Excerpt:The key characteristic that makes Ethereum a better alternative to Bitcoin is its programmability. Agreements are already inserted in the code so that the transactions run automatically.
While te adoption of blockchain technologies are gradually going on,more and more businesses are interested in the use of them. But what options do they have today? In this article, we’d like to tell you about one of such options that can open new opportunities for companies of different types.
Enterprise Ethereum, which is a blockchain technology designed specifically for enterprises, is built on the Ethereum blockchain. As it can be seen from the Ethereum news now, this technology boasts great popularity for being adaptable and scalable.
For an enterprise, there are a few specifications that should be fulfilled for a technology to be a part of its ecosystem. Enterprises have to manage sensitive information in high volume, track quality, and make themselves accountable to privacy and regulatory standards in the industry. Four factors that are vital for any enterprise are permissioning, privacy, performance, and finality. While privacy and performance are self-explanatory, permissioning means to offer authorized parties to join the network, while finality means that large institutions should be certain about the outcome of the transactions.
Ethereum was introduced in 2015 as a much more flexible and efficient rendition of the Bitcoin payment system’s indigenous blockchain technology. Ethereum is a blockchain network with multiple distributed nodes operating at once and maintaining a ledger to make sure that the certainty of the network is not compromised.
The key characteristic that makes Ethereum a better alternative to Bitcoin is its programmability. Agreements are already inserted in the code so that the transactions run automatically. These are called smart contracts and have limitless formats/conditions and can call on other contracts.
Ethereum is also known for being potent against cyber attacks but at the same time, backing a wide range of applications. A few use cases for Enterprise Ethereum are listed below:
- Supply Chain Management- Can be used to track the in-flow/out-flow of products, validate their authenticity and streamline chain operations.
- Identity Management:- Can be used to confirm the identities of individuals safely, reducing the risk of identity theft and fraud.
- Financial Services:- It can also be used to make payment processes more facile, reduce transaction costs, and enhance transparency. Smart contracts can also be leveraged to automate several financial service processes.
While these were general applications, let us talk about how Enterprise Ethereum will turn out to be a winner for business owners. Here are a few reasons listed below:
- Saving on Transaction Fees: In comparison to its competitors, Ethereum allows people to hold more money as it majorly lessens the transaction costs.
- Faster Transactions: If that was not enough, Ethereum also lessens the time to process transactions. The transactions with ETH are processed within minutes.
- Globalizing The Outreach: With the world getting smaller as technology unites everyone, it is more important to keep one’s business updated. Ethereum allows individuals to acquire products for the business without the problem of currency exchange rates.
- Fraud-resistance: Ethereum is resistant to frauds and scams since it does not need individuals to submit their account data. Moreover, transactions on the blockchain are secure and tamper-proof.
While these are some of the advantages, some challenges about Enterprise Ethereum need to be addressed. You can have a look at some of the challenges below:
- Technical Difficulty:- Since Enterprise Ethereum is a rather complex technology, one has to learn the skills to run it efficiently. Business owners need to have a good understanding of the blockchain to be able to make the most out of this technology.
- Legacy System Integration: The integration of Enterprise Ethereum with existing systems can be a bit difficult, which may require massive investment in the technical infrastructure.
- Compliance with Regulations: With the cryptocurrency world facing issues on the regulatory side, Enterprise Ethereum adoption may also cause regulatory compliance issues. Organizations will have to make sure that the projects comply with the mandates of their respective countries.
In a nutshell, Enterprise Ethereum can be said to offer advantages like higher productivity, improved security, and reduced costs. From a broader point of view, Enterprise Ethereum can help firms steer their companies’ development and growth, however, it does encounter some problems that need to be dealt with before mainstream adoption.