How is a permissioned blockchain defined?

A permissioned blockchain is characterized by its restricted access and defined permissions for participants. This type of blockchain operates within a closed network where the participants are known and vetted, having specific rights to contribute to or interact with the blockchain. Such a structure is particularly beneficial for organizations that need to ensure privacy, compliance with regulatory requirements, or that want to maintain control over who can see and validate the data on the network.

In a permissioned blockchain, the functionalities of reading, writing, and validating transactions are limited to authorized entities, which enhances security and allows for more efficient governance compared to public blockchains. This type of blockchain differs from public ones, where anyone can join, participate, and validate transactions without prior authorization.

The focus on restricted access enables customization of rules and mechanisms within the network, making it ideal for businesses and entities that require a structured approach to data management while still leveraging blockchain technology. Therefore, the definition of a permissioned blockchain as one with restricted access and permissions for participants accurately reflects its key attributes.