What is Federated Blockchain?

A federated blockchain, commonly known as a consortium blockchain, is a private blockchain network managed by multiple entities wherein each participant retains special privileges. Controlling entities typically participate in the consensus process as a transaction validator (by hosting a node or several nodes) and have permissions to view certain types of data, often via specialized authentication systems. Consortium blockchains are a less decentralized Distributed Ledger Technology (DLT) that maintains some benefits of distributed systems for enterprise and government use cases.