Understanding a Permissioned Ledger
A permissioned ledger is a variant of distributed ledger technology (DLT) characterized by closed-source operations, where participants are known and authorization is required for network usage and activity validation.
Unlike public networks such as Bitcoin and Ethereum, which are open to all and do not require prior authorization, permissioned ledgers are designed for organizations or consortiums that require privileged private information not intended for the public domain.
Advantages and Distinctions
Permissioned ledgers are distinct from centralized databases because they have diverse participants and lack a single point of failure.
All data on these ledgers is verifiable using secure cryptography and digitally verifiable signatures.
While permissioned ledgers can be based on public networks, they differ significantly in design and execution.
These ledgers are typically tokenless and offer high performance.
They enable businesses and corporations to share sensitive information securely, cost-effectively, and confidentially.
Permissioned and public ledgers share the characteristic of immutability, although public ledgers generally provide stronger guarantees in this regard.
Permissioned Ledger Governance
The governance mechanism of permissioned ledgers is semi-centralized, requiring agreement among all authorized parties involved.
Additionally, permissioned ledgers offer more legal and regulatory advantages than permissionless counterparts.