Proprietary Network

Definition ∞ A proprietary network is a closed system or platform whose technology, protocols, and access are controlled and owned by a single entity or a restricted group. Unlike open, decentralized networks, participation and development on a proprietary network are subject to the owner’s specific rules and permissions. These networks often prioritize centralized control, performance, and tailored functionalities. They typically serve specific business needs or a controlled user base.
Context ∞ In the digital asset landscape, proprietary networks exist alongside public blockchains, particularly in enterprise blockchain solutions or permissioned ledger systems. While public blockchains emphasize decentralization and openness, proprietary networks are often favored by institutions for their control over data privacy, transaction speed, and regulatory compliance. News sometimes discusses the trade-offs between these network types, especially concerning their suitability for different digital asset applications.