Ethereum can improve your businesses’ scalability ― but that’s not all

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As technology evolves, businesses seek innovative ways of providing products and services according to client’s requirements. However, not all companies are ready to change their outdated practices and adopt the future of business ― blockchain technology. After all, the complexity of the subject and the reluctance of worldwide cryptocurrency adoption might scare investors and managers, but innovation cannot be done without risks.

Besides this objective overview, some companies have already adopted blockchain technology and are now accepting cryptocurrency payments, so we can say that the future is now. These businesses are now more scalable and performant and provide high standards for their customers, primarily since many people are investing in Bitcoin and Ethereum. 

But how can cryptocurrency benefit a company?

What is Ethereum?

Ethereum is the second-leading cryptocurrency and the most known blockchain technology in which users can write and code their own applications and contracts. Through its course on the market, Ethereum has built a strong community of crypto lovers and developers who want to make the world easier through blockchain technology. Some of the innovative programs you can find on Ethereum include:

  • Smart contracts that automatically execute on the blockchain and make transactions faster and safer;
  • DApps are programmed apps with which you can use built-in payments freely from censorship and anonymously;
  • DAOs are decentralized organizations where people can gather funding or raise money for social causes;
  • NFTs allow artists and creators to sell their artwork in a safe and decentralized environment;

Besides being the place where you can create and develop almost anything, Ethereum can also be used as a cryptocurrency, with Ether as its token. Learn more about the ETH price and what you can do with it if you want to get an in-depth idea about cryptocurrency for your business. You can use Ethereum for financing purposes, gaming, management and advertising, so it covers an array of transactions and actions.

Leaving that for another article, let’s see how a business can be improved by using Ethereum as a blockchain.   

How can Ethereum improve business scalability?

After the last Ethereum update called the Merge, the founder of the blockchain said that the following issue to be addressed regarding Ethereum is scalability. This means he aims to make the blockchain process much more data than it’s currently capable of. So, through the Merge, developers will be able to build second-layer platforms that can be more optimized.

However, Ethereum can provide scalability through sharding (distributing one set of data across multiple databases) and layer two solutions with which the blockchain can scale up to hundreds of transactions per second or more depending on the network, depending on configurations. By allowing a business to meet increased demands, Ethereum can be used in many industries as a way to store data and perform transactions quickly and safely.

Scalability is one of the most important features of a successful company since it allows it to grow and generate reviews without being tremendously affected by external conditions and events. Therefore, blockchain technology contributes to a business’s improvement by implementing cryptography into processing transactions and offering more than cloud services. But this is not the only thing a company can benefit from using Ethereum technology.

Other ways Ethereum can benefit enterprises

Ethereum is both profitable and valuable for investors and clients because it provides an array of services and programs that can fasten any processes while granting data security and safety. Besides that, let’s discuss three crucial improvements Ethereum could contribute to.

First, the Enterprise Ethereum Alliance is the world’s largest blockchain initiative, where businesses benefit from a private network. This environment addresses the specific needs of an enterprise, such as increased privacy, performance and scalability, which is separated from the public blockchain. Therefore, it is more secure, developed and unified. This is only the first thing that a business can take advantage of.

Secondly, Enterprise Ethereum has the lowest-cost business model and is deployable, meaning that its codebase eradicates vendor lock-in and dependence. So any company can set up a private and permissioned Ethereum network, as well as deploy network solutions in a matter of minutes.

Finally, a crucial factor that makes Enterprise Ethereum the perfect place for a business is digitization. The advanced platform can help companies tokenize their assets and, therefore:

  • Convert fiat money into digital assets through which a company can achieve high levels of security, save time and open up new paths of revenue;
  • Try out new models of investment and equity to fractionalize ownership of real-world assets and make equity available to all participants on the platform;
  • Adopt incentivization and transparent governance systems by using tokens as incentives to reward contribution, development and participation;

The future of Ethereum in business

Since businesses suffered the most during the pandemic because hackers breached their security, it’s safe to say they need another security solution. In this case, blockchain technology is the best currently known solution for helping companies maintain data and information without using cloud services.

Ethereum provides security through its computing power that users contribute to verify and secure every transaction, therefore making it impossible for any third parties to interfere or for hackers to break the system. Moreover, since the Merge changes Ethereum’s consensus system with a proof-of-stake one, the blockchain is more resistant to attacks since users have to use less computational power to complete transactions. POS also allows miners to take turns validating the next blocks in the chain, which makes the whole transactional process safer and faster.

Let’s not forget that businesses could create DAO (decentralized autonomous organizations) that allows contributors to own the company without centralized leadership. It’s also a safer place to commit funds, accept donations and create ventures and grants.

Final takeaway

Ethereum has paved the way toward technology inclusion and cryptocurrency adoption. However, it can be introduced in the world of businesses beyond accepting crypto payments through creating private networks on the blockchain where enterprises are safer and can perform better. What is your opinion on blockchain businesses?

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