The original concept of the blockchain was a public distributed ledger open to all who chose to access it, and forms the basis of how Bitcoin and Ethereum transactions are recorded and stored. A “permissioned” (or private) blockchain is like a club, you have to be a member to access its facilities. Both classes of blockchain are valid, you can select one or the other depending on what the purpose of the blockchain will be.
How they are Similar
There is a lot of commonality between public and permissioned blockchains:
They are decentralized.
Each participant has a copy of the ledger which is updated each time a transaction is added.
The update is validated via consensus; the majority of participants agree to verify the transaction.
The blockchain is immutable: once written a transaction cannot be amended or deleted.
Where the Permissioned Blockchain Differs
A permissioned blockchain is essentially the same as a public blockchain; it is the network that filters who can access the permissioned blockchain. There are different models for granting permission, such as a group approval, or a specific authority
for a regulatory case.
When it comes to verifying transactions, the “proof of stake” or a similar algorithm is used, unlike Bitcoin’s “proof of work”, which is so complex that it takes 10 minutes or more to process. There are quite a few other factors to take into consideration, such as whether the ability to do compliance checks is in place. This is where we can help, guiding you through the complexities and the mechanisms needed to drive a successful permissioned blockchain.
Time to take the Plunge
Many companies are discovering the power of a private blockchain, and with the introduction of Hyperledger Fabric as a framework for getting a permissioned blockchain up and running with the minimum of fuss, you can join the club.
There are quite a few considerations around how to introduce a permissioned blockchain into your workplace and its
processes. Feel free to Contact Us for some expert assistance.