While many executives and business owners recognise the need to include blockchain technology, they also need to carefully consider which form of blockchain best suits them and how to integrate it appropriately.
What is a permissionless blockchain?
In a permissionless or public blockchain, anyone can participate in the network, read the blockchain’s contents, and submit transactions. There is no central authority controlling access. Although the blockchain’s database is public, participants in permissionless blockchains maintain pseudonymity and can opt for encrypting their data and several other techniques for enhancing the privacy of their data.
eBook: The fallacy of private, permissioned blockchains
What is a permissioned blockchain?
In a permissioned or private blockchain, the owner (a centralised party) restricts access to a predefined group of participants who have been permitted to join the network. Participants are typically known entities, and they may have different levels of access and control depending on their role within the network.
Permissioned or permissionless blockchain, which is right for your business?
This was discussed in more detail in a panel at the recent London Blockchain Conference where Robert Kaluza (Billion Chief Operating Officer) and Tony Mugavero (RAD NFTV Chief Executive Officer) discussed the benefits and trade-offs of permissioned and permissionless blockchain and why they settled on the solutions they use in their businesses.
The Billon Group manages a permissioned blockchain network tailored for enterprise applications such as data exchange, tokenisation, and identity verification, as highlighted by Kaluza during the presentation. While most of its operations are centred in Europe, the company has collaborated with prominent entities including Microsoft and Phillip Morris.
One of the primary reasons behind the company’s preference for a permissioned blockchain is regulatory compliance. Kaluza said that if an organisation seeks to identify its users, track asset transfers, and verify the source of these assets, a permissioned blockchain can often be the preferred choice.
Mugavero offered a contrasting perspective, noting that permissionless blockchains, such as the BSV blockchain, offer users a network resistant to censorship and genuine ownership of their assets.
Even when using centralised exchanges, users retain the option to transfer their digital assets to alternative platforms, given that their Bitcoin is on a permissionless network where no central authority can revoke access.
Both panellists agreed on the importance of users retaining ownership and control over their data, irrespective of the network’s permission structure.
BSV blockchain is for everyone
With its massive scaling, micropayments, greater data capacity and reliably low fees, BSV is the best distributed data ledger for enterprise-grade applications and services. BSV is already being used to build applications for diverse industry sectors.
You can read more about the different use cases for the BSV blockchain in your business and the best ways to integrate it in more detail here.