Consortium Model

Definition ∞ A consortium model describes a governance structure where multiple independent organizations jointly control and operate a shared system or platform. This setup is common in enterprise blockchain applications where several companies agree on a common set of rules and infrastructure. Participants collectively validate transactions and maintain the distributed ledger, sharing both the benefits and responsibilities of the network. This model balances decentralization with controlled access.
Context ∞ The consortium model is a key organizational approach for many private and permissioned blockchain networks, particularly in supply chain, finance, and healthcare. Its appeal lies in enabling cooperation among competitors while maintaining data privacy and operational control. Debates persist regarding the optimal balance between centralized decision-making within the consortium and the inherent decentralized principles of blockchain technology. The model’s ongoing development focuses on enhancing interoperability and governance mechanisms among diverse members.