)

Blockchain and world state are two main elements of the distributed ledger.

Blockchain is simply a cryptographically linked list of blocks (as introduced in , Blockchain 101) and world state is a key-value database.

How It Works and Why It Matters (Part 2)

This database is used by smart contracts to store relevant states during execution by the transactions.

These transactions contain chaincode, which runs transactions that can result in updating the world state.

Each node saves the world state on disk in LevelDB or CouchDB depending on the implementation.

As Fabric allows pluggable data store, you can choose any data store for storage.

A block consists of three main components called Block header, Transactions (Data) and block metadata.

0 with the relevant fields: Block structure Block Header consists of three fields, namely Number, Previous hash, and Data hash.

Why This Matters for Blockchain Technology

Transaction is made up of multiple fields such as transaction type, version, timestamp, channel ID, transaction ID, epoch, payload visibility, chaincode path, chaincode name, chaincode version, creator identity, signature, chaincode type, input, timeout, endorser identities and signatures, proposal hash, chaincode events, response status, namespace, read set, write set, start key, end key, list of read, and Merkle tree query summary.

Block Metadata consists of creator identity, relevant signatures, last configuration block number, flag for each transaction included in the block, and last offset persisted (kafka).

database. This database is used by smart contracts to store relevant states during execution by the transactions. The blockchain consists of blocks that contain transactions. These transactions contain chaincode, which runs transactions that can result in updating the world state. Each node saves the world state on disk in LevelDB or CouchDB depending on the implementation. As Fabric allows pluggable data store, you can choose any data store for storage. A block consists of three main components called Block header, Transactions (Data) and block metadata. 0 with the relevant fields: Block structure Block Header consists of three fields, namely Number, Previous hash, and Data hash. Transaction is made up of multiple fields such as transaction type, version, timestamp, channel ID, transaction ID, epoch, payload visibility, chaincode path, chaincode name, chaincode version, creator identity, signature, chaincode type, input, timeout, endorser identities and signatures, proposal hash, chaincode events, response status, namespace, read set, write set, start key, end key, list of read, and Merkle tree query summary. Block Metadata consists of creator identity, relevant signatures, last configuration block number, flag for each transaction included in the block, and last offset persisted (kafka).

Key Points to Remember

  • Distributed ledger Blockchain and world state are two main elements of the distributed ledger.
  • Blockchain is simply a cryptographically linked list of blocks (as introduced in , Blockchain 101) and world state is a key-value database.
  • This database is used by smart contracts to store relevant states during execution by the transactions.
  • These transactions contain chaincode, which runs transactions that can result in updating the world state.

Conclusion

Distributed ledger represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.

Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.