The consortium blockchain is basically a ‘semi-private’ system that has a controlled user group, but works across different organizations.

consortium blockchain

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The consortium blockchain is basically a ‘semi-private’ system that has a controlled user group, but works across different organizations.

 In layman’s terms consortium blockchain is a blockchain technology where instead of only a single organization, multiple organizations govern the existing platform. 

It’s a permissioned platform and not a public one.

Therefore, they provide security that is inherited from public blockchains.

Consortium blockchains are generally associated with the enterprise use, where a group of organizations collaborate to leverage blockchain technology to improve their businesses.

Moreover, blockchain consortium of like-minded companies can leverage information to improve workflows, accountability, and transparency.

Such a blockchain is also known as a semi-decentralized blockchain.

Examples: Quorum, Hyperledger, and Corda.

Advantages of Using Consortium Blockchains

  1. Cost – Consortium blockchain has a very low transaction cost. Consortium blockchain providers will always offer platforms in a way that offers low transactions for its users. 

Moreover, in consortium blockchain, everything is regulated. So, the transaction fees stay the same no matter how many users are on the existing network.

  1. Speed – Consortium blockchain providers will always offer the fastest output compared to public blockchain, to its users and as the platform is permissioned, not everyone and anyone can get access to it. 

As a result, there would always be control over how many users are active at the same time in the network.

  1. Security â€“ In such a blockchain, one can’t be anonymous. In reality, anonymity gives rise to criminal activities. But as the federated blockchain needs to have known identities, it’s impossible for criminals to get into the system.

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