Consortium Blockchain

What Is a Consortium Blockchain?

Consortium blockchains are typically created by corporations that want to leverage the power and benefits of a blockchain but do not wish to have their information publicly available on a more open and transparent one, like Ethereum.

Public blockchains, like Ethereum and Bitcoin, are permissionless, decentralised, and accessible to anyone. A private blockchain is designed to service a single entity or the creator of the blockchain. They are typically more centralised, and only certain people can access them.

Consortium blockchains are a middle ground between public and private blockchains. They act as a blockchain that multiple corporations can use to openly exchange information while having all the benefits of blockchain security. Only corporations that are part of the consortium have access to a consortium blockchain, and the information exchanged remains private amongst them.

Consortium blockchains allow for more decentralisation compared to private blockchains because every corporation involved runs and supports the network.

Key Takeaway

A consortium blockchain is privately owned and managed by a group of corporations, where a consortium can share information privately while having the security and immutable benefits of a blockchain.

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