A permissioned blockchain, also known as a private or consortium blockchain, is a type of blockchain network that only allows authorized entities to participate as validators, miners, or users. Unlike public blockchains, where anyone can join the network and contribute to the process of block validation, permissioned blockchains are managed by a select group of individuals or organizations.
In a permissioned blockchain, all participants are required to go through a screening process before they can be granted access to the network. This screening can involve background checks, identity verification, and other security measures that help ensure the integrity of the network.
Permissioned blockchains are often used in enterprise applications, where privacy and security are paramount concerns. They are also commonly used in industries with strict regulations, such as finance and healthcare.
FAQs about Permissioned Blockchains
What is the difference between a permissioned and a public blockchain?
A permissioned blockchain restricts participation to a select group of authorized entities, while a public blockchain is open to anyone. Public blockchains are typically decentralized and rely on a community of users to validate transactions and maintain the integrity of the network.
What are some advantages of a permissioned blockchain?
Permissioned blockchains offer increased privacy, security, and control over the network. They are particularly well-suited to enterprise applications where sensitive data needs to be kept confidential.
What are some examples of permissioned blockchains?
Examples of permissioned blockchains include Hyperledger Fabric, Corda, and Quorum.
Permissioned blockchains are a valuable tool for organizations that require enhanced privacy, security, and control over their blockchain networks. By restricting participation to a select group of authorized entities, permissioned blockchains offer a level of confidence and trust that is essential in today’s digital economy.