KYC

In certain use cases, the

identity verification becomes a

major requirement, and hence,

provision should be there for

all the nodes to be onboarded

only

after

proper

KYC

verification.

Most

private

permissioned

DLTs have an in-built KYC

process which adds parties

only after stringent background

verification which is ideal for

banks, fintech, and many other

verticals.

Transaction

Fees

Most public Blockchains are

dependent on their inherent

cryptocurrencies

associated

with

the

fees

for

each

transaction.

Because

the

cryptocurrencies

are

too

volatile and their prices keep

on fluctuating too much, many

organizations find it risky to

use such infrastructure to host

their business.

Parties

do

not

need

cryptocurrencies to validate a

transaction as they trust each

other

and

collectively

can

validate the transactions. DLT

networks would not need a

voting

process

with

51%

consensus

or

staking

mechanism for the validation

of transactions. As the nodes

trust each other, they can

jointly take a decision on

whether or not to validate the

transactions.

Hence,

the

consensus mechanism is often

far too simple.

Crypto

Economics

As public Blockchains have

their

respective

cryptocurrencies

part,

the

maintenance of the crypto is

always an overheard.

Private permissioned DLTs do

not need cryptocurrencies for

mining purpose, and hence,

have no such maintenance

overhead.

Performance

and Scalability

Because of the nature of the

consensus processes, most

public Blockchains are slow

and

also

face

scalability

challenges.

DLTs are much faster than

public Blockchains and also

can scale well.

Table Phase III

Though the private permissioned DLTs are not open to all, they use

certain common technologies with Blockchain such as asymmetric

Cryptography, hashing, multiple nodes with respective data stores,

decentralized consensus etc. There might be quite a few DLTs in the