Permissioned Blockchain Application

How to Build Permissioned Blockchain Applications?

Do you know what is the coolest thing in automated data management? It is Permissioned Blockchain development.

So what is that makes permissioned blockchains score over un permissioned blockchains? Let us see down below how to build permissioned blockchain applications!

What are Permissioned Blockchain networks?

We all know that blockchains are a digital ledger that is programmed to record anything of value. Blockchains are considered to be the brainchild of Satoshi Nakamoto, who created them in order to solve the double spending problems that have been associated with cryptocurrency. All the nodes in the network can access the nodes and data stored inside the nodes.

Typically, a blockchain network validates a transaction by mutual consensus, thereby serving the original purpose for which it was created.

Over recent times, there have been speculations over the privacy of the data stored in the blockchain, since initially there was no mechanism in place to restrict the addition of new members into the blockchain. Such blockchains were named un-permissioned blockchains. The privacy concerns thus raised across the blockchain community lead to the creation of permissioned blockchains.

There are alternatively called Public Blockchains and Private Blockchains respectively and an active discussion on Public VS Private Blockchain is very active on every blockchain forum on the internet.

Read more about Public vs private Blockchain

An additional layer of access control was built over the blockchain chain nodes and the participants in the network has the ability to restrict the addition of new members , thereby keeping a check on the consensus mechanism of the blockchain network. Permissioned blockchain development allows the network to entrust a particular group of members in the network with the express authority to validate the transaction blocks.

A well conceived permissioned blockchain networks also enables the participants in the network to restrict the creation of smart contracts and transact on the blockchain network. Due to these profound reasons, permissioned blockchain platform development has gained prominence recently.

Benefits of Permissioned Blockchain over Un-permissioned Blockchain

  • Well defined Governance
  • Unpermissioned blockchain networks are public spaces and no clear direction is seen on the rulebook to be followed while being in the network. Hence, there is no sense of governance over the members. In the case of a permissioned blockchain platform, there is a group of members who are authorized to allow or deny the entry of new members into the network. Hence, this can help reduce the entry of riff-raff and enhance the overall performance of the network.

  • Cost efficient
  • It is extremely difficult to control spam in case of a public blockchain. Moreover, a more well-knit security system should be put in place so that the aspect of unrestricted entry can pertain to some extent. This would eventually lead to greater power costs and hence, a hike in the overall cost.

  • Security
  • As we pointed out earlier, the access into a permissioned blockchain networks are restricted by a group of members who authorizes who will enter the network and who will not, hence it will more secure when compared to un permissioned networks.

  • Trust
  • Trust is a very vague benefit in this scenario. Let me explain further. You deposit all your hard earned money in the bank and go home with a sense of security that the money is safe, whereas, actually, the safety of the money depends greatly on the security system the bank has out in place and the commercial stability of the bank. Similarly, the permissioned blockchain development relies on the authorization of the entry of members and restrictions put forth in this regard. However, we can definitely vouch for the argument that it is definitely more trustworthy than un permissioned blockchains.

    Applications of Permissioned Blockchains

    1. Finance
      • ICO
      • Hedge Funds
      • Payments and settlements
      • Prediction markets
      • Insurance
      • International Money Transfer
    2. Smart Contracts
    3. Real Estate
    4. Digital Identity/Verification
    5. Voting
    6. Heathcare


    The above article on how to build Permissioned blockchain platforms looks very promising in the time to come. The restricted entry would definitely bind the security of the network and enhance the overall performance of the network. Do you wish to build your own permissioned blockchain platforms with CryptoSoftwares. Contact us today!

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