Private Blockchain vs. Consortium Blockchain: A Comparison Guide

If you are wondering what the types of blockchains are and how do they differ from one another, you have landed at the right page. This article illustrates the concept of private blockchains, consortium blockchain, and the differences between them.

Learning of the Blog

  • Introduction
  • Private Blockchain
  • Consortium Blockchain 
  • Private Blockchain vs. Consortium Blockchain
  • Conclusion



Blockchain technology is a shared, immutable ledger for recording transactions, tracking assets, and building trust without the need for any third-party involvement. There are three different types of blockchain platforms available in the market for various purposes, i.e., public blockchain, private blockchain, and consortium blockchain.

Before understanding the differences between them, let’s learn the common key features they have in them. All blockchains, despite the differences, are a network of peers that have append-only ledgers and uses a consensus mechanism to agree upon the correctness of transactions.


As blockchain technology is revolutionizing at an alarming rate, the scope and career opportunities are beyond imagination. If you are looking to give a head start to your career and want to become a blockchain expert or a blockchain professional, favorable chances are on its way.


Private Blockchain


Where public blockchain is permissionless meaning, anyone can join the network and read, write, or participate within the blockchain; private blockchain is a permissioned blockchain. These blockchains work based on the access controls which restrict the people who can participate in the network. Such blockchains are better suited to enterprise purposes, where an organization wants to experience blockchain properties without making their network externally accessible. Unlike public blockchains, private blockchains do not offer the true decentralization feature of the blockchain.


Want to build your own dApps? Check out the best blockchain certification courses here.


Consortium Blockchain 


Consortium blockchain, also known as the federated blockchain, is a blockchain technology where instead of a single organization, multiple organizations govern the platform. It is neither a public platform nor a permissioned platform. This type of blockchain is most beneficial where multiple organizations operate in the same industry and require a standard ground to carry out transactions or relay information. Although these blockchains might seem to be similar to private blockchains, they are different.

The major advantage of this blockchain is that it offers a collaborated environment to provide more exposure and innovation to enterprises.


Private Blockchain vs. Consortium Blockchain


As we have understood both the types of blockchains, now let’s focus on our main topic, i.e., how private blockchain differs from consortium blockchain.


  •  Decentralization


Private blockchain offers a partial decentralized network with a set of rules and regulations as there is only a single authority governing the blockchain network.

Contrary, although consortium blockchains are permissioned, they offer true decentralization because multiple organizations can actually make decisions on the platform, unlike private blockchains.


  • Accessibility 


When it comes to accessibility, private blockchains have a single organization to look after the network.

Consortium blockchain, on the other hand, has multiple organizations instead of a single organization to administer the platform. It is a permissioned platform where multiple organizations can actually make decisions.


  •  Consensus Mechanism


Private blockchains use some form of voting or multi-party consensus mechanism. Even though it is known for saving a lot of energy, it is a little less secure when compared to power-consuming consensus algorithms such as Proof of Work.

On the other hand, Federated blockchains also use multi-part consensus algorithms or some voting schemes to reach an agreement.


  • Handling Data in the Ledger


As private blockchains have a single authority; therefore, it allows read and writes access to the ledger, indicating that once a transaction gets an entry into the ledger, no one can alter it. But, in this case, only the single authority can write or read any entries in the ledger.


In the consortium blockchain, no one can also change any entries of the ledger. But unlike private blockchain, multiple organizations can write and read transactions on the ledger.

  •  Cost & Transactional Speed


Unlike public blockchains, both the blockchains-private and consortium are comparatively cheaper. They also take fewer resources to setup.

Talking about transactional speed, the more number of users on the blockchain platform, the more it slows down. Unlike a public blockchain, both the blockchains have an authentication process to limit the access of users, and thus their transactional speeds are better when compared to public blockchains.




Fundamentally, all three types of blockchains are different technologies that can be leveraged based on one’s requirement. As both of the platforms, private and consortium, offer privacy, security, and fast performance, it is easy to integrate them. Consortiums are likely to interest to organizations who want to streamline communication among one another while private blockchains are suitable for a particular organization.


To get instant updates about Blockchain Technology and to learn more about online blockchain certifications, check out Blockchain Council.