A federated blockchain is a type of blockchain network that is governed by a group of pre-selected nodes or entities, rather than by a decentralized network of nodes. In a federated blockchain, the participating nodes or entities form a consortium and have the ability to make decisions about the governance and maintenance of the blockchain.
Federated blockchains are often used in situations where there is a need for increased privacy, security, or control over the network. They can be used in industries such as finance, healthcare, and supply chain management, where the participating parties want to maintain control over the data and transactions on the blockchain.
One example of a federated blockchain is the Hyperledger Fabric, which is an open-source blockchain platform that is designed for building enterprise-grade applications. Hyperledger Fabric allows for the creation of private and permissioned blockchain networks, where the participating nodes are known and have the ability to make decisions about the governance and operation of the network.
Federated blockchains can offer benefits such as increased security, privacy, and control, but they also have limitations, such as a lack of decentralization and the potential for centralization of power among the participating nodes.
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