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Hyperledger Fabric: Chaincode Upgrade Process

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With Hyperledger Fabric if you have installed a chaincode with one version and try to change the version using the install process (Ie install the chaincode on endorsing peers, send instantiation proposal then send transaction) you will get an error stating that the chaincode has already been installed.

Instead you need to first install the new chain code on required peers (those that will be endorsing) then send a sendUpgradeProposal and finally include a successfully response from the sebdUpgradeProposal to sendTransaction.