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I am a bit confused about where the smart contracts are executed on the Hyperledger network. As I understand it, there are:

  1. Peers (assigned by the admin) who are validating the data which is uploaded by the nodes of the network. Therefore the nodes are not doing any work in the network.
  2. And nodes which are passive clients using the network to send and receive data.

So are the contracts executed on a peer's computer?

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The TL;DR; version is that Hyperledger Fabric has 2 basic types of nodes: peers and orderers. Peers are used to endorse transactions (which means they execute chaincode which is the analog to smart contracts).Clients use the peer APIs to submit transactions to the peers.

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