What Are the Key Differences between a Consortium Blockchain and a Private Blockchain in Financial Settlements?
A private blockchain is controlled by a single entity, giving it centralized authority over financial settlements. In contrast, a consortium blockchain is governed by a group of pre-selected organizations, decentralizing control among trusted partners.
This means settlement validation and rule-setting are collaborative in a consortium, reducing the risk of a single point of failure. While both are permissioned, a consortium fosters greater interoperability and trust between different financial institutions without a central intermediary.