What are the potential drawbacks of using permissioned blockchains in the cryptocurrency market?

3 answers

• Apr 30, 2022 · 3 years ago
  One potential drawback of using permissioned blockchains in the cryptocurrency market is the lack of decentralization. Unlike public blockchains, permissioned blockchains are controlled by a central authority or a consortium of entities. This centralized control can lead to concerns about censorship, manipulation, and a single point of failure. Additionally, permissioned blockchains may require participants to trust the central authority, which goes against the principles of decentralization and trustlessness that are core to cryptocurrencies.
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• Apr 30, 2022 · 3 years ago
  Another drawback is the potential for limited transparency. Permissioned blockchains may restrict access to certain information, making it difficult for participants to verify transactions and ensure the integrity of the network. This lack of transparency can undermine trust and hinder the adoption of permissioned blockchains in the cryptocurrency market.
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• Apr 30, 2022 · 3 years ago
  From BYDFi's perspective, one potential drawback of using permissioned blockchains in the cryptocurrency market is the limited participation. Permissioned blockchains often require participants to be approved or meet certain criteria, which can exclude individuals or organizations that do not meet the requirements. This limited participation can hinder the growth and inclusivity of the cryptocurrency market.
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