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Consortium Blockchain

A blockchain governed by a defined group of organizations rather than one company or the unrestricted public.

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Definition

A blockchain governed by a defined group of organizations rather than one company or the unrestricted public.

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Why it matters

Enterprise concepts focus on organizational adoption, integration, governance, and operational requirements.

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How it works

Multiple organizations operate nodes that validate transactions within a private, governed network. A consensus mechanism, such as Proof of Authority, is typically used to ensure participants remain honest and performant. Only nodes belonging to authorized entities can participate in the consensus and read the ledger history.

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Real-world example

The R3 Corda network is a primary example, connecting multiple financial institutions to settle transactions in a shared, permissioned environment.

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Advantages

  • High transaction throughput and speed
  • Controlled and private data access
  • Efficient collaborative governance

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Limitations

  • Lower decentralization compared to public chains
  • Dependent on the honesty of participants
  • Risk of collusion between consortium members

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Common misconceptions

  • Consortium blockchains are fully public.
  • They provide total anonymity for participants.
Canonical knowledge ID: glossary:consortium-blockchain