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CFA Level I · CFA Level I Exam · Introduction to Digital Assets

Compared with a permissioned distributed ledger, a permissionless distributed ledger is most likely to:

A permissionless ledger most likely allows any participant to join and validate transactions. Access is open and no central party grants rights. Restricting validation to approved participants or relying on an administrator to grant access are characteristics of permissioned ledgers.

  1. Arestrict transaction validation to approved participants
  2. Ballow any participant to join the network and validate transactionsCorrect
  3. Crequire a central administrator to grant read and write access

Explanation

Permissionless networks are open: anyone can join, submit transactions and take part in validation. Permissioned networks restrict participation or validation rights to approved parties, often under an administrator. The other two options describe permissioned features.

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