More than 90% of the first generation of Blockchain applications will be developed within a consortium.
A Blockchain Consortium can be defined as a network made up of multiple organizations maintaining one system. The organizations collaborate, advancing on the capabilities of Blockchain technologies, their adoption into their industry, raising industry standards, and showcasing the functionality of commercial Blockchain Projects.
The organizations that make up a Blockchain Consortium can be made up of organizations from the same or similar industries. An Enterprise Blockchain Consortium can be defined by three types: Vendor Based, Industry Consortium, and Company Led.
A vendor Based Consortium is led by Vendors of any size, who try to sell their solution to the Blockchain Projects’ participants. This Type of Enterprise Blockchain Consortium must be built on a flexible business model, which can offer a vendor-focused Blockchain infrastructure network.
For Vendor Based consortiums, close attention must be spent on start-up organizations and small vendors as it is common for start-ups and vendors to fail at this point in maturity. To ensure this doesn’t happen, assurance must be made so that when a vendor does fail it does not bring about the downfall of the Blockchain project.
An Industry Consortium is made up of companies that are in the same industry or from similar industries who form a collaborative consortium. The main purpose of this project is to create the standards and authority needed to have a successful Blockchain adoption by other participants. This type of project can be utilized by companies, vendors, and even academic institutions as any vendors that abide by the standards and authority of the Project can collaborate with others.
A company Led Consortium is made up of companies operating with other companies in the same industry. Together, they define and collaboratively work together to build the business model and set the guidelines for implementation. Within a Company led Enterprise Blockchain Consortium, there are four types of Company Led Blockchain Consortiums:
Collaborative – Companies unanimously agree on working together, splitting any costs and rewards fairly
Sponsorship – The leading company in the consortium sponsors the work of smaller participants in the consortium
Financial Incentives – Some companies will join a consortium if they receive monetary benefits while they are a part of the Project.
Top-Down – The largest companies in the Project require the partners that work with them to utilize the Blockchain Infrastructure Network or risk losing business and jeopardizing the relationship with the larger companies.
For more information on how to start or advance your Enterprise Blockchain initiative, please contact us at firstname.lastname@example.org