PHASE III – PRIVATE

PERMISSIONED DLT

A private permissioned Blockchain is often termed as a “Distributed

ledger technology”, or DLT, rather than Blockchain. As the name

indicates, such an ecosystem is built with a private network where

only limited and trusted parties can build their nodes and share the

data with the privacy and security factors intact. But, why was there

a need of such an ecosystem, as we already have public

Blockchains like Ethereum running in the production? Before

jumping to different private permissioned DLTs, let’s first understand

why we need such networks, and also, what are the similarities and

differences with public Blockchains. Please refer to Table Phase III

for a comparison of the limitations of public blockchains and the

advantages of private permissioned DLT over them for the enterprise

use cases, as follows:

Limitations of Public

Blockchains

Advantages of Private

Permissioned DLTs

Privacy

of

Data

Public Blockchains would be

ideal for certain use cases

such as crypto trading, e-

Auction, ICOs etc., where the

data shared on such networks

are visible to all and, at the

same time, the identity of the

participants does not matter.

However, many use cases in

banking, FinTech, Insurance,

Healthcare,

Aviation,

e-

Governance etc., would opt for

more privacy where they can

share

the

data

only

with

selected nodes not opting to

make it global.

Unlike public Blockchains, a

private

permissioned

DLT

allows only selected parties to

participate in the sharing of

data with each other.

Security Zones: Many private

permissioned DLTs also use

security zones (i.e., a mini DLT

within a DLT) or private peer-

to-peer

data

sharing

with

messaging techniques, so that

the parties can share the data

with a few among them with

even additional privacy and

security.