A consortium blockchain is a type of blockchain network that is jointly controlled by multiple trusted organizations. Consortium blockchains are permissioned, meaning that participants must be invited to join the network and usually have predefined roles and responsibilities. This type of blockchain is suitable for industries where multiple organizations need to collaborate while maintaining a certain level of control and privacy.
The main difference between consortium blockchains, public blockchains, and private blockchains lies in their level of decentralization and permissioning:
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Public blockchain: Anyone can participate, view, and validate transactions on the network. These blockchains are fully decentralized and permissionless, such as Bitcoin and Ethereum.
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Private blockchain: A single organization has control over the network and determines who can participate and access the data. Private blockchains are centralized and offer more control over permissions and governance.
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Consortium blockchain: Multiple organizations jointly control the network, and participants are typically known and vetted entities. Consortium blockchains offer a balance between decentralization and control, making them suitable for industries requiring collaboration among multiple trusted parties.
