To understand what a consortium blockchain is, or, in other words, what kind of blockchain implementation consortiums need, let's check out an example. Banks want to build a blockchain to make money transfers easier, faster, and cheaper. In this case, here are the things they need:
- Speed: They need a blockchain network that can confirm transactions in near-real time. Currently, the Ethereum blockchain network block time is 12 seconds, and clients usually wait for a couple of minutes before confirming a transaction.
- Permissioned: They want the blockchain to be permissioned. Permissioning itself means various different things. For example: permissioning can include taking permission to join the network, it can include taking permission to to be able create blocks, it can also be taking permission to be able to send specific transactions and so on.
- Security: PoW isn't secure enough for private networks as there is a limited number of participants; therefore, there...