What is Permission Blockchain?

Normally, in bitcoin, which is the most important example of blockchain technology, there is no need to get permission from any authority to join the network or make transactions.. Anyone can join and leave the network whenever they want.. However, lately, we have started to hear about a new version of the “permissioned blockchain” technology, as well as the “public blockchain” technology we know.. So what is a permissioned blockchain that even big companies like IBM [1] are interested in?

What is it?

Unlike open blockchain, permissioned blockchain technology requires permission from a user who is considered an authority to join the network.. In this way, anyone from the community cannot see everyone’s transaction or the amount of money in their account, only those with permission can see it.. Even this access control mechanism can be diversified according to predetermined rules.. For example, with these rules, who can transact, who can see the transactions, who can add blocks to the blockchain, etc..

What are the benefits?

Permissioned blockchain technology has two most important benefits over open blockchain technology.. The first is to protect privacy and the second is to prevent energy waste.. As we said above, thanks to the access control mechanism, who can access the transactions can be determined by the rules.. In this way, the privacy of users can be protected by allowing only authorized persons to see the transactions.. Second, one of the biggest criticisms of bitcoin, and thus of open blockchain technology, is that the proof-of-work algorithm consumes too much energy.. However, whether to use a proof-of-work algorithm in permissioned blockchain technology is optional.. Only the user with permission to add new blocks can add new blocks to the blockchain, so no proof-of-work algorithm is needed.

Is it safe?

For security in permissioned blockchain technology, all cryptographic algorithms used in open blockchain technology ( Except for proof of work) can be used, but only the access control mechanism limits what users can do.

Apart from that, just like in open blockchain, all users synchronize the blockchain and thus unity is ensured.

Critics

Besides its ability to protect privacy or prevent energy waste, permissioned blockchain destroys the features of open blockchain technology such as trusting no one, everyone being able to join or leave. It is especially criticized for these aspects and is seen by many experts as no different from a database.. Andreas Antonopoulos gives a very good example on this subject in a speech [2].. He likens the invention of the motor car to removing the engine and replacing it with a horse because it consumes too much energy.. I also agree with the criticism on this issue, and I think that permissioned blockchain technology consists of an effort not to lose the power in the hands of large companies.

[1]-https://www.ibm.com/blockchain/hyperledger.html#s- 2

[2]-https://www.youtube.com/watch?v=haKVaGHKQJM

Homni: The Impact That Lasts Forever – The ICO Continues. Last Day 26 December –