Arestricted blockchainis one where participation—either in transaction validation, data access, or both—is limited to selected entities rather than being open to the public.
Consortium blockchain (D)is a common type of restricted blockchain in which multiple pre-approved organizations collectively manage the network. It offers partial decentralization but with controlled membership, making it suitable for regulated environments such as financial services, supply chain tracking, and interbank settlements.
Other options explained:
Hybrid (A):Combines elements of public and private chains, but not necessarily “restricted” in the strict governance sense.
Public (B):Open to anyone to join, read, and write data; not restricted.
Private (C):While private blockchains are also restricted, in AML/CFT guidance, “restricted blockchain” generally refers to consortium arrangements involving multiple vetted participants, rather than a single organization’s closed chain.
Regulatory and technical literature in DIFC/ADGM contexts note thatconsortium blockchainsallow for compliance controls, participant vetting, and transaction monitoring—making them particularly suitable for financial ecosystems where controlled access is essential.
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