How Do Consensus Mechanisms Differ between Private and Consortium Blockchains for Trade Finance?

In a private blockchain for trade finance, the consensus mechanism is controlled by a single entity, often using a simple and fast algorithm like Raft, as trust is already established. A consortium blockchain, however, requires a consensus mechanism that establishes trust among multiple organizations, such as Proof of Authority (PoA) or Practical Byzantine Fault Tolerance (PBFT).

These mechanisms are more complex as they need to be fault-tolerant and ensure that no single member or small group can control the validation process, reflecting the decentralized trust model of the consortium.