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Glossary

Permissioned Ledger

November 21, 2023 - Around 3 mins mins to read

In the world of blockchain technology, a permissioned ledger is a type of distributed ledger that operates on a closed-source network. Unlike public blockchains like Bitcoin and Ethereum, which are open to anyone, permissioned ledgers require participants to be known and authorized before they can access or validate activities on the network. This level of control and restriction makes permissioned ledgers particularly suitable for organizations or consortiums that handle sensitive or privileged private information that should not be accessible to the general public.

One key difference between a permissioned ledger and a centralized database is the distributed nature of the ledger. In a permissioned ledger, multiple participants are involved in maintaining and validating the integrity of the ledger. This decentralized approach eliminates the need for a single point of failure, making the ledger more resilient and secure.

Another distinguishing feature of permissioned ledgers is the use of secure cryptography and digitally-verifiable signatures to ensure the authenticity and integrity of the data. This means that all transactions recorded on a permissioned ledger can be verified and traced back to their source, providing an extra layer of security and transparency.

Despite not having tokens like cryptocurrencies, permissioned ledgers offer high performance and scalability. They are designed to facilitate secure sharing of sensitive information among business entities and corporations, ensuring cost-effectiveness and confidentiality. While permissioned ledgers share the characteristic of immutability with public blockchains, public blockchains tend to be more robust in this aspect due to their large network of validators and consensus mechanisms.

The governance mechanism of a permissioned ledger is typically semi-centralized, meaning that it requires agreement from all authorized parties involved. This allows for more control and coordination among participants while maintaining a certain degree of decentralization. However, the level of decentralization, transparency, anonymity, security, and censorship-resistance can vary depending on the specific implementation of the permissioned ledger.

From a legal and regulatory perspective, permissioned ledgers enjoy certain advantages over their permissionless counterparts. Because the participants are known and authorized, it is easier to comply with regulations and ensure that the ledger adheres to relevant laws. This makes permissioned ledgers more appealing for industries that require compliance with strict regulatory frameworks.

There are several well-known examples of permissioned ledgers in the blockchain space. R3, B3i, and Hyperledger are all platforms that provide permissioned ledger solutions for various industries. These platforms offer tools and frameworks that allow businesses to build and deploy their own permissioned ledgers, tailored to their specific needs and requirements.

In conclusion, a permissioned ledger is a closed-source distributed ledger technology that requires participants to be known and authorized. It offers high performance, security, and confidentiality for sharing sensitive information among trusted entities. With their semi-centralized governance and legal advantages, permissioned ledgers provide a viable solution for industries that require privacy and compliance.

Author

Coincu

Glossary

Permissioned Ledger

In the world of blockchain technology, a permissioned ledger is a type of distributed ledger that operates on a closed-source network. Unlike public blockchains like Bitcoin and Ethereum, which are open to anyone, permissioned ledgers require participants to be known and authorized before they can access or validate activities on the network. This level of control and restriction makes permissioned ledgers particularly suitable for organizations or consortiums that handle sensitive or privileged private information that should not be accessible to the general public.

One key difference between a permissioned ledger and a centralized database is the distributed nature of the ledger. In a permissioned ledger, multiple participants are involved in maintaining and validating the integrity of the ledger. This decentralized approach eliminates the need for a single point of failure, making the ledger more resilient and secure.

Another distinguishing feature of permissioned ledgers is the use of secure cryptography and digitally-verifiable signatures to ensure the authenticity and integrity of the data. This means that all transactions recorded on a permissioned ledger can be verified and traced back to their source, providing an extra layer of security and transparency.

Despite not having tokens like cryptocurrencies, permissioned ledgers offer high performance and scalability. They are designed to facilitate secure sharing of sensitive information among business entities and corporations, ensuring cost-effectiveness and confidentiality. While permissioned ledgers share the characteristic of immutability with public blockchains, public blockchains tend to be more robust in this aspect due to their large network of validators and consensus mechanisms.

The governance mechanism of a permissioned ledger is typically semi-centralized, meaning that it requires agreement from all authorized parties involved. This allows for more control and coordination among participants while maintaining a certain degree of decentralization. However, the level of decentralization, transparency, anonymity, security, and censorship-resistance can vary depending on the specific implementation of the permissioned ledger.

From a legal and regulatory perspective, permissioned ledgers enjoy certain advantages over their permissionless counterparts. Because the participants are known and authorized, it is easier to comply with regulations and ensure that the ledger adheres to relevant laws. This makes permissioned ledgers more appealing for industries that require compliance with strict regulatory frameworks.

There are several well-known examples of permissioned ledgers in the blockchain space. R3, B3i, and Hyperledger are all platforms that provide permissioned ledger solutions for various industries. These platforms offer tools and frameworks that allow businesses to build and deploy their own permissioned ledgers, tailored to their specific needs and requirements.

In conclusion, a permissioned ledger is a closed-source distributed ledger technology that requires participants to be known and authorized. It offers high performance, security, and confidentiality for sharing sensitive information among trusted entities. With their semi-centralized governance and legal advantages, permissioned ledgers provide a viable solution for industries that require privacy and compliance.

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