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.
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 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 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.
If you found this article helpful don’t forget to subscribe to our newsletter below and check out some of our other content!
Metexit! Facebook, now Meta, has seen an executive exodus with an executive at its cryptocurrency division leaving the company. Rob Collier, former head of consumer
United States Federal Reserve chair Jerome Powell opens the door to interest rate hikes next year. Also, Powell is not concerned about cryptocurrencies disrupting financial
Elon Musk, Time’s Person of the Year for 2021, has his carmaker Tesla start accepting meme coin Dogecoin. Customers can use the meme-based cryptocurrency to
Blockchain yes, bitcoin no? HSBC and Wall Street bank Wells Fargo announce a blockchain solution for the foreign exchange (FX) settlement. The two banks will
Is India accepting bitcoin as legal tender? A free bitcoin airdrop to all residents? Just a fake tweet from India Prime Minister Narendra Modi’s twitter
WhatsApp ventures into instant cryptocurrency payments, launching a trial in the US as a first step. Would it be a welcoming signal from the US