What means permissionless?

A permissionless blockchain like Electra Protocol, is an open network available to everyone to participate in the consensus process that use theĀ  blockchain to validate transactions and data. A permissionless blockchain is fully decentralized across unknown parties. Other names of a permissionless blockchain is trustless blockchain or public blockchain.

The key characteristics of a permissionless blockchain are:

  • open source development;
  • full transparency of transactions;
  • anonymity, with some exceptions;
  • lack of a central authority; and
  • heavy use of tokens and other digital assets as incentives to participate.

Permissioned blockchains

In contrast, permissioned blockchains are closed networks in which previously designated parties, sometimes members of a consortium, interact and participate in consensus and data validation.

The key characteristics of permissioned blockchains are:

  • development by private entities;
  • controlled transparency based on the goals of participating organizations;
  • lack of anonymity; and
  • lack of a central authority, but a private group authorizes decisions.

Permissionless have a variety of benefits over permissioned blockchains, which are important to many market participants:

  • A high degree of transparency, which speeds reconciliation across unknown parties
  • Resistance to censorship, thanks to broad accessibility and participation across locations and nationalities
  • Broader decentralization that extends access across more network participants than in permissioned blockchains
  • Strong security; attackers can’t target a single repository and it is difficult to corrupt 51% of the network to disrupt consensus mechanisms.

Electra Protocol is a permissionless blockchain, which is secure and fully decentralized. The goal of Electra Protocol is to build a future-proof blockchain ecosystems for payments and beyond.