what is permissioned block chain?-Definition of all finance terms


Permissioned blockchains are a distributed network that prohibits consensus participation by users or actors. The only allowed recipient can be a part of that network or system. Even it also restricted users from creating smart contracts.

Brief Explanation of Permissioned blockchains

In this distributed blockchain-based network, every user or customer has to be an approved identity before a part of this system and build a consensus to participate in a growing blockchain.

Several of their customers, who maintain private distributed blockchains for other organizations and enterprises, use this model.

One example of a permission blockchain is RIPPLE, where startup recipients must approve their identities to validate transactions. Even the recipient also has to build their own nodes around the globe to execute operations in different locations.

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