How does data privacy work in Hyperledger Fabric?

Data privacy in Hyperledger Fabric is achieved primarily through the use of channels and private data collections. Channels allow a specific subset of participants to have a private, dedicated blockchain network for their transactions, isolating their data from other participants. This segmentation ensures that only the members of a channel can access the data and transactions associated with that channel.

Additionally, private data collections enable further granularity in controlling data visibility. This means that users can share sensitive data with only a select group of participants while keeping it hidden from others who might be part of the broader network. This approach provides a robust layer of privacy, ensuring that not all members of the network can view all data, which is critical in environments where confidentiality and regulatory compliance are paramount.

Public access to all data would undermine the concept of privacy, and encryption, while a valuable tool for securing data, does not inherently restrict access or visibility to it. Unlimited access to transactions further contradicts the principles of data privacy necessary in a permissioned blockchain like Hyperledger Fabric. Thus, the correct choice highlights the sophisticated mechanisms employed by Hyperledger Fabric to manage data privacy effectively.