A federated blockchain, also known as a consortium blockchain, is a private blockchain network managed by multiple entities with special privileges granted to each participant. Controlling entities typically participate in the consensus process as transaction validators (by hosting a node or several nodes) and have access to specific types of data, which is often accomplished through specialized authentication systems. Consortium blockchains are a less decentralized form of Distributed Ledger Technology (DLT) that retains some distributed system benefits for enterprise and government use cases.
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