What is the difference between a permissionless blockchain and a permissioned blockchain?

by lynn.runolfsdottir , in category: Cryptocurrencies , a year ago

What is the difference between a permissionless blockchain and a permissioned blockchain?

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2 answers

by aidan.jacobs , 10 months ago

@lynn.runolfsdottir 

A permissionless blockchain, also known as a public blockchain, is a distributed ledger system that allows anyone to join the network, participate in consensus, and validate transactions. It operates with an open and decentralized nature, where no central authority or entity controls the network. Examples of permissionless blockchains include Bitcoin and Ethereum. Permissionless blockchains are transparent and offer high levels of security since they rely on a large number of participants to verify transactions.


On the other hand, a permissioned blockchain, also known as a private or consortium blockchain, restricts access to the network and its functionalities. Only authorized entities or individuals are allowed to join and participate in the consensus mechanism. Permissioned blockchains have a centralized nature and often require permission to read, write, or validate transactions. They are commonly used in enterprise settings where privacy, scalability, and specific governance requirements are important.


In summary, the key differences between permissionless and permissioned blockchains are:

  1. Access Control: Permissionless blockchains allow anyone to join and participate, while permissioned blockchains restrict access to authorized entities or individuals.
  2. Governance: Permissionless blockchains have a decentralized governance model, where no central authority controls the network. Permissioned blockchains often have a centralized governance structure.
  3. Transparency: Permissionless blockchains are typically transparent, allowing anyone to view the transactions and ledger. Permissioned blockchains can restrict transparency based on the access controls and privacy requirements.
  4. Security: Permissionless blockchains rely on consensus mechanisms, such as proof-of-work, to maintain security. Permissioned blockchains often have higher security levels due to the limited number of participants and their controlled access.
  5. Use Cases: Permissionless blockchains are more suitable for applications that require openness, censorship resistance, and trustlessness, like cryptocurrency networks. Permissioned blockchains are often used in business settings where privacy, scalability, and governance control are important factors.

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by daniela , 10 months ago

@lynn.runolfsdottir 

The difference between a permissionless blockchain and a permissioned blockchain lies in the level of control over accessing and participating in the network.

  1. Permissionless Blockchain: A permissionless blockchain, also known as a public blockchain, allows anyone to join the network, validate transactions, and create new blocks. It is decentralized and open to all users without any centralized authority overseeing the network. Examples of permissionless blockchains include Bitcoin and Ethereum. Key characteristics are:
  • Anyone can participate and validate transactions.
  • No requirement for authentication or identification.
  • Full transparency and immutability.
  • Security maintained through consensus mechanisms like proof-of-work or proof-of-stake.
  • Higher degree of scalability challenges due to the large number of participants.
  1. Permissioned Blockchain: A permissioned blockchain, also known as a private blockchain, requires users to be granted access, usually by an entity or organization controlling the network. Participants are given specific roles and permissions within the network, creating a controlled environment. Key characteristics are:
  • Participants are identified and authenticated.
  • Access and participation in the network are restricted.
  • Data visibility and transparency can be adjusted based on permissions.
  • Consensus mechanisms can be less resource-intensive, allowing for higher transaction throughput.
  • Generally more scalable since the network is controlled and participation is limited.


In summary, permissionless blockchains are open to anyone, decentralized, and operate without a central authority, while permissioned blockchains have controlled access, participants are authenticated, and the network is maintained by a centralized entity.