What are Permissioned Blockchains?

· Permissioned blockchains are a complete opposite of permissionless blockchains. You can think of permissioned blockchain on the lines of private blockchain as they are closed.

· There are multiple reasons to purposely close permissioned blockchains. The biggest difference between permissionless and permissioned blockchain is that not everyone can join the blockchain. It requires special permission from the network administrator or the owner to join the network.

· So, why do we need permissioned blockchains? The sole purpose is to create a blockchain network that is cut from the public. Not all blockchains need to be public and organizations simply cannot afford to make their processes or data public. This is where permissioned blockchain is too useful even when it slights shifts from the core feature of blockchain, i.e. decentralization.

· Banks, companies, or other institutions can use permissioned blockchain that need to secure their data and have no problem complying with the regulations.

· One of the prime examples of permissioned blockchain is Ripple(XRP).