Network Federation

Definition ∞ 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.