Blockchain Networks Explained: Permissioned vs. Permissionless & More

There are two primary categories of blockchain networks based on their permission structure:

Permissionless Blockchains

Permissionless blockchains are open, decentralized networks accessible to anyone. These blockchains offer:

• Decentralization: All nodes have equal access and rights.
• Transparency: Full transaction history is visible to all participants.
• Security: Large-scale node distribution enhances network security.

However, permissionless blockchains also have some drawbacks:

• Slower transaction speeds due to the large number of nodes involved in validation.
• High energy consumption, particularly for Proof-of-Work consensus mechanisms.

Learn more about permissionless blockchains: What is a Permissioned Blockchain?

Permissioned Blockchains

Permissioned blockchains, in contrast, require user authentication and authorization to participate. They offer:

• Controlled Access: An access control layer manages user permissions.
• Identity Verification: Participants must verify their identities to join.
• Privacy: Enhanced privacy controls for sensitive data.
• Efficiency: Faster transaction processing due to a smaller number of nodes.

For a deeper dive into permissioned blockchains: Permissioned Blockchains

Permission-Based Network Types

Within these two broad categories, several specific types of blockchain networks exist:

Private Blockchains

Private blockchains are permissioned networks controlled by a single organization. They provide:

• Centralized Control: The organization has complete authority over the network.
• Restricted Access: Only verified participants within the organization can join.
• Data Confidentiality: High level of privacy for sensitive information.
• Flexibility: The organization can modify or delete entries if needed.

Explore private blockchains further: Private vs Public vs Permissioned Blockchain

Public Blockchains

Public blockchains are permissionless networks open to everyone. They are characterized by:

• Open Access: Anyone can participate without restrictions.
• Transparency: All transactions are publicly viewable.
• Decentralized Governance: No single entity controls the network.

Learn more about public blockchains: What are the 4 different types of blockchain technology?

Hybrid Blockchains

Hybrid blockchains combine elements of both private and public blockchains. They offer:

• Flexible Access Control: Organizations can choose which data to keep private and which to make public.
• Customizable Permissions: Different users can have varying levels of access.
• Balance of Privacy and Transparency: Offers a middle ground between private and public networks.

Discover more about hybrid blockchains: What are the 4 different types of blockchain technology?

Consortium Blockchains

Consortium blockchains are permissioned networks managed by a group of organizations. They feature:

• Shared Governance: Multiple organizations collaborate to oversee the network.
• Controlled Access: Participants are pre-selected and have specific permissions.
• Semi-Decentralization: Offers a balance between centralized control and distributed governance.

Read more about consortium blockchains: What are the 4 different types of blockchain technology?

Comparing Blockchain Network Types

The table below provides a concise comparison of the different blockchain network types:

For further information on blockchain types, you can explore these resources:

• Types of Blockchain
• Types of Blockchain Technology: A Complete Overview
• Public, Private, and Permissioned Blockchains Compared
• Blockchain Types