Permissioned v. Permissionless Blockchain 10XTS
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Learn the difference between Permissionless and Permissioned Blockchain implementations.
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Permissioned v. Permissionless Blockchain 10XTS
- 1. Which is appropriate for your business need, and why? 10XTS Website: https://10xts.com XDEX Website: https://xdex.io General Inquiries: info@10xts.com PERMISSIONLESS VS. PERMISSIONED
- 4. Network Participation - Defined Permissionless Blockchain • Everyone with an account (wallet) has read access • Everyone has the same rights for asset creation and conducting transactions • Assets are solely controlled by the owning account Permissioned Blockchain • Read access is granted, in part or in whole • Asset creation and transaction rights can be restricted wholly or by classes of assets and transactions • Asset control can be delegated to other accounts
- 5. Network Participation - Observations Permissionless • Benefits • Easy to administer as everyone has same capabilities • Members feel as equal parts of the community • Issues • Many Use Cases require different permissions • Sometimes actions must be imposed (I.e. freezing an account by court order, etc.) • Recommendation • Use where you are trying to build community and equal access and public reading is essential, e.g. product reviews but... • Have a governance mechanism in place to manage violations of community policy and law through voting (or use permissioned) • Personally, I would avoid it Permissioned • Benefits • Different permissions/roles applicable to larger number of Use Cases • Better able to manage data visibility and security to meet laws, regulations, and privacy concerns • Issues • Members may not feel wide-spread ownership of network • More complex system as permissions must be considered an all aspects of solution • Requires additional governance for pubic blockchains to identify who can administer • Recommendation • Unless adopting a permission / role-based solution is a major barrier to entry, use it
- 6. Permissionless Use Case: Product Reviews • Everyone can read the reviews of a product • Everyone can register for an account to post a product review • Everyone control’s their own reviews, including the right to edit the review and delete it.
- 7. Permissioned Use Case: Rx Feedback • Patients can read their own feedback on a prescribe medication. • The prescribing physician can read the feedback from their patients. • The pharmaceutical staff can read the feedback for their medications. • No one can edit or delete the feedback. Patients cannot change their feedback but can amend. • Physicians can add related medical notes. These notes are visible to the patient and physician but only accessible by pharmaceutical staff if both authorize it. • Only prescribing physicians, patients on the prescription, and
- 10. Blockchain Production - Defined Permissionless Blockchain • Anyone can add a node to participate • Nodes (generally) run on the open Internet • All code and configuration required to run are available publicly Permissioned Blockchain • Participating nodes must be explicitly added to block production • Public networks such as Ethereum and Bitshares may allow people to add nodes but they act as read only copies • Nodes can be on publicly facing servers or private networks • Code and configuration availability may be public or private
- 11. Blockchain Production - Observations Permissionless • Benefits • Trust engendered through decentralization • Control of block production is diversified over many providers • Issues • Slow performance due to need for incentivized consensus such as proof of work • Decentralization is based on happenstance and can be violated by anyone willing to spin up enough nodes • Recommendation • Avoid using - lower transaction volumes, environmental concerns, and vulnerable to 51% attack • Also, harder to ensure layered security architecture Permissioned • Benefits • Trust through governance plus stake in network success • Can ensure diversification by how block providers are selected and avoid concentration • Issues • Greater network complexity as nodes generally must be connected point to point • Requires recruiting many providers willing to incur upfront costs for decentralization • Recommendation • For consortiums, require each member to run a node to share the load • Establish templates for creating appropriate security models and interconnection
- 14. Public & Private Blockchain - Defined Public Blockchain • All data is readable with or without an account (wallet) • Anyone can run a distributed ledger processing node on the blockchain network • Anyone can create an account for access Private Blockchain • Data visibility is based on access to the network, with or without an account (wallet) • Only authorized parties can run a distributed ledger processing node on the blockchain network • Account creation is based on access to the network
- 15. Public & Private Blockchain - Observations Public • Benefits • Easy to administer as everyone has same access • Network has greater transparency • Issues • Easier to compromise as all serves are Internet accessible • Many laws regulations do not allow certain types of data (PII, Health, Financial) to be stored on Internet accessible machines • Recommendation • Use when data security is not a primary issue and members want a truly open blockchain • Personally, I would avoid it Private • Benefits • Harder to attack because all nodes and activity combine standard network security with blockchain capabilities • Easier to stop other types of fraudulent activity • Issues • Greater expenses due to additional computing resources required for security • More complex to operate • Recommendation • Use unless a a public network is a deal- breaker or data security is not an issue
- 17. Choosing Your Path Public or Private? Block Production: Permissioned or Permissionless? Network Participants: Permissioned or Permissionless?
- 18. John Bentley, II Founder & Chief Technology Officer john@10xts.com https://linkedin.com/in/johnbentleyii Twitter: @johnbentleyii • 10XTS Website: https://10xts.com • General Inquiries: info@10xts.com About
Hinweis der Redaktion
- According to Gartner, Blockchain is moving from “Peak of Inflated Expectations” into the “Trough of Disillusionment” in their Garter Hype Cycle for 2018 - https://www.ledgerinsights.com/gartner-blockchain-hype-cycle/. This has emboldened critics, yielding posts such as this…
- We live in a world of open spaces and secured locations, where we wait with everyone in a lobby but got to an exam room by ourselves, with an open store front but back office for managing inventory and operations. In other words, we live in a world where things require no explicit permission to access while others have different levels of restrictions. Blockchain was largely introduced as a very open technology and network for interaction. The software for running the blockchain network was open source, and free to download. Anyone who wanted to make the investment in computing time and network access was welcome to join the blockchain network and participate in producing and validating blocks, earning micropayments in the process. Also, anyone who wanted to download a wallet and generate a login was welcome to join begin transacting with other blockchain holders, no permission or even identification was required. And all transactions where open for the world to see, obfuscated by the use of complicated identities. And just as in our current world, there is room for completely open blockchain networks. However, some situations require more restriction on who is allowed to do what. For example, some transactions are restricted by laws and regulations while other information, such as medical data, goes even further with an innate need for privacy. To support this, a new generation of blockchain technology was introduced, introducing the age-old concept of permissions. These new blockchains were dubbed “permissioned” with the original, open networks such as Bitcoin being labeled “permissionless” in contrast.
- While blockchains are often wholly identified as permissionless (Bitcoin) or permissioned (Hyperledger), there are actually two facets to Blockchain permissions. One facet of Blockchain permissions are based on what people can do on the Blockchain. For example, in a public park you don’t have to have a ticket to get into the park. Access to the park is permissionless as is all of the play equipment. In contrast, an amusement park may have a variety of permissions required based on tickets, size and health restrictions. Moreover, people have permissions based on roles. In a playground, anyone can ride or operate the playground equipment. In an amusement park, only employees can operate amusements and even within the employees there may be different permissions.
- How can blockchain improve product reviews? (1) Verified identity for “wallets”. (2) Products transferred as purchased to wallet via n oracle function.
- Note that US medical regulations require any comments about adverse reactions with drugs be reported to the manufacturer. Therefore, being able to provide information to pharmaceutical companies is required for compliance.
- Group Participation Key Questions - Are there multiple roles to be played as part of the solution? Do different people have different access rights? Is there a need for audit level access that provides a view of all data for security or compliance reasons? Are there one way transactions? e.g Transactions that one party can initiate and a second party cannot refuse?
- The other facet of Blockchain permissions is block production. Think of a swap meet versus a shopping mall. At a swap meet, anyone can join the marketplace as a seller and the people involved can change day to day, week to week. In a shopping mall, a store must be leased and malls and shopping centers can be very particular about which businesses occupy their shopping centers.
- Group Participation Key Questions - Are there data security concerns about who has copies of data? Can you maintain a large enough network?
- The other aspect of Blockchain is Public vs Private Blockchain. This is another tool for managing the blockchain a network and can change the nature of things quickly. For example, if you take a permissionless blockchain but run it on a closed network, a new node for block production can be added if someone has access to the network. So, accessibility can be used to change the nature of a blockchain.
- Discuss laws and regulations around data and attack vectors
- Group Participation Key Questions - Are there data security concerns about who has copies of data for block production? Can anyone join as a participant?
- Can the data be stored on Internet facing machines? Do you care where the data is stored – legal jurisdiction and confidence in block production node operator? What roles / permission sets are required to enable the network? What are the different valid scopes of data visibility?