Growth of blockchain applications seems to be on a rise, despite alleged presence of regulatory concerns around the technology. A blockchain concept called consortium blockchain, which refers to an association of different organisations with a private blockchain for every platform, is believed can achieve various industrial objectives.
“I think a blockchain consortium is a network consisting of entities that join forces to develop and implement blockchain technology for a purpose or industry. The goal of a blockchain consortium is the aim to create a shared infrastructure or platform,” Alankar Saxena, co-founder and CTO, Mudrex, a crypto-investing platform, told FE Blockchain.
From what it’s understood, a consortium blockchain consists of traits of both public and private blockchains. It’s believed that the aim of a consortium blockchain is to help organisations to tackle corporate issues around efficiency and accountability. As stated by Analytics Vidhya, a knowledge portal, a consortium blockchain can provide benefits such as data secrecy, maintenance of rules and regulations, increase in pace of settlements, removal of criminal behaviour, among others. However, the portal also mentioned that a consortium blockchain carries disadvantages such as time-consuming, difficulty in upgradation, among others, on account of its nascency.
“I believe consortium blockchains are beneficial for smaller groups where participant identity can be determined. Consortium blockchains intend to provide a solution for organisations seeking governance, efficiency, and privacy within a smaller, pre-defined group,” Rajagopal Menon, vice-president, WazirX, a cryptocurrency exchange, highlighted.
Insights from a research by Deloitte, a professional services network, stated that 74% of companies have opted for consortium blockchain-based services. Furthermore, many blockchain companies aim to supply different organisational facilities. Experts suggest that consortium blockchains can benefit sectors such as finance and banking, logistics, supply chain, healthcare, among others. Reportedly, blockchains such as R3’s Corda, JP Morgan’s Quorum, Hyperledger, among others, have adopted consortium features.
Future predictions suggest that growth of consortium blockchain can boost technologies such as artificial intelligence (AI) and Internet of Things (IoT). As per Bybit Learn, an online learning platform, consortium blockchain should be considered vital to ensure security of organisations’ clients, along with development of an economical cost structure.
“The future of blockchain consortiums is promising. As blockchain continues to evolve and gain traction, consortiums will play a role in shaping the industry’s direction. We can expect to see an expansion of consortiums globally, fostering collaborations between organisations across borders and industries,” Shrikant Bhalerao, founder and CEO, Seracle, a blockchain platform, concluded.
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