What Is the Risk of “Collusion” in a Limited Validator Set?

The risk of collusion is that a supermajority of the limited, known validator organizations could secretly conspire to act maliciously for their collective financial gain. They could censor specific transactions, reverse past transactions, or commit double-spends.

While the legal framework of a consortium chain mitigates this, a successful collusion would breach the trust model, destroy the chain's integrity, and lead to significant financial and reputational damage for all involved parties.