26 June 2020
Blockchain technology and cryptocurrencies are growing at a breakneck pace. It can be challenging to keep up with the day-to-day changes of this fast-paced world.
Since its creation, people have invested millions of dollars into crypto and blockchain. Truth is, crypto is a space full of stories of failure and success.
Yet, all these success stories have one element in common: cooperation. There is one collection of industry leaders that is transforming blockchain for mass adoption in the business world: Enterprise Ethereum Alliance.
In this article, we will explore Ethereum and how Enterprise Ethereum Alliance (EEA) plays a critical role in Ethereum blockchain scalability.
What is Ethereum?
In case it’s your first time hearing about Ethereum, it is an open-source blockchain-based platform for smart contracts and decentralized applications. Launched in 2015, Ethereum has a native cryptocurrency called Ether. Ether is a crypto-fuel used to perform operations on the Ethereum blockchain.
Over the years, the Ethereum blockchain has grown to become one of the most popular blockchains in the crypto space. However, even with its many advantages, scalability is still a big problem. Many businesses and companies are still slow to adopt this revolutionary technology.
Why Have Companies Been Slow to Adopt Ethereum?
Blockchain-based Ethereum is built on a philosophy of transparency and decentralized authority. On the other hand, businesses and large corporations are built around privacy and permissioned access to their information. It is these differences that hinder the massive adoption of Ethereum blockchain.
What is the Enterprise Ethereum Alliance?
Enterprise Ethereum Alliance is a unique non-profit organization whose aim is to customize Ethereum for various industry players.
Currently, the Alliance has already partnered with more than 200 companies across the globe. The companies range from small ventures to Fortune 500 companies and industry giants like JPMorgan Chase &Co, Microsoft Corp, and British Petroleum.
The Alliance was formed and launched in 2017. It was launched with 30 founding member companies that include JPMorgan, Microsoft, Accenture, CME Group, Chronicled, ConsenSys, among others.
The Role of Enterprise Ethereum Alliance
To ensure a smooth transition of businesses into the blockchain space, the Alliance will have to become a Governance and standard body. Customizing smart contracts requires permission and access to the business’s data. Not many companies are willing to share their confidential data.
The Alliance, with input from members, will design a framework for industry-wide governance and implementation of smart contracts. This will make it easy to transfer real-world transactions into a blockchain like Ethereum.
2. Enhance public Ethereum:
Smart contracts are pegged to change the way businesses conduct business. With speed, security, and efficiency, the contract can easily eradicate the problems plaguing how businesses currently operate.
However, for smart contracts to reach the much-hyped heights, its public blockchain needs contribution from a diverse set of stakeholders. New features can be added to the Ethereum blockchain-based on use cases developed in house.
3. Boost rapid technical innovations:
With the Alliance comes familiar frameworks and standardization of technical requisites. This makes it easy for developers interested in participating in the Ethereum ecosystem, which paves the path for technological advancements.
Why Enterprise Ethereum Alliance (EAA) Is the Future
EAA’s goal is to build best practices that will bring the Ethereum blockchain into the real world. The best part of this proposal is that all its funding comes from the association’s own members. These rotating members comprise legendary companies like Microsoft, J.P. Morgan, Intel, and other major players.
These companies seek to utilize Ethereum’s open-source platform and adapt it to their operations. This necessitates implementing large-scale and interoperable blockchain operations.
To help different companies with different needs, The EEA drew up two different proposals: The Token Taxonomy Initiative and the EEA Mainnet Initiative.
EAA Token Taxonomy Initiative
The token taxonomy initiative aims to speed up the adoption of tokens. Companies will have an easy time understanding tokens and how they can transform their company’s operations for the better.
This will allow companies to understand better crypto and how they can implement it into their everyday operations.
With this in place, a series of workshops are offered along with a code repository. After this, companies will be able to create their own tokens to meet their needs.
EAA Mainnet Initiative
The Mainnet is a technical working group. Its job is to study how industries and ecosystems function in the blockchain. This seeks to understand how the public network can fit the market’s needs. This finally aims to configure how to bring more companies to the crypto space with a more precise scope.
EAA is not alone at working on standardizing blockchain technology and development. Some of its competitors include;
Started in 2015 by the Linux foundation. Hyperldeger is an open-source collaborative effort created to advance cross-industry blockchain technologies. It has received contributions from IBM, Intel, SAP Ariba to support its work and projects.
R3 is an enterprise software firm focused on building and empowering the next generation of global financial services technology. It leads a consortium of more than 200 members. They range from financial institutions, banks, trade associations to fintech companies.
Enterprise Ethereum Alliance might still be new in the crypto space but might just offer one of the many ways of tackling Ethereum blockchain’s scalability problems. Time will tell if the EAA will flourish or not. As for now, the future looks bright for EAA and Ethereum.