Introduction:

Blockchain is a decentralized, distributed, and public digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the consensus of the network. It is the underlying technology behind cryptocurrencies such as Bitcoin, but can also be used in a wide range of applications beyond just digital currencies, including smart contracts, supply chain management, voting systems, and more.

A permissioned blockchain.

A permissioned blockchain is a type of blockchain network where access to the network and participation in the consensus process is controlled by a central entity or a group of entities. In a permissioned blockchain, only authorized entities or individuals are allowed to read, write, or validate transactions on the network.

Key features of permissioned blockchains.

1. Controlled Access: Permissioned blockchains restrict access to the network, requiring users to be identified and authorized before they can participate in the network.

2. Centralized Governance: Permissioned blockchains often have a centralized governance structure where a central entity or a consortium of entities makes decisions regarding the network's rules, protocols, and access permissions.

3. Enhanced Privacy: Permissioned blockchains offer higher privacy levels compared to public blockchains, as only authorized participants have access to the network and can view transactions.

4. Scalability: Since permissioned blockchains have a limited number of participants, they can achieve higher transaction throughput and scalability compared to public blockchains.

5. Compliance: Permissioned blockchains are well-suited for use cases where regulatory compliance is crucial, as they allow for more control over who can access and participate in the network.

A permissionless blockchain

A permissionless blockchain is a type of blockchain network where anyone can participate in the network, read the transactions, and validate blocks without needing permission or approval from a central authority. In a permissionless blockchain, the network is open to anyone who wants to join and contribute to the consensus process.

Key features of permissionless blockchains

1. Decentralization: Permissionless blockchains are decentralized networks where the power and control are distributed among all the network participants. There is no central authority that governs the network, and decisions are made by consensus among the participants.

2. Transparency: All transactions on a permissionless blockchain are visible to all participants, promoting transparency and accountability within the network.

3. Open Access: Anyone can join a permissionless blockchain network, create a wallet, and start sending and receiving transactions without needing authorization from a central entity.

4. Consensus Mechanisms: Permissionless blockchains typically use consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS) to validate transactions and add new blocks to the blockchain. These mechanisms ensure the security and integrity of the network.

5. Immutable Transactions: Once a transaction is recorded on a permissionless blockchain, it cannot be altered or deleted, ensuring the integrity of the data stored on the network.

Conclusion:

Permissioned blockchains are commonly used in enterprise settings where organizations require control over their blockchain networks, increased privacy, and adherence to regulatory requirements. They provide a more tailored and controlled environment for specific use cases and can offer benefits in terms of speed, security, and compliance. In Permissionless Blockchain anyone can participate, read, or write to the network without needing permission. It is also known as a public blockchain as there is no central authority controlling access or validating transactions.