What is Ethereum?
Ethereum is a decentralized blockchain-based software with smart contract functionality. It is an open source that is primarily used to support Ether which is the 2nd largest digital coin in the world. Smart contracts and apps enabled by Ethereum run fluidly without being scammed, controlled, and paused by any intermediary interference.
Decentralization of blockchain is possible through its public ledger which is stored via the computers of thousands of volunteers around the world called nodes instead of in a singular place where it would be susceptible to fraud. Before becoming certified, more than half the nodes become involved in the process by utilizing cryptography to verify and secure them through the blockchain network. New blocks to the chain are imputed to help confirm transactions, these involve complex mathematical equations solved by computers.
Benefits of Ethereum in Enterprise
Ethereum was designed to suit cooperation between a collective number of parties for flexibility, openness, and a low cost, where participants are able to create a trusted and immutable transaction record without involving a middleman.
These smart contracts have limitless formats, conditions, and call on other contracts which make Ethereum useful for arbitrating transactional events in supply chains, trade finance, real estate, energy grids, government registries, law, Ethereum gambling sites, and other more diverse sectors.
How do Businesses benefit by offering Ethereum as a Payment Method?
The following are the current capabilities of Ethereum for Enterprise;
The architecture of Ethereum’s decentralized structure better appropriates information and trust allowing network participants to not have to rely on a central body in order to manage the system and arbitrate transactions.
With platforms like Hyperledger Besu, an all-in-one SaaS platform, businesses are capable of easily deploying and managing private blockchain networks rather than coding a blockchain application from the ground up.
The open-source protocol layer by ConsenSys Quorum allows enterprises to build on both private and public Ethereum networks which ensure solutions that fit any potential regulatory and security exigencies.
Mannet proves that an Ethereum network is able to function with millions of users and hundreds of nodes, whilst most businesses’ blockchain competitors are only utilizing networks of under 10 nodes with no reference case for an extensive and viable network. The size of a network is especially essential for enterprise consortia that are sure to surpass a limited number of nodes.
Businesses are able to achieve a state of privacy by generating private consortia with layers of private transactions. ConseSys Quorum will never broadcast private information to network participants. This encrypted data is kept private and exclusively shared with the relevant parties directly.
Performance & Scalability
Ethereum is able to outperform the public mainnet and scale up to hundreds of transactions per second and upwards of that subject to network configuration with proof of authority consensus and gas limit, custom block time, and the consortium networks it is built on. Ethereum is presented with opportunities to improve its throughput in the near future via protocol-level solutions such as off-chain, sharding, and layer 2 scaling solutions such as Statechannels and Plasma.
Confidence that a record of transactions stays tamper-proof and sanctioned via blockchain consensus algorithm offers customizable mechanisms. Ethereum ensures immediate transaction finality and reduces the required infrastructure that the Proof of Work algorithm demands via consensus mechanisms that include IBFT and RAFT for different enterprise network instances.
Ethereum allows business networks to punish corrupt activity and generate rewards around activities that include verification and availability through crypto-economic layers.
Businesses are able to tokenize any resource that has been registered in a digital format on Ethereum, whilst doing so organizations are able to fractionalize previously expand the line of products (provable rare art), monolithic assets (real estate), and unlock new incentive models (data management that is crowdsourced).
Ethereum holds unbelievably high standards with protocols around ENS- human-readable names, ERC20 – token design, Swarm – decentralized storage, and Whisper – decentralized messaging in order to keep the ecosystem from fragmenting. The Enterprise Ethereum Alliances’ client specification 1.0 defines the architectural parts for compliant enterprise blockchain implementation for businesses. The release of version 2.0 has been proposed.
Interoperability & Open Source
Enterprises on Ethereum are not cinched into the IT environment of a singular vendor, where web services customers may operate private networks with Kaleido’s Blockchain Business Cloud. The Ethereum ecosystem embraces contributions to the codebase through EIPs (Ethereum Improvement Proposals).
Which businesses would benefit the most from Ethereum?
- IT departments
- Startups with fresh ideas
- Avant-grade Developers
- Present Bitcoin enthusiasts
- Business innovators, leaders, visionaries, investors
- NGOs, researchers, policymakers, and activists
The Future of Enterprise Ethereum
A permissioned blockchain network was rather time-consuming and expensive less than a year ago when it involved assembling a team of developers that cost you months and millions of dollars in order to write a custom code. With ConsenSys Quorum, the creation and operation of privatized blockchain networks for businesses have become exponentially simplified.
The option value of enterprise Ethereum for the long-term is interchangeability with the public mainnet, global extension, supreme resilience, and high virtue. The mainnet compatibility will substantially reduce spending on IT infrastructure and secure investment for a business.
With a shared infrastructure in the future, assets that were previously frozen between organizations and stowed up will become unlocked. Private and public blockchain networks may well become abolished altogether. While enterprise solutions will hold on to private transactions, whilst working together to build secure, future-proofed IT infrastructures that are shared instead of duplicating and reduplicating infrastructure for one’s own use separately.
The Future of Ethereum
With the level of activity around Ethereum technology, one will swiftly realize that Ethereum is challenging businesses and societal innovation at an international level whilst opening new doors to a class of applications that have never before been seen. Ethereum is presently taking the lead among decentralized application protocols with the support and enthusiasm of its community members that are drawn by the superior capabilities of its platform.
With no illusion that this will not be a step-wise process, Ethereum aims to progressively solve increasingly larger problems while commencing with the more basic and straightforward ones.
Ethereum has proven to be a powerful tool for venturers, enabling them to construct different decentralized applications. Sectors such as banking, public and private institutions have implemented blockchain technologies since the benefits are becoming more and more recognized. The best part is that Ethereum executes smart contracts which are rather convenient in terms of executing contracts that any two parties are able to agree upon.
Now that companies are relying more so on technology, many are embracing blockchain technology and profiting from the list of advantages that come with it. Some of these benefits include simplified transactions and improved security whilst ETH-based smart contracts offer an array of utilities for ventures. Blockchain benefits everyone from consumers to businessmen, which in turn makes it a win-win for all. It is important to be aware that there are still fraudsters out there such as Aurelien Michael who was arrested for scamming buyers of ‘Mutant Ape Planet’, this would not have happened had they chosen to buy Ether instead.