What is a Permissioned Blockchain?

What is a Permissioned Blockchain?


What is a Permissioned Blockchain? GLOSSARY OF TERMS

Permissioned Blockchain


The exclusive blockchain (Permissioned Blockchain) is open to the general public, but the processing of data in it is controlled by certain companies or individuals whose identities are identified and have the appropriate clearance.

For example, enterprises can selectively set limits when configuring networks and control the actions of various participants in specific roles. For example, Ripple, one of the largest cryptocurrencies, supports permission-based member roles.

The Permissioned Blockchain has several important advantages:

  1. Despite the high level of protection, the blockchain is vulnerable to various types of attacks (for example, a majority attack, which can be carried out by a group of people with more than 50% of all computing power). The permissioned model greatly reduces the risk of an attack, since it assumes a limited list of trusted nodes (nodes).
  2. If an organization has a small number of machining centers, then it can better control them, and thus increase the overall level of security.
  3. Exclusive blockchains are highly adaptable, transparent and flexible.

Contrary to popular belief, an exclusive blockchain is not always closed. There are several levels of data access, for example:

  • reading transactions from the blockchain, but with certain restrictions (for example, a participant can only have access to transactions that directly affect him);
  • offering transactions for inclusion in the blockchain;
  • creating new blocks of transactions and adding blocks to the blockchain.

Exclusive networks can operate very quickly with low transaction confirmation times and generally allow a higher amount of data to be stored in the record than public networks.


They are not as extensive and global as the public domains, and they are not designed to create a common infrastructure for the entire industry – in this case, complete access control is paramount.


Exclusive blockchain-based systems can serve as the basis for the creation of reliable financial databases or temporarily ordered registries of documents. In particular, the use of this type of blockchain is suitable for storing the history of the interaction of elements within a single structure: contracts with employees, production accounting and other similar information.

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