Welcome to Blockchain 101: What are Blockchain Consortiums? Today we are going to talk about a special hybrid blockchain that combines features of Public and Private.
What are Blockchain Consortiums?
Consortiums are a type of blockchain network where multiple organizations maintain the system. However, unlike bitcoin this type of blockchain is NOT public. You would find a Blockchain Consortium most similar to a private network.
You can look at these blockchains as a kind of hybrid between public and private blockchains. Because even though it’s a permissioned network, Blockchain Consortiums offer a decentralized structure. So, each organization in this network receives similar treatment, which keeps things transparent and fair amongst the parties involved.
There is no single entity ruling over the network. It’s a platform where multiple companies collaborate and share data as well as maintaining the rules and records together.
Types of Blockchain Consortiums: Technology, Business, and Dual
There are three types of Consortiums: Technology focused, business focused, and dual focused.
Technology Focused
The Technology Focused are Blockchains such as Hyperledger and the Enterprise Ethereum Alliance offer reusable blockchain platforms, solutions based on technical standards. They have multipurpose use cases.
Business Focused
Business Focused are a form of consortium developed with a specific business problem to solve such as banking, supply chain, and healthcare. Instead of offering open source platforms they tend to go for commercial purposes only.
Dual Focused
Dual Focused Consortiums simply does both. They would offer an open source platform suitable for any kind of solution but also would offer commercial products as well. An example would be R3.
Benefits of Blockchain Consortiums
Some of the key benefits from using blockchain consortiums include: Cost savings and sharing risks – it also provides a regulated environment for participants to collaborate and scale. Finally these Blockchains prevent criminal entry through being a permissioned network.
Case Study: IBM Food Trust
Now let me give you an example of a Blockchain consortium. IBM Food Trust is a consortium that focuses on bringing safety and transparency to food supply chains. IBM Food Trust offers the largest ecosystem of producers, manufacturers, suppliers and retailers. They even have members such as Walmart and Nestle. In addition, through their platform, enterprises can track their food from their suppliers to consumers.
Thanks for reading Blockchain 101: What are Blockchain Consortiums? I hope by now you have a better understanding about Blockchain Consortiums.
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2 Responses
Big goodluck..
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