Permissioned VS Permissionless Blockchains Comparison

Written by - Deepak Prasad

Permissioned vs. Permissionless Blockchains

In this article, we will do a detailed comparison of permissioned vs. permissionless blockchains.

Blockchain technology has attracted many investors towards it since the release of the blockchain alongside bitcoin. Blockchain is now being used more quickly than cryptocurrency applications, with many others looking to use blockchain for other types of P2P value transfers, such as decentralized data storage and social media platforms.

The umbrella concept of blockchain technology is Distributed Ledger Technology (DLT), which covers the entire blockchain technology. The release of two fundamentally different blockchain models, permissioned and permissionless, which are broadly classified


Permissioned Blockchain

Permissioned blockchains, which are also known as private blockchains, can be imagined as a closed ecosystem that can be accessed by only an allowed user. After receiving approval from the central authority, the user can validate transactions and view data on the network. Companies, banks, and institutions that are willing to comply with regulations and concerned about their total control of data will be solved by a permissioned blockchain. Ripple is an example of a permissioned blockchain.


Characteristics Of Permissioned Blockchain

The characteristics of a permissioned blockchain include the following:

  • Diverse Decentralization: Permissioned blockchains can be decentralized to varying degrees. Permissioned blockchains can be either partially or completely centralized. Members of the blockchain often decide on the network's level of decentralization as well as the consensus methods to be used.
  • Non-Transparent: Permissioned blockchains don't provide transparency. In the case of privacy, the identity and data of an individual or user are protected using cryptography. The identity is only known to the centralized entity.
  • Governance: Permissioned blockchains are governed by the organization and have a decentralized nature with central control as well. The organization made the decision to include the validator to validate transactions.
  • Efficient: Permissioned blockchains are very efficient because of the speed and scalability of their transactions. Hackers cant target a single repository because the technology is more efficient.


Pros of Permissioned Blockchain

  • Decentralization can be marginal and allows various users to invest without any risk of centralized models.
  • The management of transaction verification is highly scalable because it uses only a few nodes.
  • It has strong security in terms of privacy because permission is needed for each and every transaction by the user.
  • The governance structure is used by permissioned blockchains.
  • Permissioned blockchain does not necessitate the participation of every node in the validation process.


Cons Of Permissioned Blockchain

  • Permissioned blockchain does not provide complete decentralization.
  • Transparency is low in permissioned blockchains.
  • Many permissioned blockchains are vulnerable to censorship and regulation.
  • It is less anonymous.
  • It also increases the risk of corruption because of the fewer participants.


Permissionless Blockchain

A permissionless blockchain is a fully decentralized ledger that is totally open to the public. The majority of cryptocurrencies are fully powered by permissionless blockchain networks. It does not require any permission to connect or interact with others by participating in the mining process. In simple terms, it is also called a public blockchain.

Permissionless blockchain refers to a user creating their own personal address with the help of blockchain networks by validating the transaction or sending the validated transaction to another user present on the networks. Bitcoin is an example of a permissionless blockchain.


Characteristics Of Permissionless Blockchain

  • Transparency: It is transparent, which allows the user to access all their information except private keys. Transparency is a much-needed term in the permissionless blockchain because every user is promised to have a secure network.
  • Decentralized: Permissionless blockchains are completely decentralized, which means that no one can change the protocols of a network or edit a ledger. This permissionless blockchain is totally based on the majority consensus protocol.
  • Tokens: The permissionless blockchain provides the user with monetary tokens depending upon the user requirements that they serve. These digital tokens are given to the user in order for them to join the network.The value of tokens can be increased or decreased as per the market's blockchain regulations.
  • Trustworthy: Permissionless blockchains are trustworthy because the user can trace and find the transactions readily available on the networks. The user can trust the permissionless blockchain more than the permissioned blockchain.
  • Highly Secure: The security parameters provide highly secure data on the networks over which a user can make the transaction more easily reachable on the available networks.


Pros of Permissionless Blockchain

  • Permissionless blockchains are totally open to the public.
  • It is more secure and trustworthy than the permissioned blockchain because the chances of malicious intent are at their minimum.
  • Permissionless blockchain technology can be used without creating any additional infrastructure.
  • It has a high degree of transparency for the betterment of the participants.
  • Permissionless blockchains are good to impel the users in the networks.


Cons of Permissionless Blockchain

  • The transaction speed is slow in the permissionless blockchain.
  • Permissionless blockchains are not energy-efficient, and validating the data requires high-performance machines.
  • A small number of nodes can be used for transaction validation, which attracted the hacker to attack the networks with 51% accuracy.
  • Permissionless blockchains have a limited number of transactions per second.
  • The user has less control over the information regarding blockchain networks.



Both blockchain and peer-to-peer (P2P) are from the same family of similar technologies that address different needs in the real world. Both have their own good and bad sides, which help the businesses in different ways depending on demand. Permissionless blockchains are open in nature, which allows everyone to join these networks. The consensus algorithm helps validate the transaction and pushes data to the ledger. It is also transparent, which allows the user to download their ledger on the system by doing offensive tasks associated with the public blockchain. It uses different consensus algorithms, such as proof of work (PoW), proof of stake (PoS), and others.

On the other hand, permissioned blockchain is completely the opposite of its competitor, permissionless blockchain. It provides private and secure networks that are not open to the public and require permission from the network administrator. The user must do a KYC verification for entry into the networks. Permissioned blockchain is truly cost-effective for businesses.


Further Reading

Blockchain Vs. Database
Top Blockchains


Deepak Prasad

He is the founder of GoLinuxCloud and brings over a decade of expertise in Linux, Python, Go, Laravel, DevOps, Kubernetes, Git, Shell scripting, OpenShift, AWS, Networking, and Security. With extensive experience, he excels in various domains, from development to DevOps, Networking, and Security, ensuring robust and efficient solutions for diverse projects. You can reach out to him on his LinkedIn profile or join on Facebook page.

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