In a recent video, a speaker highlighted the fundamental differences between open blockchain systems and those tailored for institutional use, shedding light on their implications for accessibility and compliance. According to the official information, these distinctions play a crucial role in shaping the future of blockchain technology.
Open Blockchain Networks
Open blockchain networks, often referred to as permissionless, allow anyone to join and participate without needing prior approval. This inclusivity fosters a broader range of participation and innovation within the ecosystem.
Permissioned Blockchain Systems
On the other hand, permissioned blockchain systems, which are commonly utilized for enterprise payments, restrict access to known entities only. This model is designed to meet the stringent regulatory and compliance requirements that financial institutions face.
Benefits of Permissioned Networks
In these permissioned networks, participating organizations maintain direct relationships and transact through shared ledgers. This setup not only accelerates transaction settlement times but also ensures adherence to established governance standards. This makes it a suitable choice for banks and other regulated entities.
Recently, the Pi Network concluded its annual hackathon, showcasing a strong commitment to innovation in blockchain technology. For more details on the event and its outcomes, you can read more here.
