Shadowbox uses Consortium or Federated Blockchain technology to secure Registry logs. This type of Blockchain security tries to remove the sole autonomy which gets vested in just one entity by using private blockchains.
So here instead of one in charge, you have more than one in charge. Basically, you have a group of companies or representative individuals coming together and making decisions for the best benefit of the whole network. Such groups are also called consortiums or a federation that’s why the name consortium or federated blockchain.
For example, let suppose you have a consortium of world’s top 20 financial institutes out which you have decided in the code that if a transaction or a block or decision is voted/verified by more than 15 institutes then only it should get added to the blockchain.
So it is a way of achieving thing much faster and you also have more than one single point of failures which in a way protects the whole ecosystem against a single point of failure.
In such type blockchain:
—>Members of the consortium can run a full node and start mining.
—>Members of the consortium can make transactions/decisions on the chain.
—>Members of the consortium can review/audit the blockchain in a Blockchain explorer.
For the Consortium or Federated Blockchain only selected members of the consortium can run a full node, selected members of the consortium can make transactions and selected members of the consortium can review/audit the blockchain.
We require more types of blockchain because keeping such blockchains solves problems such as:-
- One no longer need to rely upon huge servers.
- They are cost effective and fast.
- They reduce the need for more trusted parties because you can implement smart contracts instead of them.
- Gives options for rights and access management while leveraging the same blockchain technology and reaping its benefits.
- Reduces redundant work.
- Distributed consensus between interested parties becomes fast even though you are geographically segregated.
Because of all these, I think different types of blockchain will be used for different type of industries as and when required.
Where we require privacy and control, private & consortium blockchain will be a good option and where we require openness, as well as censorship resistance public blockchains, are a must need.