Permissioned vs Permissionless - Reading Assignment

Blockchain Business Course
#141

Permissionless vs. Permissioned Blockchains – Reading Assignment

1. What benefits does blockchain provide in business-to-business collaborations?

• Provides trust
• Provides security/resistant to tampering
• Instant access to relevant and authentic information
• Access to historical data of all transactions
*Cost effective

2. What property of a blockchain does the name “Permissionless” refer to?

• It is public.
• Driven by network consensus
• No permission is required to:
 Run a node, and receive incentives
 Add to the blockchain
 Verify and authenticate past transactions

3. What are 3 examples of permissionless blockchains?

• Bitcoin
• Etherium
• EOS

4. Who are allowed to join a permissioned blockchain network?

Only participants that are authorized.

5. Why do you think permissioned blockchain networks are preferred by many companies?

• Requires permission
• Control over data – what can and cannot be viewed and by whom
• Governance
*Privacy
*Cost effective

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#142
  • Governance,
  • Transparency and Anonymity is controlled,
  • Control over who is in the network,
  • Transactions are secure,
  • No need for third party.

  1. It refers to the fact that there no central governance and its public, so there is no need for permission to join the network.

  • Bitcoin
  • Ethereum
  • EOS

  1. Users authorized by the Admin or Admins.

  • More control and governance of the network.
  • Limit data for security purposes
  • No Need to have economic incentive associated with network.
  • More Transparency for an industry
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#143
  1. What benefits do blockchain provide in business-to-business collaborations?
    Blockchain networks allow for increased trust between parties, and instant access to relevant, authentic information. This is so thanks to the fact that blockchains provide a historical record of all transactions, alongside the means to record these entries.
  2. What property of a blockchain does the name “Permissionless” refer to?
    Allowing anyone to get involved on the network.
  3. What are 3 examples of permissionless blockchains?
    Bitcoin, Ethereum, Litecoin.
  4. Who are allowed to join a permissioned blockchain network?
    Only approved people or computer entities have the possibility of running nodes on the network, validating transaction blocks, issuing transactions, executing smart contracts, or reading the transaction history.
  5. Why do you think permissioned blockchain networks are preferred by many companies?
    They have very different dynamics, thus allowing the central governing entity or consortium of entities to decide on all problems pertaining to how the network is created, its protocols and what users can do.
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#144
  1. Business-to-business collaboration provide a varying level of transparency, anonymity and the degree of decentralization
  2. “Permissionless” refers to the public nature of a blockchain and the ability of the network constituents to perform any transactions
  3. BTC, ETH, BCH
  4. In permissioned blockchain network only certain nodes can join the network (decided by an authority)
  5. The governance and privacy of the permissioned blockchain is what attracts companies
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#145
  1. Blockchains can provide a trustless or near trustless environment to business-business colaberations. This is due to the transparency and immutability that can be offered if it is a truely decentralised network. This would allow for companies to transact and share information with eachother in a way that can remove the need for intermediaries and therefore can reduce costs significantly which involve the reassurance that each company is adhering to their side of the bargain. This reduced cost can provide a competitive advantage compared to other collaborations from other companies.

The 2nd benefit is that even if it is a permissioned network, companies will be able to quickly and efficiently share information that each company holds without the need for requesting the information and liaising with the relevant individuals from each company. This means that companies can become more efficient when collaborating, reducing costs and speeding up the development of the project. Additionally the quick access to information can also strengthen the collaberation as the combined knowledge of each company can allow for an advantage over competitors when each company has access to the whole pool of data. It results in better management for the collaberation as project leaders or decison makers can make these decisions far more effectively.

Another benefit is that information is distributed and therefore each company does not have to store the information regarding the project on a centralised internal server. One company may not want the other to store all the information and so each company may have their own records. If all records are distributed and therefore exactly the same, there will be no confusion over the different aspects of the collaberation where records may differ.

  1. Permissionless refers to what individuals/companies/organisations or entities are able to be a user of the blockchain, this includes the ability to use the network to transact and share or recieve information or value as well as the ability to contribute to the network by running a node/mining node that can validate transactions and new blocks appended to the chain. Permissionless means that anyone is able to use the blockchain in either of these aspects. It therefore also refers to the level of decentralisation within the network, being fully decentralised.

  2. Examples of a permissionless blockchain: Ethereum, Bitcoin, EOS, Litecoin.

4)With a permissioned blockchain only individuals/companies/organisations or entities that the creator of the blockchain has allowed to join the network are able to participate. This includes the control of who is permissioned to transact on the network as well as act as a node to validate newly appended blocks. In some cases blockchains can be Semi-permissionless such as XRP where anyone is able to transact on the chain however permission is required to be a node and validate said transactions.

  1. Permissioned blockchains are preferred by many companies because often they will want to limit the number of individuals who have access to information/transactions on the network as well as limit the people who are able to validate these transactions. This is because permissioned blockchains are a trusted environment - compared to permissionless which are trustless, meaning that there is still a level of trust needed between users. If untrustworthy individuals were on the network they would be able to either validate incorrect information with their nodes, or be able to access sensitive information or information that belongs to the collaberating companies and misuse it.

Often companies will not want competitors having access to this information, in order to keep an advantage over the market. Additonally if consumers were to have access to all the information about a project it may affect the companies reputation or their product/services sell-ability because consumers would have far more sovereignty due to access to information as to the cost of production, profits, materials used and also how the product may work and what other customers have complained about.

Going one step further, anyone would be able to see any information about the company that is stored on the blockchain, such as how the company is run - the structure of the company, its employees, supply chains etc. It would therefore be easy to imitate the business model and take market share.

summarising it is all about control, security and private information that means permissioned blockchains are often prefered by many companies.

1 Like
#146
  1. What benefits do blockchain provide in business-to-business collaborations?
    B2B - blockchain networks allow for increased trust between parties, and instant access to relevant, authentic information.
  2. What property of a blockchain does the name “Permissionless” refer to?
    Anyone can join the network, issue transactions, validate transactions and has access to all information including past transactions and how transactions are added into the block. All users can run a node and generally there is a user-incentivizing token to mine.
  3. What are 3 examples of permissionless blockchains?
    Bitcoin - Ethereum - Litecoin.
  4. Who are allowed to join a permission-ed blockchain network?
    Authorised personnel that have been granted access.
  5. Why do you think permission-ed blockchain networks are preferred by many companies?
    Permission-ed blockchains are preferred by companies because it gives them more control and governance power over the data contained in the blockchain.
1 Like
#147
  1. What benefits do blockchain provide in business-to-business collaborations?
    Transparency, security, immutability
  2. What property of a blockchain does the name “Permissionless” refer to?
    Access to the network is granted to everybody
  3. What are 3 examples of permissionless blockchains?
    Bitcoin, Ethererum, EOS
  4. Who are allowed to join a permissioned blockchain network?
    This is a governance question, so it is defined by the “central” instance of the network
  5. Why do you think permissioned blockchain networks are preferred by many companies?
    Because they don’t want to share all information with the public
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#148
  1. What benefits do blockchain provide in business-to-business collaborations?

Transparency, accounting costs reduction, anti-corruption

  1. What property of a blockchain does the name “Permissionless” refer to?

Properties of Permissionless blockchain are decentralization, , Anonymity, Transparency,digital Asset

  1. What are 3 examples of permissionless blockchains?
    Btc, Eth, Eos

  2. Who are allowed to join a permissioned blockchain network?
    Those ho are invited and or approved. These are generally individuals, organization or between companies in a consortium.

  3. Why do you think permissioned blockchain networks are preferred by many companies?
    So the company can have control.

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#149
  1. What benefits do blockchain provide in business-to-business collaborations?
  • Censorship resistant
  • Eliminates third parties
  • Anti-corruption
  • Transparent (available to everyone)
  1. What property of a blockchain does the name “Permissionless” refer to?

They allow every user to be part of the blockchain with no permissions required. They can then create a personal address and begin interacting with the network, by submitting transactions, and hence adding entries to the ledger.

  1. What are 3 examples of permissionless blockchains?

BTC, ETH, EOS

  1. Who are allowed to join a permissioned blockchain network?

Only people given access by the blockchain owner can access to the network.

  1. Why do you think permissioned blockchain networks are preferred by many companies?

They can offer varying levels of decentralization while keeping some level of control centrally through permissions, depending on the need of the company. Also, they ensure transparency within the company, are cost effective and allow for proper governance mechanisms.

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#150

What benefits do blockchain provide in business-to-business collaborations?
Eliminates the need for third parties, transactions are easier and more cost effective, all transactions can easily be verified.

What property of a blockchain does the name “Permissionless” refer to?
The fact that it is a public block chain and can be utilised by anyone.

What are 3 examples of permissionless blockchains?
Bitcoin, Ethereum and EOS.

Who are allowed to join a permissioned blockchain network?
Whoever it is that’s agreed upon, ie. Administrators, employees etc…

Why do you think permissioned blockchain networks are preferred by many companies?
Because they can control who has access.

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#151
  1. Less need for trust, fast access to information
  2. That u do not need permission to access the information or to become a node in the network
  3. bitcoin, ethereum, eos
  4. That is decided by the ones owning the specific bc network
  5. Because the don’t want their information to be shared with anyone, like competing companies for example.
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#152

  1. What benefits do blockchain provide in business-to-business collaborations?
    To record transactions and share information with one another as all members of the network have access to the same information via the ledger.

  2. What property of a blockchain does the name “Permissionless” refer to?
    It refers to the property of being public. No permission is required to create or read.

  3. What are 3 examples of permissionless blockchains?
    Bitcoin, Ethereum, EOS

  4. Who are allowed to join a permissioned blockchain network?
    Autorized/trusted users only.

  5. Why do you think permissioned blockchain networks are preferred by many companies?
    – Governance : Control of the data determined by members of the business network.
    – Degree of decentralization can be chosen.
    – Degree of transparency and anonymity can be chosen.

1 Like
#153

  1. It provides greater security and takes away the need for relying on third parties. It increases trust between parties and makes authentication of interactions faster and more efficient. Combined with IoT, automation, AI, robotics and machine learning it can truly revolutionize the B2B business infrastructure.

  2. Public blockchains.

  3. Ethereum, Bitcoin, EOS.

  4. The members that the permissioned blockchain’s governing entity has permitted to join.

  5. Permissioned blockchains give companies much more flexibility to decide what users can do within the blockchain, and who can access what information specifically. If companies used public blockchains, there might be a concern that sensitive company information or secrets would leak.

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#154
  1. Trust, Security, Instant access to relevant and authentic information
  2. The main characteristics associated with Permissionless blockchain are decentralization, anonymity, transparency and the presence of a digital asset whose value increases as the blockchain grows bigger.
  3. BTC, ETH, EOS
  4. Only authorized entities
  5. Permissioned Blockchains are easier to scale and update as the governance is decided by members of the business network and guarantee that only a limited number of entities interact with your sensitive information
1 Like
#155
  1. Increased trust between parties, instant access to relevant and authentic information, capacity to see all historical transactions.
  2. It refers to the ability of consensus decisioning. No one party can make changes without controling 51% or more of the network hashing power.
  3. Bitcoin, Ethereum, Monero.
  4. Entities that have been authorized by the central owners of the network.
  5. The owners will have more control over decisions and data, effectively owning the governance of the blockchain, increase privacy and lower costs.
1 Like
#156

  1. What benefits do blockchain provide in business-to-business collaborations?
    Business can ensure the transactions are properly accounted. In traditional financial systems built in SQL transaction can be deleted. To remove third party complexity.

  2. What property of a blockchain does the name “Permissionless” refer to?
    Anyone can create a client to read and update the blockchain. No permission is required

  3. What are 3 examples of permissionless blockchains? Bitcoin, Dogecoin,& Digibyte.

  4. Who are allowed to join a permissioned blockchain network?
    Only parties with valid credentials.

  5. Why do you think permissioned blockchain networks are preferred by many companies? To maintain the control of data in blockchain.

1 Like
#157

What benefits do blockchain provide in business-to-business collaborations?
Blockchain technology provides an immutable record of data or transactions that removes the need for implicit trust between businesses. rather the trust is forged in the protocol of the blockchain.

What property of a blockchain does the name “Permissionless” refer to?
This means that anyone can access the blockchain. There is not central authority that controls the permissions for who can and can not access.

What are 3 examples of permissionless blockchains?
Bitcoin, Ehtereum, Litecoin

Who are allowed to join a permissioned blockchain network?
Only people who have been approved by the central authority or community governing the blockchain.

Why do you think permissioned blockchain networks are preferred by many companies?
This allows businesses to retain control over the data stored in the blockchain and who can access that data. At the same time the business may also gain from the benefits of blockchain technology by knowing that the data stored cannot be tampered by extermal or unapproved sources.

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#158

1- transparency, security, access to historical data for all transaction, removes the third parties.
2- no permission required, incentives are important, trust no one.
3- BTC,ETH,EOS
4- Only participants that are authorized.
5- control by the company(data), require permission, and governance.

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#159

1
The introduction of a trustless layer: the business can check the inputs of interest without the need of a third party certificating that operation is genuine.

2
Anyone can create a new “user” ie an address and a node on the bc.

3
Bitcoin, Ethereum, Basic Attention Token.

4
Only authorized coworkers of the business setting up the bc.

5
Mainly for privacy reasons. They ever want to protect as much as possible the information about the operations between suppliers, goods, clients, transactions. Also companies want to set or vary the decentralization and the form of governance.

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#160
  • What benefits do blockchain provide in business-to-business collaborations?
    Ability for transparency and removal of third party thus reduced costs (potentially)
  • What property of a blockchain does the name “Permissionless” refer to?
    No need to trust anyone as protocol takes care of that
  • What are 3 examples of permissionless blockchains?
    Bitcoin, ethereum, eos
  • Who are allowed to join a permissioned blockchain network?
    Those that administration gives access to
  • Why do you think permissioned blockchain networks are preferred by many companies?
    Because they can protect trade secrets and other data they don’t want to share with public and can give specific permissions as to who can do/see what
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