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The authors of a new report claim that Ethereum (ETH)<\/a>\u00a0is \u201cready\u201d for use in the world of business \u2013 albeit with \u201csome caveats.\u201d<\/p>\n The report<\/a> was compiled by the Ethereum Enterprise Alliance<\/strong> (EEA) \u2013 a business-focused affiliate of the Ethereum Foundation<\/strong>. Its authors claimed that while the \u201cpieces are in place\u201d for \u201cthe safe and productive use of Ethereum as a business platform,\u201d the aforementioned pieces do not yet \u201cnecessarily fit together seamlessly.\u201d<\/p>\n In a press release, the EEA\u2019s Executive Director Dan Burnett was quoted<\/a> as stating that the body\u2019s \u201canalysis and examples\u201d showed that \u201cthe pieces are now in place in the Ethereum ecosystem for the safe and productive use of this technology as a business platform.\u201d<\/p>\n The report\u2019s authors, who provided a number of case studies to back up their claims, wrote that Ethereum was a \u201csafe and productive\u201d business platform that has \u201cmatured greatly\u201d and was now a \u201cbattle-tested and \u201cglobally significant settlement layer.\u201d<\/p>\n They explained that the \u201cimportant thing for businesses to keep in mind in this context is that Ethereum is a complete ecosystem,\u201d writing:<\/p>\n \u201cCompared to its early days, there is a rich assortment of standards, tools, providers, and platforms that businesses can turn to.\u201d<\/p>\n<\/blockquote>\n In addition to the mainnet, sidechains<\/a> and Layer 2<\/a> (L2) solutions help provide the \u201csustainability, performance, and privacy\u201d that some companies will likely hanker after.<\/p>\n Although they conceded that the \u201cregulatory environment for digital assets and blockchain technology (as opposed to cryptocurrencies)\u201d was still far from stable \u201cin many respects,\u201d they claimed that this \u201cneed not be seen as a blocker.\u201d They added that \u201cmany jurisdictions\u201d now \u201csee the potential of blockchain and look favorably on it.\u201d<\/p>\n While all the ingredients are in the kitchen, though, no chef has yet managed to blend them together, the authors indicated. Critics have often claimed that Ethereum suffers from scalability problems.\u00a0<\/p>\n The authors admitted that scaling solutions and other tools are \u201crelatively new, and carry the risks associated with any new technology or platform.\u201d<\/p>\n<\/blockquote>\n They also mentioned the issue of interoperability, admitting that the world was \u201cyet to see the rise to prominence of comprehensive development and deployment suites that are often to be found in more mature technologies and that can be used to seamlessly bind all the pieces together into a whole.\u201d<\/p>\n But, they claimed, developers were aware of this issue. The authors asserted that the situation on this front would \u201cimprove over time.\u201d<\/p>\n What Ethereum can offer its users, the authors continued, is flexibility \u2013 in the form of multiple \u201coptions for setups based on business type and needs.\u201d<\/p>\n<\/blockquote>\n For instance, they explained that while the Ethereum mainnet \u201cscores high on usability and interoperability for tokenization,\u201d projects that require high levels of performance and regulatory compliance might prefer to work with Layer 2 solutions or sidechains \u2013 or even build an Ethereum-based private network.<\/p>\n In the payments sphere, too, the authors claimed that moving away from the mainnet could provide solutions for \u201chigh-volume use cases,\u201d including retail, or industries \u201cwhere privacy and regulatory compliance are high priorities\u201d such as the financial services sector. Again, this would allow businesses who \u201crely on L2s or sidechains to reduce network costs and gain scalability.\u201d<\/p>\n They wrote:<\/p>\n \u201cIn its early days, Ethereum promised to support decentralized business and collaboration through, among other things, tokenization and smart contracts. Today, this promise is becoming a reality.\u201d<\/p>\n<\/blockquote>\n Furthermore, they claimed that there was no shortage of incentives for companies to \u201cexplore\u201d Ethereum-based decentralized business models and \u201cprocesses of the type Ethereum makes possible.\u201d<\/p>\n They claimed that tokenization and smart contracts allow digital assets to be \u201cuniquely and verifiably represented.\u201d Smart contracts, they argued, mean that \u201cagreements about these digital assets can be programmed, validated, and executed by machines more quickly and accurately and cost-effectively than by humans alone.\u201d<\/p>\n This, they said, would allow companies to slash overheads, as well as develop new \u201ccost-effective\u201d products and services. – The Compromises and Benefits of Ethereum Switching to a Proof-of-Stake Network<\/a>\n
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Learn more:\u00a0<\/strong>
– Vitalik Buterin Confirms Post-Merge Ethereum Centralization Concerns, Urges Not to ‘Overly Catastrophize’ It<\/a>
– Top Blockchain Non-Financial Applications According to Vitalik Buterin<\/a><\/p>\n
– Major Bitcoin & Crypto Companies Warn of ‘Extreme’ Risk in Proof-of-Stake Systems<\/a><\/p>\n<\/p><\/div>\n