Blockchain Consortiums are different to normal public or private (single user) blockchains. Blockchain Consortiums are maintained by a number of users (typically a group of organisations): it is still a permissioned blockchain but one with a decentralised structure, but is a much more collaborative environment.
There are a number things that a Blockchain Consortiums can offer to your organisation, they can often provide significant cost savings for the users as well as low transaction fees, significantly reduced criminal threat, and a regulatory environment.
There are a few different types of Technology focused Blockchain Consortiums which means the they are reusable. They are Business focused where the blockchain is designed specifically to tackle a business issue and Dual focused where the blockchain offers a hybrid solution of both Business focused and Technology focused.
A Deloitte study of 1386 organisations shows what benefits organisations expect the most from Blockchain Consortiums, the top three were: Cost Savings, Accelerate Learning and Risk Sharing.
Benefits organisations are expecting from Blockchain Consortiums
- Cost Savings – 57%
- Accelerate Learning – 55%
- Sharing Risk – 47%
- Build Critical Mass of Adoption – 45%
- Maintaining Relevance/Lifespan – 42%
- Influencing Standards – 42%
The study also examined the criteria that the same organisations were using to select their Blockchain Consortiums
- Aligned Objectives – 41%
- Quality of Other Members – 37%
- Evidence of Influence – 36%
- Opportunity to Influence – 36%
- Affordable Cost of Participation – 36%
- Regulatory Involvement – 36%
- Membership Policies or Rules – 35%
- Maturity – 34%
- Well-Funded – 34%
- Governance – 30%
- Non-profit or For-Profit – 23%
Top 20 Blockchain Consortia
A Blockchain Consortium can provide a plethora of benefits for an organisation so investing in one could be very valuable for business and for procurement provides a collaborative forum to be able to develop procurement blockchain solutions.
For more on blockchain, read more here.
Lance Younger. CEO, ProcureTech