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What is the Enterprise Ethereum Alliance?

A microscopic closeup concept of small cubes in a random layout that build up to form the ethereum symbol illuminated - 3D render

You’ve probably heard of ethereum with regards to crypto trading – but have you heard of the Enterprise Ethereum Alliance? Sure, it sounds like something from Star Wars but it’s actually an alliance of key industry players who are working to modify ethereum’s technology for industry use. Yes, the ‘ethereum’ concept is far more than a crypto token – so let’s find out more.

Slow industry adoption of ethereum

Ethereum is an open source software platform based on blockchain technology that enables developers to build and deploy decentralised applications.

Miners on the ethereum blockchain work to earn Ether, a crypto token that fuels the network. Apart from being a tradeable cryptocurrency, Ether (ETH) is also used by the application developers to pay transaction fees and for services on the ethereum network.

Despite the capabilities of the ethereum network, however, industry adoption has been slow. There’s somewhat of an obvious disconnect between the traditional corporate world and new technologies but the Enterprise Ethereum Alliance is striving to customise ethereum for industry players. The alliance was formed in February 2018 and aims to “define enterprise-grade software capable of handling the most complex, highly demanding applications at the speed of business.”

Members of the Ethereum Enterprise Alliance or EEA

The Enterprise Ethereum Alliance is a non-profit organisation, comprised of more than 150 people and organisations. Members of the EEA come from a variety of business sectors, including technology, banking, government, healthcare, energy, pharmaceuticals, marketing, insurance and ethereum startups. Officials from large and established firms, such as JP Morgan Chase & Co, Microsoft Corp and British Petroleum, are working alongside startup founders to make the ethereum network more appealing for different sectors.

Purpose of EEA – The World’s Largest Open Source Blockchain Initiative

This group of professionals is working to find ways to encourage greater adoption of the ethereum network in varied functions and industries. The alliance has three main goals:

  1. To revamp the governance and implementation of smart contracts making it easier to transfer real-life transactions onto a blockchain.
  2. To develop the business potential of blockchain while retaining compatibility with the public blockchain.
  3. To produce standardised frameworks for technological innovations which should help remove roadblocks standing in the way of developers.

Since many members of the alliance have experience of dealing with government regulations, they can advise and help other members deal with any regulatory bottlenecks that may come up as they scale operations.

The Enterprise Ethereum Alliance is expected to play an important role in facilitating increased adoption of the ethereum network by businesses for their projects. The EEA’s research and development is focused on privacy, confidentiality, scalability and security. The alliance is also working on investigating hybrid architectures for both permissioned and public ethereum networks, besides industry-specific applications.

Disclaimer

If you liked this educational article please consult our Risk Disclosure Notice before starting to trade. Trading leveraged products involves a high level of risk. You may lose more than your invested capital.

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