With blockchains promising to change how industry works, Ethereum’s versatility and ease at which to build on makes the leading smart contract platform an attractive proposition for big industry.
This is evident with the formation of Enterprise Ethereum Alliance (EEA). A body of large industries working with Ethereum to integrate smart contract technology, but what is the EEA’s role?
Smart contracts enable parties to conduct transactions, and automatically finalize deals. It negates the necessity of human labour, and makes business and life in general, much faster, cheaper and more secure. And the EEA is the link between the new decentralized world and legacy industry.
Why Is Blockcahin Adoption Slow?
Despite the promise of smart contracts and decentralized ledger technology, adoption of Ethereum and blockchain in general has been slow. However, the same is true for the uptake in the Internet by big business back in the early 1990s.
Some might say, this is down to a disparity of ideals. Ethereum is built on a transparent and decentralized platform, where no trust is needed. Whereas, corporations are the extreme opposite: a pyramid system in which authority only comes from the top, and trust has to be earned.
But corporations are interested, and Ethereum is absorbing most of the interest, as we have seen with the formation of the EEA.
Enterprise Ethereum Alliance
The Enterprise Ethereum Alliance (EEA) is the alliance of big industry players interested in integrating Ethereum into its infrastructure. The aims of the EEA is to ‘define enterprise-grade software capable of handling the most complex, highly demanding applications at the speed of business.’
As we can see in the image above, the EEA has already attracted some of the biggest players in a host of different industries. Microsoft, JPMorgan, and BP to name a few are already playing with Ethereum, and the alliance is growing.
Anyone who’s been involved in the crypto space for a few years will know how seemingly slow things have moved. The truth is, however, that things are evolving at rapid pace, and although Ethereum protocol updates are lagging, the interest in Ethereum is growing.
Ethereum is an exciting prospect, but for it to gain mass adoption it has to scale, but this is made much trickier because of its decentralized network and its inbuilt economy.
Not only that, regulatory framework throughout the world needs to be ironed out. Smart contract technology that deals with cross-border financial transactions is an extremely sticky point.
All governments will want their cut of transactions taking place in and out of their jurisdictions, and this headache that will no doubt widen as adoption grows will need to be ironed out across several industries, especially in highly regulated sectors like the finance industry.
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What Is The Role of The Enterprise Ethereum Alliance
The EEA has some of the world’s biggest enterprises working with Ethereum, and integration is happening, but the role of the EEA is to help Ethereum through some trickier parts that a young, tech startup wouldn’t usually be hampered with.
Its first role will be to govern the standards of the applications within the EEA. The alliance will design a framework of industry-wide smart contract governance, with an aim to have a clear outline of how the smart contracts will work within the EEA private chains. Thus, making it easier to transact cross-border on the Ethereum blockchain.
As well as this, the EEA is there to help speed up adoption, with an aim to enhance the Ethereum public blockchain. This is critical for the growth of Ethereum and is the only way real industry-wide adoption of smart contract technology can take place on a blockchain.
Regulatory red tape is something the Ethereum Foundation won’t have much clout in. Through their years of experience dealing with governments, the EEA members have a better understanding of the regulatory restraints and have developed mutual respect.
Ethereum is really a tech startup that wouldn’t normally be taken seriously by such big industries and governments, but partnering with some of the biggest corporations, it will help Ethereum when dealing with governments.
Ethereum is a baby that is just beginning to crawl. It has already come up against some major roadblocks, and these will need to be sorted before we see any industry-wide adoption.
But with the EEA and the main developers at Ethereum the roadblock is clearing and the first steps are close. As we saw with the adoption of the Internet back when, it takes time and trust for established industries, but they know they have to adopt it, or lose relevance.
Author: Tommy Limpitlaw