Blockchain is an important part of cryptocurrency. It is a technology that was developed by Bitcoin’s mysterious founder, Satoshi Nakamoto. Blockchain was deployed by him for an objective to facilitate a trustless online payments ecosystem and decentralized in the form of Bitcoin as a digital currency. It has led to the introduction of other cryptocurrencies and digital assets that operate on blockchain technology as a base. If you regularly follow blockchain crypto news, then you get to know all the current developments that are taking place in the blockchain and crypto world. You must be familiar with types of blockchain, which are public and private. But, it is neither of these two blockchains which we are going to emphasize, rather, we are going to let you know about consortium blockchain.
Simple Overview Of Consortium Blockchain
Apart from public and private blockchains, there is another blockchain applicable to Satoshi’s previous execution of blockchain. This is a consortium blockchain. Public blockchain as you know is attained by everyone, whereas, a private blockchain is used by a single enterprise. But Consortium blockchain is blended of the above two versions, mostly nearer to the private one of the blockchain ledger. It is the advanced way of blockchain use for business. This blockchain is free from any restriction, indicating to the fact about the participation of any user having the connection of the internet can actively participate in the public blockchain. There is even no complication for anyone around the world to access data included in the blockchain. Globally, anyone can implement transactions on a public blockchain.
Pros Of Consortium Blockchain
The consortium blockchain is completely monitored by a certain group but is secured from dominance. Whenever there is agreement from each member, this supervision becomes able to run their rules, makes changes in balances, and terminating transactions that are found to be full of errors. Besides this, it is also involved in other functions to grant result-oriented cooperation for the firms with a generic goal.
The element of privacy is much in consortium blockchain since the information from the checked blocks is unknown to the public view. But any member belonging to this blockchain can access it. Unlike a public blockchain, there are no fees for transactions in the consortium blockchain.
Another difference that sets apart consortium blockchain from public blockchain is its feature of flexibility. There are possible problems related to mutual agreement and synchronization in public blockchain by maximum validators. Such kind of divergence gives rise to forks. But this does not happen in a consortium.
Cons Of Consortium Blockchain
No matter how much pros consortium blockchain is having, it has its share of cons. One of the major disadvantages of this blockchain is being centralized, which makes it prone to attack from malicious players. Whenever the number of participants becomes limited, it is estimated of one of them to be at fault.
The process of launching the consortium blockchain is very sensitive. All the members must give their approval to the protocol for communication. Since there is less flexibility found in an enterprise in comparison to SME, erecting a general network between enterprises is very slothy.
If you are keen for the economic growth of your business, while holding cooperation with firms, then consortium blockchain promises you with optimization and greater communications between the parties. This blockchain finds its best use in sectors like finance and banking sectors, where it provides help in identification and assessment as per the required need of any bank. Not only this, but consortium blockchain also works at its best in speeding up formalities related to claims for insurance payment and to exchange of unlimited money and information, digitally. To know any new update regarding this blockchain and cryptocurrencies, stay abreast of blockchain education news.