Permissioned Ledgers: Restricted Access Blockchain

Permissioned Ledger is a ledger designed with restrictions, so that only people or organizations that need access are allowed to access it.

What is Permissioned Ledger?

Permissioned registry is an open version of distributed registry technology (DLT), where participants are known and they need to be authorization before participating in or confirming activity on the network. This property makes them different from public networks such as Bitcoin and the blockchain of an open network, which are available to all and do not require authorization. In the case of organizations or consortia needing sensitive private information far from the public domain, authorized registries are better suited for companies or consortia that need to have personal data in secret.

A permissive registry is different from a centralized database in the sense that its participants are diverse and it has no single point of failure. In centralized databases, all data is verified using secure cryptography and digitally verifiable signatures. Authorized registries may be based on other public networks, but differ significantly in design and execution.

However, such registries do not require the use of tokens and are highly productive. In addition, they provide businesses and corporations with the ability to share sensitive information in a secure, cost-effective, and confidential manner. Permitted and public registries are similar in terms of immutability, although the latter tends to be much more secure in this aspect.

The management of the authorised e-book mechanism is semi-centralised but requires the agreement of all authorised parties. These systems also differ in terms of decentralisation, transparency, anonymity, security and resistance to censorship. They also have legal and regulatory advantages over their unauthorised counterparts. Typical examples of authorised ledgers are R3, B3i and Hyperledger.

Related terms