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glossary

Definitions and terminology related to cryptoeconomics, blockchain and distributed ledger technology.
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Consortium Blockchain

Consortium blockchains are semi-private, permissioned blockchains that verify transactions through a limited set of pre-approved nodes rather than a single entity or a decentralized network of nodes. Access to the blockchain is controlled by a consortium typically comprised of organizations involved in interconnected business ventures. Members of the consortium are also the only actors able to run nodes and validate transactions Possible advantages of consortium blockchains include increased efficiency and lower cost of transactions similar to that of a fully private system, as well as higher ease of updating compared to a public system. Criticisms of this model include lower security and lack of a fully ‘trustless’ environment as a result of higher centralization than a fully permissionless blockchain. Since consortium blockchains are typically created for enterprise use, there are few examples of such systems made available for public use; Facebook’s Libra project intends to use a consortium blockchain model.