Permissioned Distributed Ledger

Definition ∞ A permissioned distributed ledger is a type of blockchain network where participation, such as reading, writing, or validating transactions, requires prior authorization. Access is restricted to known and approved entities, providing a controlled environment. This structure offers enhanced privacy, governance, and accountability compared to public, permissionless ledgers. It is often favored for enterprise applications.
Context ∞ Permissioned distributed ledgers are being actively explored by financial institutions for interbank settlements, supply chain finance, and tokenized asset management. Their controlled access and robust governance capabilities align well with regulatory requirements and institutional preferences for data security. This technology is a key component in building new, efficient financial market infrastructures.