Overview
Also known as a federated blockchain, a consortium blockchain is a middle ground between public and private models. It is 'collaborative' in nature.
How it Works
A pre-selected set of nodes (e.g., 10 different banks) are responsible for the consensus process. To add a block, a majority of these organizations must agree.
Benefits
- Efficiency: Faster than public blockchains.
- Security: More secure than a private blockchain because no single company can alter the data.
- Privacy: Access can be restricted to the members of the consortium.