Permissioned

Commonly used term to describe blockchain projects where nodes must be appointed by an administrator prior to gaining access to the network. Those wishing to use the network who have not been granted access by the administrator. Must conduct their transactions via a permissioned node.

Nodes typically operate under guidelines imposed by the administrator. Specifying how they conduct transactions and who they can conduct transactions with.

Critical aspects of permissioned networks include:

• Efficient Performance – Versus public blockchains due to access restrictions leading to fewer nodes
• Censorship – Access to the network can be denied arbitrarily by the administrator
• Ambiguity – Full records of permissioned blockchains are not available publicly
• Identity – Permissioned nodes must adhere to the KYC requirements of the administrator when granting user access.

XRP is an example of a permissioned network. Access to the XRP network requires permissioning from Ripple, XRPs administrator. Ripple authorizes nodes for the network, typically large financial institutions. These institutions route transactions, like remittances, through the network on behalf of users.

Further Reading Permissioned

Permissioned blockchain frameworks in the industry: A comparison