A consortium blockchain is a group of multiple financial institutions where each financial institution has its private blockchain. Read more about what is a consortium blockchain

1. What is a Consortium Blockchain? -
A Complete Guide | Shardeum

2. Introduction
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Blockchain technology has been expanding rapidly over the last few years. You might have seen some
experts talk about various applications of blockchain other than just cryptocurrency. Blockchain is not
just related to crypto; it is a technology that helps store and securely share data sets. Each block
contains a data set that is added to the block using complex algorithms. These algorithms are called
hash and provide cryptographic security to the block. Each blockchain allows participants, called
nodes, to access and edit the data. Public blockchains allow anyone to become a node, while private
ones define specific criteria.
Now, constituting some parts of both, there is a consortium blockchain that only some people
understand so far. In this post, let’s see an answer to the question ‘What is a consortium blockchain?’

3. What is a Consortium Blockchain?
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As mentioned just now, there are three kinds of blockchains. One is where every action is public,
and anyone can join as a node. The other one is owned by a private entity and accepts nodes
only after certain criteria are met. Both these types of blockchains are more popular in the
cryptocurrency sector. However, there is also a consortium blockchain between these two,
broadening blockchain technology’s scope.
When asked ‘what is a consortium blockchain?’, people often confuse it with a private
blockchain. Like a private chain, a consortium blockchain is privately owned but not by a single
entity or individual. Instead, a group of individuals from different sectors or a group of
companies owns such a chain. It also differs in functions since a consortium blockchain is used to
collaborate data from multiple sources. It helps keep the flow of data secured and efficient
between entities.

4. What are the Characteristics of Consortium Blockchain?
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1. Partially Decentralized
In decentralization, it falls in the middle as there are nodes from different organizations. These
nodes have an equal say in the blockchain, and a consensus is required for every transaction to
pass through. With a limited number of nodes, the transactions often take less time. Also, there is
no monopoly inside the blockchain regarding any decisions.
2. More Controllable
A public blockchain lacks the flexibility to change the data entered in a block once it’s done. Such an
issue does not occur with the consortium blockchain. It can be done very easily if the consensus
agrees to change certain data.

5. What are the Characteristics of Consortium Blockchain?
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3. Privacy of Data
Since a consortium blockchain allows only a few nodes on the blockchain, few people get the data
shared on the blockchain. Such an arrangement helps ensure that the data stored is untampered
and completely secure. Only a few users have the right to access the data, and there cannot be any
modification without the whole network of nodes agreeing.
4. Faster Transactional Speed
Since there are lesser nodes on a consortium blockchain, there is not much competition to verify a
transaction. This helps in keeping the transactional speed very high. It is easier and faster to reach a
consensus than a public blockchain.

6. Conclusion
A detailed discussion of what is a consortium blockchain helps get a clear
perspective about the same. By discussing the advantages of consortium
blockchain and disadvantages of consortium blockchain, you must have
understood by now how helpful it is. A consortium blockchain maximizes the
economic benefits of a business by helping them partner up with other brands.
Apart from cryptocurrency, many industries can benefit from blockchain
technology; this is where the consortium blockchain helps.