You are on this page, which means that you are fully acquainted with blockchain and its benefits. It is one of the digital markers of the 21st -century financial ecosystem. The latest mediums that are exchanged on such immutable networks are bitcoins and other cryptocurrencies, to name a few. It is basically a network that provides ledgers and smart contracts to function. It is a decentralized ledger technology, that records all kinds of digital assets and their transactions. Moreover, it does not require a third party to initiate or approve any of them. A consortium blockchain is a sub-type of blockchain technology today. And, you should also know more about it, to gain a complete and universal understanding of the blockchain ecosystem.
You will come across this term more often today. It is nothing but a network that comprises several nodes and access controls. If you compare a consortium to a public blockchain, you will come across certain differences. However, you will be amazed to know, that it is far more secure than a public blockchain. Moreover, it is scalable in nature. It grows with your company or product growth. So, you are saved from additional expenses in the future. It also allows an overall reduction in the load on the blockchain. You should delegate the task of creating one to a consortium blockchain development company. A company or developer having a complete understanding of the foundation and applications of such a blockchain can give you full leverage.
More About Its Features
A consortium blockchain have fewer participants at any given time. Furthermore, it utilizes the voting system to ensure speed. The nodes on this blockchain can write a transaction but cannot add a block on their own. The nodes from other networks add the blocks. However, you have to get them verified, before adding them to the network. The consortium blockchain development is something that is going strong in the market at present. You can also call it semi-decentralized in nature, due to this feature. A member is not allowed to get access to a single entity. It is instead delegated to a group of nodes. It helps in maintaining data secrecy. Thus, you can come to the conclusion that it is more secure than public blockchains. There is another type called the Hybrid blockchain that uses both private and public blockchains. There are multiple members under such blockchains and each one of them are controlled separately. The number of users on such chains is less in number, so there is less fraud. If your company is aiming big, you should definitely go for consortium blockchain.
You should note some of the features of this type of blockchain today. They are as
1. A single party gets to control the entire chain, in this case. However, it is immune to
monopoly. Each member that exists on the chain can create their own rules, and
define transactions, and systems. Additionally, the members can cancel bad
transactions or wrong ones, modify pre-existing ones, and create a beneficial
consortium of like-minded firms in the same blockchain ecosystem.
2. There are a few recognized members of a small network, comprising nodes that
validate the transactions. So, you can easily detect those who are breaking or trying
to break the rules.
3. The public does not get all the information regarding the blockchain, and this quality
makes it all the more secure. Only the consortium members get to know about the
details in totality. Thus, this kind of blockchain provides users with a high level of
safety and security. Clients who invest in such platforms are also able to enjoy
4. Lastly, unlike a public blockchain, this kind of blockchain does not have any fee. So,
that makes it all the more popular amongst companies and investors.
Applications of Consortium Blockchain Technology
1. It is now clear that this type of blockchain has many applications in several industries. You
should know about a few, to ascertain your compatibility with the same.
2. The finance and banking sectors are leveraging the benefits offered by such ecosystems. The
best consortium blockchain development company will likely give the sector a huge push
towards efficacy. Now, KYC maintenance is a thing of the past, as banks can maintain such
records anywhere. Distributed ledgers distribute the necessary information, as and when
3. It also offers a huge scope to the logistics sector. You can track all the products and also
assist in their supply, by roping in such ecosystems.
4. Healthcare and insurance sectors are also benefitting from the Consortium blockchain
All the companies looking for a private but secure blockchain ecosystem can gain from such
a blockchain today.