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A permissioned blockchain known as a "enterprise blockchain" can be used to scale up commercial procedures like tracking supplies or settling international payments.
Enterprise blockchains differ in the following areas:
- Level of decentralization
Private blockchains are closed networks accessible only to users the central authority has authorised. Private blockchains, in contrast to public blockchains, depend on a central node to verify transactions. Who can participate in the system and what data is allowed may also be decided by this node.
Blockchain networks that integrate private and public chains have hybrid properties. The end result is a solution that fixes the issues that both blockchain systems have while keeping their advantages.
On a hybrid blockchain, data integrity is higher because the owner cannot change data without other nodes' consent. Additionally, hybrid networks are more secure due to the distributed consensus among all network nodes.
Consortium blockchains are similar to public blockchains in that they have a decentralised, peer-to-peer structure. Every member of the network has a copy of the distributed ledger, and no one entity has exclusive control over the system.
A vast majority of enterprise blockchains are "permissioned blockchains," meaning companies have direct control over them. For instance, they can block transactions that do not comply with their rules, or if law enforcement asks them to do so.
Some of the main characteristics of enterprise blockchains include:
- Accountability: Each node in the network – which each holds a copy of the transaction history – is known and can be held accountable for its actions. For example, often enterprise blockchains are shared by a few companies or financial entities in a cooperative format.
- Permissioned: Only users who have permission can use the blockchain. The network owner(s) can choose who's allowed to use it and who's not.
- Mutable: If all entities managing the network agree, the data can be changed.
- Scalability: Because enterprise blockchains are typically not as decentralized as Bitcoin, they can easily support more transactions at the base layer.