26 Sep How the Consortium Blockchain Works
25 September 2019
Earlier, we have reviewed both public and private blockchains. Today, we invite you to deep dive into the premises of a consortium blockchain.
What is a Сonsortium Blockchain: Simple Overview
A consortium blockchain is a relatively new way of using Satoshi’s blockchain technology for enterprises. If public blockchain is accessible for everyone and the private one usually services one enterprise, consortium blockchain is a hybrid of the previous two versions but closer to the private type of a distributed ledger.
The main idea behind it is to meet the challenges of a particular industry by scaling the effect of cooperation. This creates an advantageous network, which includes not only business allies but competitors too. This is what the research of Deloitte proves, showing that 74% of organizations are participating in a blockchain consortium with competitors or would like to join one.
With consortia, newcomers can join the formed structure and shared data instead of building it from scratch. At the same time, through solving common problems together, companies reduce development costs and time expenses. Finally, coordination of actions and expertise exchange helps to avoid duplication, so that different subjects wouldn’t do the same work, but share responsibilities.
Working Consortia Projects
The Voltron consortium was launched by R3 and CryptoBLK in 2018. It involves twelve banks: HSBC, BNP Paribas, BBVA, SEB, Natwest, Scotiabank, Mizuho, ING, Intesa Sanpaolo, Bangkok Bank, U.S Bank, and CTBC bank. The purpose of the consortium is to digitize documentation and decentralize sharing through blockchain. The transaction takes less than 24 hours instead of several days as it was before.
Read more at Intellectsoft, here.