Definition ∞ Federated consensus is a type of distributed consensus mechanism where a predefined group of trusted entities or validators agrees on the validity of transactions. Unlike fully open, permissionless systems, participation in the consensus process is restricted to a select set of known actors. This approach often provides faster transaction processing speeds and higher throughput compared to public blockchains. It represents a middle ground between centralized and fully decentralized systems.
Context ∞ The discussion surrounding federated consensus frequently involves balancing efficiency with decentralization concerns. News reports often cover enterprise blockchain solutions that utilize this model for internal or consortium-based applications. A key debate centers on the level of trust required in the participating entities and the potential for collusion among them. Future developments will likely explore hybrid models that combine aspects of federated consensus with more open participation to address these trade-offs.
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