How are you? Hope so everyone would be safe and sound just like me as I am also safe Alhamdulillah....
Permissionless Blockchain is decentralized network that permits any person to show their participation in the blockchain without any need of permission of any kind. Every person is allowed at this type of blockchain to join it to validate the transactions and to show their contribution for the security and consensus mechanism of the blockchain in a system so this is a type of blockchain which promotes inclusivity and it is very instrumental in enabling the innovative applications like cryptocurrency decentralized finance and many more also....
When I talk about some of the key features of this type of blockchain then it is consensus mechanism of permission less blockchain which is very unique. When I talk about word consensus then it is basically the process in which all the participants present in a blockchain or network agree upon the state of blockchain and for the validation of the transactions so when I talk about type of mechanism through which the consensus is achieved in this type of blockchain then these mechanism are proof of work proof of stake or could be other also.
Bitcoin use group of work mechanism in which minors are required to work in the form of solving complex mathematical equations by the use of large nodes for the validation of transactions and adding new blocks in the blockchain or network so there is a higher amount of computational power which is required to do this and in this way network remain more secure and more resistance towards any kind of malicious activity and attacks.
Ethereum is also blockchain which works on the consensus mechanism of proof of stake in which validators are selected on the basis of number of tokens which they hold. Validators are choosed at this blockchain so that they maybe able to create new blocks at the blockchain and validate transaction of other people based upon and depending upon their staked tokens. Proof of stake is more energy efficient mechanism then the mechanism of proof of work.
In permission less blockchain there is an opportunity for everyone to become a miner or validator and it all depends upon that how much they are meeting the specific criteria and requirement of the consensus protocol. These are the kind of Democratic approaches which ensures that there should not be any kind of centralization in the blockchain so in this way it makes the blockchain more resilient.
In permissionless blockchain there is a more security and transparency promotion because all transactions are recorded at the blockchain or network and all these becomes visible to everyone in the network and in this way it cause blockchain to become more integral and trustworthy in front of anyone so participants and users at the blockchain are also allowed in this way to track the flow of funds.
When I talk about some of the challenges that are related to permissionless Blockchain then first of all there is scalability because when number of participants and transaction increase with the passage of time by the addition of more and more users to the blockchain than efficiency and scalability of network reduce because it takes more time to validate the transaction with more users then to validate a little amount of transactions so it leads to longer confirmation time for transactions.
When I talk about energy consumption then I think according to my research there is more energy consumption with the consensus mechanisms like proof of work because there is more amount of computational power required for mining. But it is important to not that there are also some efforts which are own going for the development of more energy efficient consensus mechanisms like proof of stake is an example.
We can also consider security when talking about this type of blockchain because we all know that these are designed to be very secure so that there may not any kind of strange and malicious activity at the platform but due to open s for everyone their could be some of the malicious persons that could enter into the blockchain and attempt to manipulate the consensus mechanism and they can also launch 51% attacks as I have already made a post about it that what are these.
That was all about some of the important information about this type of blockchain and before this I have talked about permissioned blockchain so today I thought about this type of blockchain and I tried my best to highlight some of the most important points related to it by explaining its basics and benefits and drawbacks and hopefully the topic would be clearer to all of you now.
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