What is a Public-Permissioned Blockchain? 

Blockchain technology has revolutionised how we think about digital transactions and data management. Among the various types of blockchain systems available today, one model that has gained significant attention is the public-permissioned blockchain. This hybrid model combines the best of both public and private blockchains, offering enhanced security, control, and transparency. But what exactly is a public-permissioned blockchain, and why does it matter? This article will explore its key features, benefits, and real-world applications.

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Understanding the Hybrid Blockchain Model

To understand the concept of a public-permissioned blockchain, let’s first break it down. A public blockchain is open to everyone, meaning that anyone can join the network, validate transactions, and participate in the consensus process. Bitcoin and Ethereum are prime examples of public blockchains. On the other hand, a permissioned blockchain restricts access to specific participants who must be authorised to join. Permissioned blockchains are commonly used in enterprise settings where security and control are paramount.

A public-permissioned blockchain brings together the openness of a public blockchain and the control of a permissioned blockchain. In this system, while the network remains accessible to the public for reading or viewing data, only certain authorised participants can validate transactions and participate in decision-making processes. This unique combination allows for greater transparency while maintaining strong control over who can alter the blockchain.

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Key Features of Public-Permissioned Blockchain

One of the most appealing aspects of a public-permissioned blockchain is its ability to strike a balance between security and transparency. For instance, since only authorised participants can validate transactions, the risk of malicious activity is significantly reduced. Yet, the openness of the public layer ensures that data can be viewed and audited by anyone, promoting accountability.

Moreover, public-permissioned blockchains typically implement smart contracts, which are self-executing agreements coded directly onto the blockchain. These contracts ensure that transactions or events occur automatically when predefined conditions are met, reducing the need for intermediaries and enhancing efficiency.

Additionally, because the public-permissioned blockchain model is more scalable than purely public blockchains, it can handle a larger volume of transactions without compromising on speed or security.

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Differences Between Public-Permissioned and Other Blockchains

You might be wondering how a public-permissioned blockchain differs from other blockchain models. First, unlike public blockchains, public-permissioned blockchains limit the number of participants who can verify transactions. This results in faster transaction processing times compared to public blockchains, which often suffer from slow processing due to the vast number of participants.

In contrast to private blockchains, public-permissioned blockchains allow for greater transparency since anyone can view the data stored on the chain. This makes it an excellent solution for industries where public accountability is crucial, such as supply chain management or government services.

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Real-World Applications

Public-permissioned blockchains have a wide range of applications across various industries. For example, in supply chain management, they ensure that goods can be tracked from their origin to the final consumer, providing transparency at every stage. Companies can grant permission to certain stakeholders, such as manufacturers and retailers, to update information while allowing the public to view the supply chain in real-time.

In the financial sector, public-permissioned blockchains can be used for cross-border payments and tokenised assets, ensuring transparency and reducing fraud while granting financial institutions control over transaction validation. Government agencies, too, are beginning to explore public-permissioned blockchains to improve digital identity management and public services, where transparency and data integrity are crucial.

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A public-permissioned blockchain offers the best of both worlds: the transparency and accountability of public blockchains combined with the control and security of private blockchains. As industries across the globe continue to adopt blockchain technology, this hybrid model stands out for its scalability, security, and practical applications. Whether you are a business, government agency, or individual, understanding the power and potential of public-permissioned blockchains is key to staying ahead in the ever-evolving digital landscape.

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Masverse is leveraging the power of public-permissioned blockchain, MasChain, to bring businesses and government organisations onto the blockchain. This innovative approach enables efficient and secure operations while fostering greater accountability. Whether for supply chain transparency, digital identity, or cross-border payments, MasChain is paving the way for a more connected and transparent digital future in Malaysia. For more information on how you can integrate a public-permissioned blockchain for your organisation, please click here to contact us.

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Disclaimer: This article is not intended to provide investment advice and should not be considered as such. Any claims made within do not constitute financial guidance. Masverse Sdn Bhd is not liable for any losses incurred by individuals relying on the information in this article. Always conduct your own research before making financial decisions.

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