Permissioned dApp
1 min read
Pronunciation
[per-mish-uhnd dee-ap]
Analogy
A permissioned dApp is like a private club's online portal. Only club members (authorized users) who have a special key or membership ID (permission) can log in and use its services (dApp functionalities), whereas a public website (permissionless dApp) is open to everyone.
Definition
A decentralized application (dApp) where access to some or all of its functionalities is restricted to a specific set of authorized users or entities. This contrasts with permissionless dApps, which are open for anyone to use.
Key Points Intro
Permissioned dApps restrict access to their features to authorized participants, often used in enterprise or consortium contexts.
Key Points
Access and usage are controlled by an authorization mechanism.
Users typically need to be whitelisted or possess specific credentials.
Often built on permissioned or private blockchains, but can exist on public chains with access control layers.
Suitable for applications requiring privacy, compliance, or control over participation.
Example
A consortium of banks might develop a permissioned dApp for interbank settlements on a private blockchain. Only participating banks, after undergoing a know-your-customer (KYC) process and being granted access credentials, can use the dApp to initiate and settle transactions amongst themselves.
Technical Deep Dive
Permissioning in dApps can be implemented at various levels:
1. **Network Layer:** Using a permissioned blockchain where only authorized nodes can validate transactions or access the network.
2. **Smart Contract Layer:** Smart contracts can include access control lists (ACLs), role-based access control (RBAC), or require specific tokens or credentials (e.g., verifiable credentials) to execute certain functions.
3. **Application Layer:** A frontend interface might restrict access based on user authentication, even if the underlying smart contracts are technically public.
Identity management solutions are often crucial for permissioned dApps.
Security Warning
The security of a permissioned dApp relies heavily on the robustness of its access control mechanisms and identity management system. If these are compromised, unauthorized access could occur. The centralization aspect of permissioning authorities can also be a point of failure or control.
Caveat
Permissioned dApps trade off some degree of decentralization and censorship resistance for increased control, privacy, and regulatory compliance. The 'permissioning' entity or process can introduce centralization.
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