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What Is the Primary Risk of Using a Permissioned Blockchain for Cryptocurrency Trading?

The primary risk is centralization, where a governing consortium can modify data or exclude participants, creating a single point of failure.
Greeks.Live30.10.25

What Is the Primary Risk of Using a Permissioned Blockchain for Cryptocurrency Trading?

The primary risk is centralization and the lack of true immutability or censorship resistance, which are core tenets of public blockchains. The governing consortium has the power to reverse transactions, modify data, or exclude participants, posing a single point of failure.

This level of control undermines the decentralized ethos that attracts many to cryptocurrency. While efficient, the reliance on a few trusted parties introduces a significant operational and governance risk.

This can lead to market manipulation concerns.

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