Consensus protocol for permissioned blockchain networks

Accubits Technologies Inc
3 min readJul 7, 2020

A simple guide to how consensus protocol is governed with in a permissioned blockchain network.

Assuming that you already have a basic understanding of what blockchain technology is, we’ll discuss the types of blockchain networks and different consensus protocols in this article.

Permissionless & Permissioned blockchains

Permissionless blockchains are also known as public blockchains. Here, anyone can access and create data, publish smart contracts or run nodes. Individuals do not need to get permission to join and interact with other members of the blockchain.

In permissioned blockchains, not everyone can join the blockchain. Each individual will need special permission from the network administrator or the owner to join the network. This is useful for companies, banks, and institutions that prefer to comply with the regulations and would like to have complete control of their data. In a permissioned blockchain, all the participating nodes are known and chosen. However, consensus is still required because we can’t assume that every node is trustworthy.

A consensus protocol enables all the parties of the blockchain network to come to a common agreement (consensus) on the present data state of the ledger. This promotes trust among unknown peers in a distributed computing environment.

No transaction within a blockchain network can take place without the help of a proper consensus mechanism.

To gain an in-depth and easy understanding of how to implement blockchain in your business, this article would be much helpful:

Types of consensus protocol for permissioned blockchain networks

The most popular consensus protocols that are being implemented in many organizations around the world are:

PBFT Consensus

PBFT can be very beneficial for low latency storage systems, This type of model is often used in digital assets backed platforms that don’t need a great amount of capacity, but carry out a large number of transactions. PBFT makes sure that the transaction records within the network are accurate. A few examples of permissioned blockchains that use this model are Hyperledger and Chain.

Federated Consensus

This model guarantees security and transparency . It is ideal for use cases such as cross border remittance, real time KYC etc. Common examples of blockchains that use this model are Stellar and Ripple.

Round Robin Consensus

Round robin consensus process doesn’t rely on a single participant for the block validation process. In this model, several nodes play a major role in validating and signing transactions. which makes this process more secure when compared to other consensus processes. There are also lower chances of double spend attacks due to the voting power distribution among trusted nodes. Round robin consensus mechanism is ideal for the trade, finance and supply chain industries. Some well known permissioned blockchains that use the Round Robin consensus method include Multichain and Tendermint

In a permissioned blockchain, choosing the right consensus protocol for permissioned blockchain depends on factors like the extent of decentralization required (For example, how much the participants in a network trust each other, the number of permissions that must be granted to all the participants to carry out important tasks on the network etc).

Explore more about this topic in detail here:



Accubits Technologies Inc

Accubits Technologies is an enterprise solutions development company focusing on AI and Blockchain technologies, based in Virginia, USA.