A Compact Guide to Permissioned Blockchain App Development

Posted by MuBlockchain on February 5th, 2021

In this blog, we will firstly focus on the distinction between permissioned and permissionless blockchains. Then, we explore the increasing importance of permissioned blockchain app development for enterprises.


There has been a steep rise in the popularity of blockchain technology in the past few years. Both public and private organizations are implementing various blockchain ventures. Blockchain is an evolving technology. It is still in its early stages. Thus, there are misunderstandings in the blockchain industry as well. One of the fundamental confusions is choosing the right type of blockchain technology, either permissioned or public blockchains.

Understanding Permissioned and Permissionless Blockchains

Before using a permissioned blockchain, a licensed blockchain requires prior approval. On the other hand, a permissionless blockchain enables anyone to participate in the framework. Although the two systems can sound identical, we cannot use them for the same things. In various cases, one of the disadvantages of crypto is that no one has power over it. People might not be keen on using a licensed cryptocurrency. For instance, Maersk would not want to store its sensitive information related to shipping and logistics on a blockchain without permission.

What are the Similarities

These are both distributed ledgers. It implies that several copies of the same data would be stored in various locations and linked through some network. Theoretically, all of these blockchains are permanent. It means that that the information they record, no entity can change or delete it. And if someone tries to gain charge, the blocks connected with cryptographic hashes also change. Both make use of structures for consensus. It means they have a way to agree with business rules or transaction verification.

Considerations for Opting the Right Method

When it comes to data access and control permissions, public blockchains provide far greater access to data but less control over who can see and access it. For addressing data privacy and security-related challenges, public blockchain use methods like encryption and hashing.

Access to private blockchain deployments focuses on permissions. Also, data chunks remain separated as per needs cases. Participants store and access data for transactions only for which they have authority. Permissioned blockchains benefit when system efficiency is crucial because there are fewer participants to come to a consensus.

Today, public blockchains are more interoperable than private ones, the WEF argues. That’s theoretically real. At the same time, private blockchains strive to establish common standards, it states.

Our experts argue that those shared standards are industry-focused. It can trump the public blockchain’s generic interoperability. In practice, the creation of common standards often depends on enterprise blockchain solutions. These standards can be more useful than the implementation of the blockchain itself.

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