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    Pros and Cons of Permissioned Blockchain Pros

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    Alexandrew charle Rimocal
    The document discusses permissioned and permissionless blockchains, comparing their key characteristics like access controls, identity verification, governance models, and consensus approaches. Permissioned blockchains allow restricted participation and customized permissions while permissionless blockchains enable fully open access and censorship resistance.

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    Pros and Cons of Permissioned Blockchain Pros

    Uploaded by

    Alexandrew charle Rimocal
    14 views2 pages
    The document discusses permissioned and permissionless blockchains, comparing their key characteristics like access controls, identity verification, governance models, and consensus approaches. Permissioned blockchains allow restricted participation and customized permissions while permissionless blockchains enable fully open access and censorship resistance.

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    11

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    The document discusses permissioned and permissionless blockchains, comparing their key characteristics like access controls, identity verification, governance models, and consensus approaches. Permissioned blockchains allow restricted participation and customized permissions while permissionless blockchains enable fully open access and censorship resistance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views2 pages

    Pros and Cons of Permissioned Blockchain Pros

    Uploaded by

    Alexandrew charle Rimocal
    The document discusses permissioned and permissionless blockchains, comparing their key characteristics like access controls, identity verification, governance models, and consensus approaches. Permissioned blockchains allow restricted participation and customized permissions while permissionless blockchains enable fully open access and censorship resistance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    o Partially Decentralized- While permissioned blockchains are distributed across multiple

    peers or nodes like other blockchains, the network participants are limited to approved
    entities rather than anonymous nodes.
    o Identity Verification- In permissioned blockchains, real-world identities can be associated
    with user addresses and transactions through identity verification processes.
    o Customized Permissions- Administrators in permissioned blockchains can define granular
    access policies and permissions for different types of members and roles.
    o Flexible Consensus Models- Permissioned blockchains can utilize faster and more
    energy-efficient consensus models like PBFT and voting-based schemes rather than
    resource-intensive proof-of-work.

    Pros and Cons of Permissioned Blockchain


    Pros
     Increased Privacy and Security
     Customizability
     Efficiency Gains
     Regulatory Compliance
     Centralized Governance
    Cons
     Limited Transparency
     Higher Corruption Risks
     Censorship Potential
     Centralization Risks
    Permissionless blockchain- are public blockchain networks that impose no restrictions on
    access or participation. Some of the salient features of a permissionless blockchain include:
    o Fully Open Access- In contrast to permissioned blockchains, anyone globally can join,
    submit transactions, and participate in consensus mechanisms like mining in
    permissionless blockchains without needing approval.
    o Full Transparency- All transactions are publicly visible to every node in a default
    permissionless blockchain like Bitcoin
    o Pseudo-Anonymity- Users interact through cryptographic key pairs rather than real-world
    identities.
    o Censorship Resistance- With no central authority and distributed consensus mechanisms
    like proof-of-work, no single entity can tamper with transaction histories or censor activity
    on a permissionless blockchain like Bitcoin.
    o Incentivized Participation- Tokens are used to incentivize nodes to verify transactions
    and secure the network through mining and staking.

    Pros and Cons of Permissionless Blockchain


    Pros
     Censorship Resistance
     Transparency
     Security Resilience
     Immutable Records
     Accessibility
    Cons
     Performance Limitations
     Energy Intensive
     Minimal Privacy
     Potential for Crime

    I. CONSENSUS
    All parties agree to network verifiable transactions.

    Two Approaches of Consensus


    o Centralized
    o Decentralized

    Consensus Mechanisms
    o The process by which a group of peers – or nodes – on a network determine which
    blockchain transactions are valid and which are not.
    o Are used to verify transactions and maintain the security of the underlying blockchain.

    Different types of Consensus Mechanisms


    o Proof of Work (PoW)
    - Miners essentially compete against one another to solve extremely complex
    computational puzzles using high-powered computers.
    o Proof of Stake (PoS)

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