The acquisition of blockchain in manifold industries has increased remarkably. It has made enterprises enter the blockchain sphere to gain a competitive edge. Ethereum has already established itself as a distinguished name in the blockchain development space by providing a cutting edge networking environment.
Since its inception, Ethereum blockchain app development has enabled developers to build only public blockchain applications. As a result, enterprises looking for permissioned or private blockchain solutions have remained reluctant to explore Ethereum.
However, now, businesses can create enterprise-ready blockchain solutions with Ethereum Enterprise and they too can conquer the enterprise world in return. In this chapter, we are going to dig deep into the rudiments of Ethereum Enterprise.
Ethereum Enterprise refers to a defined set of guidelines and technical specifications to accelerate the adoption of blockchain technology among enterprises. The specifications provide businesses with the ability to leverage both Ethereum-based private chains and the public mainnet.
It enables developers to create private or permissioned blockchain versions of the public Ethereum codebase. Although these private chains remain separated from the public blockchains, they can still have characteristics of the public Ethereum.
There is not any single product for the Ethereum Enterprise. Instead, blockchain development services providers offer custom Ethereum enterprise. They modify the existing Ethereum client application according to the enterprise needs.
It means that different private networks can have different outcomes based on specific needs. For instance, some enterprises may have scalability requirements for their enterprise Ethereum network, while others may require other functionality upgrades. Those functionalities can include network performance, scalability, governance, privacy, permission and so on.
How It Works
Ethereum Enterprise stays true to their public blockchain network. However, there are added permission features along with identity management to offer a permissioned network. Moreover, it increases the privacy level with private P2P transactions to increase scalability and performance. Furthermore, it also introduces different consensus algorithms rather than the Ethereum Proof of Work.
In view of this, Ethereum Enterprise do not face the same problems as the public Ethereum, such as privacy and scaling issues. Furthermore, they transact even faster than the typical 15-20 transactions per second speed of public Ethereum.
How they do this is because in Ethereum Enterprise, you can change the network size, block size, and even the gas limit. It’s not that you have to stick to gas to run the blockchain network, but it’s still possible to keep this feature.
Another amazing fact is that the network sizing really makes a huge difference as many enterprises have a closed environment. Furthermore, this means it will only allow minimal participants in the system. That’s why you get more scalability and privacy in Ethereum Enterprise.
The Enterprise Ethereum Alliance- EEA(we would get there) is the front runner for Ethereum Enterprise Solution. Moreover, according to them, Ethereum Enterprise is nothing more than just an extension to the public Ethereum. Therefore, it means public Ethereum will get a lot of add-ons and have enterprise solution extensions to make work privately as well.
So, in this case, they are adding authentication for entering the network. Also, they are using permissions for viewing the ledger. It is because not all the participants would be able to see what other users are transacting in the ledger.
Enterprise Ethereum Alliance
Enterprise Ethereum Alliance EEA is a member-driven organization that offers open-source development of Enterprise Ethereum according to organizations’ needs. It is a non-profit organization launched in March 2017.
At the moment, EEA has 300+ member companies under their bags. All of these members collaborate to advance the Ethereum implementation within industries. Not only that, but they also have their influence in 45+ countries along with having 1400+ individual members.
In addition, to streamline the enterprise Ethereum project, the enterprise Ethereum alliance members have 19 legal advisories and professional industry groups. In that connection,one would get the best of the best tech support with legalizing Ethereum Enterprise Solutions.
The main targets of Enterprise Ethereum Alliance members is to harmonize consumers and businesses with interoperability worldwide. Other ones are
- Open-Source Standard Instead of a Product
- Govern and Facilitate Cross-Industry Development
- Evolve Side by Side with the Public Ethereum
- Use Existing Standards
Ethereum Enterprise blockchain is low-cost, flexible, open, and suited for business between multiple enterprises. When it comes to coordinating data, it does act like a typically distributed layer.
However, it has some drawbacks. Some of the biggest concerns from enterprise businesses for Ethereum include:
Scalability: The primary problem with Ethereum is scalability. Transactions are still very slow, as Ethereum’s public blockchain can only process roughly 15-20 transactions per second (TPS) compared to the 45,000 processed by Visa. Enterprises require a very high throughput of transactions, and Ethereum can not yet offer that on its public mainnet.
Uncertainty: Another major drawback to Ethereum for enterprise is that the project is still being heavily developed, and there can be some breakdowns in the system along the way. For instance, in order for Ethereum to scale, it must transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus algorithm in the Ethereum 2.0 upgrade. This is a very serious change — and if it doesn’t go smoothly, the whole system can crash.
Competition: While Ethereum is leading the way in enterprise blockchain adoption, it is competing with other blockchain protocols that claim to be more scalable than Ethereum. Such competitors include EOS, Cardano, Stellar, TRON, and others.
The enterprise version of the Ethereum blockchain can significantly influence real-world environments. Also, the permissioned platform seems to have no issues when it comes to innovation. While the public Ethereum has already established itself in the Ethereum blockchain application development space, it is time for its private platform to perform.
What do you think of this article? Let’s hear from you in the comment section!
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