Who may participate.
WHAT A PUBLIC NETWORK IS
Open to anyone to join, read, transact and validate.
WHAT IT PROVIDES
Censorship resistance No gatekeeper Verifiability by anyone
WHAT IT COSTS
Lower throughput Transaction fees Public visibility of activity Governance that is slow and contested
WHAT A PRIVATE NETWORK IS
Operated by one organisation, with controlled participation.
WHAT A PERMISSIONED NETWORK IS
Shared between known participants, who are identified and authorised.
WHAT THAT SUITS
Consortiums where parties do not fully trust each other but are identified.
WHAT EXAMPLES LOOK LIKE
Trade finance between banks Supply chain records between known suppliers Interbank settlement
WHAT PERMISSIONED NETWORKS PROVIDE
Higher throughput Privacy between participants Governance that can act No transaction fees
WHAT THEY LOSE
The property that made public networks distinctive.
WHAT THAT MEANS
If all participants are known and a governance body exists, a shared database with good access control may serve equally.
WHAT TO ESTABLISH
Why a ledger is needed rather than a database.
WHAT THE HONEST ANSWER FREQUENTLY IS
It is not.
