What is a permissioned subnet and when would you use it?

• A. A permissioned subnet allows any participant to validate blocks.
• B. A permissioned subnet restricts validator participation to approved entities, used when regulatory or security requirements require controlled participation.
• C. A permissioned subnet is a temporary test network with no governance.
• D. A permissioned subnet operates without any access control.

Answer: (B)

A permissioned subnet is a blockchain network where who can participate as a validator and who can access the network is restricted to approved entities. This setup is chosen when regulatory or security requirements demand controlled participation, privacy, and a governed environment. By limiting validators and access, organizations can enforce identity, ensure compliance, and maintain an auditable trail of actions. It also often improves performance and privacy since the participant set is known and managed. The other scenarios describe open or unmanaged environments—where anyone can validate or access data, or where the network is a temporary test setup with no governance—which don’t meet the needs that a permissioned subnet is designed to address.