Federated Systems

Definition ∞ Federated systems are distributed computing architectures where multiple independent systems collaborate while retaining a degree of autonomy and local control. Unlike fully decentralized systems, federated models often involve a consortium or a group of trusted parties that collectively maintain and govern the network. This approach balances decentralization benefits with structured oversight, offering a middle ground for certain blockchain applications.
Context ∞ Federated systems are frequently considered for enterprise blockchain solutions where complete decentralization is not always feasible or desired due to regulatory or operational requirements. Discussions often center on finding the optimal balance between participant autonomy and collective governance to ensure data consistency and security. The design and implementation of effective federated architectures are key to expanding blockchain use in regulated industries.