What is Consortium Blockchain?
Let's find out Consortium Blockchain meaning, definition in crypto, what is Consortium Blockchain, and all other detailed facts.
A consortium blockchain is a type of blockchain network that is typically used by corporations and groups to share information on a blockchain without making it open to the public. It can be seen as an intermediary between public and private blockchains.
Public blockchain networks are the most popular type of this technology. The Bitcoin blockchain, the first blockchain in the world, was designed to be public. This blockchain type is popular among other decentralized cryptocurrency blockchains, like Ethereum or Tezos. Public blockchains are permissionless and decentralized, thus accessible to all willing participants.
Private blockchain networks are primarily designed by corporations and can only be accessed within the organizational structure. No outside users can access private blockchains. This model is typically managed by a centralized authority.
Consortium blockchain networks fall in the middle between the features of public and private networks. They are designed and used by groups of companies, allowing them to employ a decentralized network within the consortium. Similar to private networks, no actors outside the consortium can access the blockchain.
Consortium blockchains are more decentralized than private blockchain networks. All companies within the consortium are independent and equal network members. As in public networks, all consortium members act as nodes within the network with an even level of authority.
However, unlike public networks, consortium blockchains restrict any outside access to the network. This way, the private corporate data of the corporations are protected, and the network load is smaller since the number of nodes is kept relatively low without outside interference.