A consortium is a group of companies that join together, typically to set standards enabling the development of new infrastructure.

While useful between two companies, blockchain technology becomes more valuable as the number of users of the distributed ledger increases.

As a result, blockchain interested companies, regulators and governments are beginning to collaborate and form consortia to set standards, develop infrastructure and execute transactions.

Reasons to join a consortium:

1. Awareness of industry breakthroughs
   Supporting and shaping new developments with the technology, as well as staying up to date with use trends. This will enable organisations to take advantage of breakthroughs first, as well as defend against new entrants.
   
   
2. Lower risk of costs and effort
   Partnering with other organisations reduces risk and makes research economically feasible.
   
   
3. Preparedness for new technology
   Once a platform for distributed ledger is developed, the members of the consortium have a foundation to make the most of the technology.
   
   
4. Effective use of blockchain
   Sharing and transparency are at the core of blockchain technology. Consortia allow companies to achieve the maximum benefit by collaborating together.
   
   
5. Seek operational efficiency
   Participating companies can come together and develop new business models and client solutions, providing a platform for operational efficiency.
   
   
6. Stable framework
   Participating companies may not have the exact same goals, but a strong and stable framework will provide confidence that the operating rules will be followed.

• Read about a real-life blockchain consortium in our eLearning module.