Permissioned ledger

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A permissioned ledger, often referred to as a private or consortium blockchain, is a type of distributed ledger technology (DLT) where access is restricted to a specific group of authorized participants. Unlike public ledgers (like Bitcoin or Ethereum) where anyone can join, view transactions, and participate in the consensus process, permissioned ledgers require explicit approval for users to read, write, or validate data.

The identities of participants in a permissioned ledger are typically known, bringing a level of accountability and trust that may be necessary for enterprise or inter-organizational applications. This controlled environment allows for greater privacy, scalability, and often faster transaction speeds compared to public blockchains because the number of validating nodes is limited and their trustworthiness is pre-vetted. Governance rules and consensus mechanisms can be tailored to the specific needs of the participating organizations. Permissioned ledgers are commonly used in industries like finance, supply chain management, and healthcare, where data sensitivity and regulatory compliance are paramount, and collaboration is needed among a defined set of actors.

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