# Permissioned Blockchain
A permissioned blockchain is a type of distributed ledger technology (DLT) that requires an individual or entity to be granted access before they can participate in the network. Unlike public blockchains, such as Bitcoin and Ethereum, which allow anyone to join without any restrictions, permissioned blockchains are private networks that require explicit authorization from administrators before granting users access. This makes them more secure than open systems since malicious actors cannot gain access without approval.
Permissioned blockchains have become increasingly popular with businesses due to their ability to maintain privacy while allowing for faster transaction speeds and improved scalability compared to public networks. They also offer better control over user permissions, making it easier for organizations to set up rules about who can view certain data or take part in transactions on the network. Additionally, these types of blockchains provide increased transparency as all participants must be known entities who have been granted permission by the administrator(s).
The most common use cases for permissioned blockchains include financial services and banking applications, healthcare records management systems, supply chain tracking solutions and smart contracts platforms. These applications rely on the security provided by restricted access points combined with tamper-proof ledgers that allow real-time monitoring of assets across multiple stakeholders in a trustless environment.
In conclusion, permissioned blockchain networks offer many advantages over public DLTs: improved security through limited user permissions; higher throughput rates thanks to smaller consensus groups; greater scalability due to fewer nodes required; additional privacy features; and enhanced transparency when dealing with trusted parties only. Despite this potential though, there is still much debate around whether these closed systems should replace existing models altogether—or if they should simply supplement them instead—and further research needs to be done in order for us truly understand their impact going forward
