[Ethereum’s integration in the enterprise industry: latest FSS survey results]
The Ethereum Enterprise Alliance's (EEA) latest assessment of the enterprise use of the Ethereum public core network has brought excitement to the blockchain technology and cryptocurrency industry. This report reveals key aspects of Ethereum’s ability to meet the needs of large enterprises.
The EEA’s preliminary assessment believes that, despite reservations, Ethereum is ready for enterprise use. The latest report is more optimistic, highlighting Ethereum’s advantages in a strong ecosystem, security, and decentralization. But the importance of public blockchains to financial services companies seeking global distribution appears to be underestimated.
Global financial institutions such as SWIFT, Standard Chartered Bank, HSBC, Citibank, UBS and JP Morgan are exploring the use of public blockchains. Ethereum’s “merged” upgrade to Proof-of-Stake (PoS) was in response to environmental concerns, although PoS also has its shortcomings.
Two of the biggest challenges facing Ethereum are privacy and scalability. The use of Layer2 has grown significantly, solving scalability and cost issues, but also introducing fragmentation and complexity. Bridge technology enables Layer 2 interoperability, which may be more secure than cross-chain bridges.
Ethereum also plans to further solve scalability issues through sharding technology. Although many enterprises choose private blockchains, privacy concerns are being addressed as zero-knowledge proofs and other privacy-enhancing technologies become more widely used.
Paul Brody of EY noted that the blockchain industry has grown to the point where it cannot return to growth rates of 100% to 200% per year. He emphasized that this is a multi-decade project and expectations need to be adjusted accordingly.
While Ethereum faces challenges around privacy, scalability, and centralization, its continued improvements demonstrate its potential to change the way businesses interact with blockchain technology. Understanding that this is a long-term technological and financial shift that will continue to evolve and adapt based on market and social needs is key.
