Consortium Blockchain is one solution being adopted by a group of companies looking to leverage the benefits of distributed ledgers for the exchange of value and information. This article aims to take a deeper look at what a consortium blockchain is, providing an understanding of its unique position between public and private blockchains.
Understanding the Blockchain Spectrum
Before going further into consortium blockchain, you also need to understand the blockchain spectrum.
Public Blockchain
As the first and most well-known, public blockchains such as Bitcoin (BTC) and Ethereum (ETH) operate with a permissionless and decentralized structure. They allow anyone to join their network, encouraging equal participation.
Private Blockchain
Companies opt for private blockchains, limiting their use exclusively within their own organizations. This blockchain is managed centrally and denies external access to maintain control over sensitive data.
Get to know the Blockchain Consortium
Consortium blockchains are intermediate, combining the characteristics of public and private blockchains. Created collaboratively by a group of companies, this blockchain offers a shared decentralized network that is exclusive to consortium members.
Main Features of Consortium Blockchain
- Decentralized: Consortium blockchains achieve balance by maintaining a certain degree of decentralization. All participating companies operate independently, encouraging collaboration without a single entity dominating.
- Limited Access: In contrast to public blockchains, consortium blockchains restrict access from entities outside the consortium. It protects sensitive corporate data, providing a secure environment for collaboration without overloading the network.
Benefits of Consortium Blockchain
- Enhanced Collaboration: Consortium Blockchain facilitates collaboration among member companies on an equal basis, encouraging trust and equality in the network.
- Data Security: By restricting access to the consortium, sensitive corporate data remains protected, reducing the risk of unauthorized exposure.
- Efficient Network Management: Participation restrictions simplify network operations, preventing potential bottlenecks from external node surges.
Conclusion
Consortium Blockchain is a testament to innovation, offering a secure and collaborative decentralized network tailored for corporate alliances.
Their unique positioning bridges the gap between the openness of public blockchains and the exclusivity of private blockchains, making them an attractive option for groups seeking efficient and secure blockchain solutions.
Also read:
What is Block Size or Block Size on Blockchain
What Are Blockchain Oracles? Types and Examples
What is the Blockchain Consensus Algorithm?
DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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