Consortium Blockchain provides a faster and more protected ecosystem than a Private Blockchain?
Answers
Consortium Blockchain provides a faster and more protected ecosystem than a Private Blockchain because of greater efficiency and transaction privacy. Consortium blockchains can be highly effective if used in business organisations which require a higher degree of collaboration like banks. However consortium Blockchain works under a group of entities. Private Blockchain operates under a single entity.
Blockchain: Blockchain is a technology that is used for storing information with identical access all over the network. The information is stored in blocks and each block contains a cryptographic hash function. There are three types of Blockchains:
- Private Blockchain
- Public Blockchain
- Consortium Blockchain
Reason:
In a consortium blockchain, the process is controlled by predefined set of nodes. The cost is low and also the speed is enhanced. The presence of cryptographic hash values provides "high trust" and also the entire blockchain is controlled by a single entity. And so, Consortium Blockchain provides a faster and secure ecosystem than a Private Blockchain.