# Federations

Source URL: https://support.dxp.blockstream.com/education/glossary/federations
Updated: 2026-05-26T17:14:35.000Z
Letter: F

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Refers to a group of participants collaborating to manage a network, striking a balance between centralization and decentralization. In federated blockchains, like the [Liquid Network](https://support.dxp-staging.blockstream.com/education/glossary/liquid-network), a distributed group of members sign blocks and maintain the network. Unlike exchanges or custodial wallets, federations prevent a central point of failure, as the responsibility is shared among multiple entities, providing increased security and resilience compared to a single centralized system.  
  
Learn more about federations by reading the _Strong Federations_ [whitepaper](http://blockstream.com/strong-federations.pdf).

![](https://storage.googleapis.com/dxp-staging-assets/content/glossary/FO82350175AC4_9-2.png)

Navigation: Blockstream Help Center > Education > Glossary > Federations

## Related Terms in This Letter
- [Fork](https://support.dxp.blockstream.com/education/glossary/fork)
- [Federations](https://support.dxp.blockstream.com/education/glossary/federations) (current)
- [FROST](https://support.dxp.blockstream.com/education/glossary/frost)
- [Fedimint](https://support.dxp.blockstream.com/education/glossary/fedimint)
- [FUD](https://support.dxp.blockstream.com/education/glossary/fud)
- [Fee Estimates](https://support.dxp.blockstream.com/education/glossary/fee-estimates)