Network federation in the blockchain space refers to a governance or operational model where a group of pre-selected, trusted entities collectively operate and maintain a distributed ledger. Unlike fully permissionless networks, federation relies on a limited set of participants to validate transactions and secure the chain. This model often prioritizes efficiency and controlled oversight.
Context
News frequently reports on network federation in discussions about enterprise blockchain solutions, consortium blockchains, and central bank digital currency (CBDC) architectures. It offers a middle ground between centralized systems and fully decentralized public blockchains. The balance between trust minimization and operational control is a central debate surrounding federated networks.
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