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Consortium Blockchain- Advantages and Disadvantages

The Consortium blockchain, also known as a federated blockchain, has both private and public blockchain features. However, it is different in that multiple organizational members collaborate on a decentralized network. Essentially, a consortium blockchain is a private blockchain with limited access to a particular group, eliminating the risks that come with just one entity controlling the network on a private blockchain. In a consortium blockchain, the consensus procedures are controlled by preset nodes. It has a validator node that performs transaction initiation, receipt, and validation, while member nodes have the ability to send or receive transactions.


Compared to a public blockchain network, a consortium blockchain is typically more reliable, scalable, and effective. It enables access controls, similar to private and hybrid blockchains, and provides greater decentralization features along with a sense of security. This is because a user doesn’t have to take full end-to-end responsibility for everything.


Compared to a public blockchain, a consortium blockchain is less transparent. The network’s functionality may still be hampered by the blockchain’s own rules if a member node is attacked. Additionally, internal conflicts can pose a greater risk to the integrity of the network.

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