Permissionless Technology: The Core Of True Decentralization

Noah Fields
Noah Fields

Permissionless Technology: The Core Of True Decentralization
Table of Contents
Table of Contents

A truly permissionless and decentralized environment is at the core of the entire crypto and blockchain space, providing interested network participants with easy access to the advantages of blockchain and decentralization.

One of the major selling points for blockchain technology is not the blockchain itself, but the promised permissionless technology it provides through a decentralized consensus mechanism.

A consensus mechanism helps every participant on the blockchain reach an agreement regarding transactions and decisions on the network.

Blockchain’s inherent permissionless technology has made cryptocurrencies and related applications more popular, especially among people looking to avoid centralization.

What is Permissionless Tech?

Permissionless tech is an intrinsic part of public blockchain systems that allows anyone to join and interact with the network. Any willing participant can perform various blockchain activities, including creating addresses, developing dApps, creating smart contracts, and contributing to network consensus by mining or staking. There is no signing up or no permission that needs to be granted by a third party, making it a truly inclusive ecosystem where anyone can partake.

Blockchain’s permissionless nature is widely considered a positive quality, as it is necessary for true decentralization. Since there are few to no entry barriers, these systems are open to anyone regardless of location or background. Participants can use or maintain blockchain networks with only a computer and an internet connection, there are no other limiting factors.

Characteristics of Permissionless Technology

Permissionless tech systems have a few features in addition to their low barrier to entry. The following are a few noteworthy characteristics that contribute to their inclusivity:


Permissionless networks are fully decentralized. This means that no central entity has the authority to make any changes to the public ledger, as it is controlled by an open group of participants. Decentralized networks run on consensus protocols that ensure a majority of network participants agree to any network changes, making it democratically fair for all.

Digital Assets

Another notable characteristic of a permissionless blockchain network is the presence of a financial system or token economy. Most permissionless networks have a specific type of utility token that rises and falls in value. This value volatility largely depends on several factors, including the relevance and state of each blockchain. These networks may also employ utility or monetary tokens depending on each network’s purpose. By including digital assets within the consensus mechanism, the network can provide financial incentives for its validators to remain truthful.


Many permissionless systems don't require users to submit personal information before creating addresses or performing other network activities. However, personal information is a requirement for legal purposes in many cases. There is also the aspect of pseudonymity, where the identity of a user is semi-revealed or semi-known, but not fully.

Scalability and Performance

Permissionless systems improve the network’s ease of growth and scalability, with high transaction frequency and interactions on the public ledger. This improvement speeds up consensus validation, enhances security, and reduces the risk of failure.


By design, permissionless blockchains are transparent. The transparency feature is a mandatory characteristic of any blockchain that intends to give prospective participants a reason to trust in the open system. A transparent network must grant users full access to available information, including network addresses and details of processing transactions into blocks, so the history of the network can be verified by all.

Permissionless Tech: AtomicDEX

AtomicDEX is an ideal example of a fully permissionless tech-based system. It is an end-user application built on the Komodo'S AtomicDEX API, an open-source atomic swap protocol.

Many decentralized exchanges offer some semblance of a permissionless system by providing a fraction of what a true permissionless exchange should be. However, AtomicDEX features all the necessary requirements of a truly permissionless network, including:

  • An InstaList feature that enables users to list any ERC-20, BEP-20, or QRC-20 token as a custom asset by providing the smart contract address
  • Non-custodial and decentralized peer-to-peer order books
  • A genuinely customizable trading experience
  • Peer-to-peer trading with no middlemen or third-party oversight
  • The ability to place any number of limit orders with the same funds at any number of price points.

In addition, AtomicDEX does not limit its users to trading on a single blockchain protocol. Instead, it offers a wide range of cross-protocol support functions that let users seamlessly trade several digital assets across several blockchains.

Some other advantages provided by permissionless systems like AtomicDEX include:

  • Broader decentralization with extended access across more network participants than in permissioned blockchains, essentially increasing the network’s user base.
  • Improved transparency, which speeds up transaction reconciliation across unknown parties.
  • Censorship resistance supported by broad accessibility and network participation across various locations.
  • A more secure network where disrupting consensus mechanisms through a 51% attack is very unlikely. Also, an attack on one node cannot affect the entire network.
  • Clear-cut governance structures
  • High customizability
  • Comparatively better scalability

Members of the blockchain community sometimes worry that permissionless systems create a cesspool of unregulated and possibly malicious entities. On the contrary, a genuinely permissionless and decentralized environment is necessary for the entire crypto and blockchain space, as all activities are publicly monitored.

Since the emergence of blockchain tech, many people have gradually moved their personal finances, businesses, and stored assets to blockchain-based platforms. This massive adoption of blockchain tech aims at genuine freedom and self-sovereignty.

The number of crypto traders and enthusiasts who wish to experience true freedom through permissionless tech while traversing the crypto and blockchain space is increasing.

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