Hyperledger Fabric has a critical and unique functionality called private channels. A private channel allows a subset of members on a Fabric-based blockchain to create a new blockchain that is observable and intractable only for them. This means that, while Fabric is already private and permissioned, members of that private blockchain can create a smaller, yet more exclusive, chain to trade information that cannot be traded across the full membership network. As a result, Fabric is able to support critical use cases (such as legal communications) that would be impossible or inappropriate to broadcast, even on a relatively exclusive network.

For instance, if Hyperledger Fabric were used to set up a logistics network, the primary blockchain could be used for the tracking of packages, but pricing bids could be done on private channels. The participants of the network would be a number of shipping providers, materials providers, and a set of buyers. A buyer could issue to the blockchain a notice that they were accepting bids for a transfer of some supplies, and they could then create private channels between themselves and all transporters and suppliers. The suppliers and shipping companies could give the buyer time and cost prices, without making that information public to their competitors. While private, all of these exchanges would be encoded on to the blockchain for record keeping, legal compliance, and so on. Moreover, if corporate policy were something like taking the second-lowest bid, the entire process could be automatable through smart contracts.