What Is The Difference Between A Permissioned And Permissionless Blockchain?

A blockchain is a digital ledger of all cryptocurrency transactions. It is constantly growing as "completed" blocks are added to it with a new set of recordings. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. Bitcoin nodes use the block chain to differentiate legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. Permissioned blockchains are those where only authorized parties can access the network and participate in the consensus process. Permissionless blockchains, on the other hand, are open networks where anyone can join and participate. The most notable difference between these two types of blockchains is who is allowed to participate in the network. In a permissioned blockchain, only certain users are allowed to access the network and participate in the consensus process. In a permissionless blockchain, anyone can join and participate. Another key difference is how the consensus process works. In a permissioned blockchain, consensus is typically achieved through a voting process. The users who are allowed to participate in the network are also typically the ones who are allowed to vote on which transactions are added to the blockchain. In a permissionless blockchain, consensus is typically achieved through a process called mining. In mining, users compete to solve a mathematical problem in order to add a block of transactions to the blockchain. The first user to solve the problem is rewarded with cryptocurrency. The debate between permissioned and permissionless blockchains is one that is ongoing. There are pros and cons to both approaches. Permissioned blockchains are typically more efficient because they don’t require mining. They are also more secure because only authorized parties can access the network. Permissionless blockchains are typically more decentralized because anyone can join and participate. They are also more secure because it is more difficult for bad actors to gain control of the network. Ultimately, the decision of which type of blockchain to use depends on the specific use case. If security and efficiency are the main goals, then a permissioned blockchain may be the best option. If decentralization and security are the main goals, then a permissionless blockchain may be the best option.