We know that channels facilitate private and confidential transactions between organizations. However, what if you want to have a few organizations on a channel, but still want to keep some of the data private to a subset of organizations participating in that channel. Channels have advantages. However, if you keep creating multiple channels between organizations that require private communication, then you might end up with channel-explosion, which will lead to maintenance overheads. You have to maintain MSPs, policies, and chaincode versions, and this does not allow us to address the use case of having private data for a subset of organizations in a channel. To address the challenge of allowing private data for a subset of organizations in a channel, HLF (from v1.2 onward) offers the facility to create PDCs.