SOME OF THE DISADVANTAGES OF THE PERMISSIONED BLOCKCHAIN TECHNOLOGY.

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Good day to you all, I hope you are all doing okay the topic and title of today's post is "some of the significant disadvantages of the permissioned blockchain" and as usual before I proceed I would like to give a brief introduction to this post and I would start by saying that the permissioned blockchain network is a variant of the traditional and originally known blockchain technology and network, but unlike the traditional blockchain network that operates with restricted access and decentralized control.

It is often managed and controlled by a centralized authority or combination of the users and participants of the network, although the permissioned blockchain network offers and facilitates certain functions and services that offers some significant advantages and benefits such as enhanced privacy and scalability, it also offers and comes with several disadvantages that warrant the careful consideration of it's participants.

Therefore I invite you all to give me your undivided attention as I will be highlighting these significant disadvantages as well as discussing them briefly I hope you enjoy reading this post.

RISK OF CENTRALIZATION

Unlike the traditional blockchain technology and network which is tightly tailored to maintain its decentralized nature, the permissioned blockchain is tailored in a way that it poses risk of centralization and this is basically one of the many different significant disadvantages of the adoption of the permissioned blockchain and this is mainly because of the fact that the permissioned blockchain is managed by a central authority or group of the networks users and participants.

The reason why centralization is such a risk and significant disadvantage is mainly because of the fact that it undermines and erodes the traditional feature and nature of decentralization that the blockchain technology is known for and in the process eliminating the trustless nature of the blockchain technology and network as well, seeing as it mainly concentrates control and the decision making power and authority in the hands of a few parties.

Additionally, diminishing the decentralization of the blockchain network and introducing centralization to the blockchain network poses and introduces further risks of network security, censorship resistance, and immutability owing to the fact that a centralized authority will most likely abuse their power or act in self interest and as a result compromising the integrity and neutrality of the block chain network.

REGULATORY CONCERNS

Another significant disadvantage of the permissioned blockchain technology is that it is most likely to face further or more regulatory opposition and compliance challenges than the traditional blockchain network and its different based networks, particularly in networks, industries and sectors that are subject to very strict regulatory oversight, such as the digital financial sector, the healthcare industry, and government based industries.

The centralized and designated control nature of the permissioned blockchain network is what will most likely raise these concerns and increase regulatory oppositions seeing as it deviates from the more acceptable principles of decentralization and transparency, the permissioned block chain will most likely struggle to meet up with regulatory requirements related to data privacy, security seeing as centralized authorities bear responsibility for ensuring compliance with the different regulatory standards.

DECREASED TRANSPARENCY

Last but not the least, another disadvantage of adopting the Permissioned blockchain technology is that it has the tendency to often undermine and sacrifice a very key and significant feature in the blockchain network and that is transparency for the purpose of facilitating privacy and confidentiality this is mainly because the permissioned blockchain grants permission and allows access to transactional data therefore making it so that data visibility is to be controlled by designated or centralized authorities.

This might mean that the permissioned blockchain network tends to offer greater privacy and protections for sensitive information and data however, this also means that since they control data visibility, that they are also able to limit and decrease transparency and as a result the external parties and participants may be unable to verify transactions or validate the integrity of the blockchain immutable ledger for storing and recording transactional details.

Finally the reduction of transparency in the blockchain network basically undermines and diminishes the trustworthiness and accountability of the permissioned blockchain networks seeing as the participants and stakeholders may lack visibility and unrestricted access into network operations and the decision making processes.

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CONCLUSION

In conclusion, the permissioned blockchain no doubt offers certain advantages such as enhanced privacy and scalability however, they also come with disadvantages that must be carefully considered and that is why I have written on these disadvantages mainly reduced transparency, regulatory concerns, and potential security vulnerabilities, addressing these disadvantages ensures that permissioned blockchain provide solutions that meet the needs and requirements of users while preserving the core principles of the traditional blockchain technology.