As the name implies, a permissioned blockchain network requires that members have permission to join, to get a copy of the ledger, and to transact with others.
Permissioned blockchain = accountability
This means those transacting on the blockchain are known (and not anonymous). So there is accountability for their actions taken on the blockchain – just as you’d want in any other business transaction.
Permissioned networks are also known for their ability to protect the privacy of transactions. In Hyperledger Fabric, transactions can be set up using channels, allowing for one-to-one, one-to-many, or many-to-many private blockchain interactions.
Blockchain use cases that don’t require permission often rely on time-consuming proof-of-work or proof-of-stake consensus algorithms. In contrast, permissioned blockchains use more efficient consensus algorithms. This means they can scale and have higher performance with more transactions per second.
Read: Does Hyperledger Fabric perform at scale?
Finally, permissioned blockchains designed for business have more security controls built in, with fully-encrypted blocks and fault tolerance that keep data secure even in the presence of bad or careless actors.