There are multiple characteristics of permissioned blockchains including
the following:
· Varying decentralization →
If you thought that decentralization can be done in only one way, then you are
wrong. you can achieve decentralization through various ways such as keeping
the interest of the owner but still ensuring a few basic features that match
with blockchain technology. We can think of it as decentralization levels. In
the case of a public network, we have full decentralization as it matches the
philosophy of the network itself. Now, not every entity can do full
decentralization and has to adapt to a lighter version
of decentralization where a central authority approves who joins and who
doesn’t. The decentralization used by permissioned blockchains is also more
flexible as private networks are free to use consensus algorithms of their
choice.
· Governance → Permissioned
networks are governed by the organization. They appoint members for the
business network and make sure that most of the network has decentralized
nature with some central control as well. In a permissioned network, the
organization can decide to include the validator node(s) to validate
transactions.
· Customizability →Organizations
can customize the networks based on their requirements.
· Efficient → Permissioned
blockchains are efficient when it comes to transaction speed and scalability
· Anonymity and transparency → Private blockchains are known for their transparency and by definition do not need to be one. However, they can opt
to be transparent by ensuring that there is trust within the organization. When
it comes to privacy, each individual identity is protected using cryptography.
Only the centralized entity knows about the individual as they need to do a KYC
when they join the network.