A consortium blockchain is a type of blockchain network where control is shared by a group of organisations rather than being completely open to the public or fully restricted to one entity. It is often described as a “partially decentralised” system, since multiple parties work together to maintain and validate the ledger. Unlike a public blockchain, where anyone can join and participate, a consortium blockchain allows only selected members, typically businesses or institutions, to access and operate the network.

In this setup, pre-approved participants run the nodes that validate transactions and maintain consensus. This makes the system faster and more efficient compared to public blockchains, as the number of validators is limited. At the same time, it is more transparent and trustworthy than a private blockchain controlled by a single organisation, since multiple entities share authority.

Consortium blockchains are widely used in industries where collaboration between different players is necessary, but data security and privacy are also important. For example, banks can form a consortium blockchain to process interbank settlements more securely, or supply chain companies can use it to track goods and share data with partners in real time.

The main benefits include greater efficiency, reduced costs, and improved transparency across organisations. However, they also come with challenges such as governance issues, difficulty in coordination, and limited flexibility compared to public blockchains. Overall, a consortium blockchain strikes a balance between openness and control, making it a practical solution for enterprises seeking secure and cooperative blockchain applications.