How Does a Permissioned Chain Handle Data Privacy Compared to a Public Chain?
A permissioned chain offers superior data privacy compared to a public chain. Public chains expose all transaction data to everyone.
Permissioned chains use access control lists and often employ privacy-enhancing technologies like zero-knowledge proofs or private channels (e.g. Hyperledger Fabric channels).
This allows organizations to share necessary data with authorized parties only, keeping sensitive financial or client data confidential while still benefiting from a shared, immutable ledger.
Glossar
Data Privacy
Transparency ⎊ Data privacy on public blockchains presents a paradox, as all transaction data is transparently recorded on an immutable ledger for public verification.
Privacy-Enhancing
Anonymity ⎊ Within cryptocurrency derivatives, options trading, and financial derivatives, anonymity transcends simple obfuscation; it represents a strategic layer of operational security and market resilience.
Access Control Lists
Security ⎊ Digital ledger environments utilize specific protocols to manage entry points and data visibility.
Privacy
Anonymity ⎊ Privacy within cryptocurrency and derivatives contexts centers on obscuring the link between transaction origins and identifiable entities, a critical distinction from traditional finance’s reliance on Know Your Customer (KYC) protocols.