What is one characteristic of Permissioned DLT?

In the context of Permissioned Distributed Ledger Technology (DLT), one of its key characteristics is the ability to include identity verification. This feature is essential in a permissioned environment because it facilitates trust and security among participants. Unlike permissionless systems, where anyone can join and contribute to the blockchain, permissioned DLT requires that participants are known and verified before they can access the network. This ensures that only authorized entities can participate in the transaction process, which enhances the integrity of the data recorded on the ledger.

By incorporating identity verification, a permissioned DLT can maintain a clear audit trail and ensure compliance with regulations, which is crucial in various industries such as finance, healthcare, and supply chain management. This focus on identity helps to mitigate risks, prevent fraudulent activities, and maintain the overall stability of the network.