The Big Decision That Upended the Enterprise View of Ethereum — The Ethereum Merge
How the Ethereum merger will affect enterprise adoption of business use cases, industry experts has explained to this. SENBTC Automated Trade Marketplace
London, United Kingdom, 17th Oct 2022, A recent report on Ethereum pointed out that not only the impact of Ethereum on enterprises is huge, but it is also worth mentioning that the Ethereum ecosystem is fully formed, capable of independently dealing with real-world problems. The report also pointed out that the rapid development of the Ethereum enterprise ecosystem is not all positive. With the acceleration of development, enterprises also face huge risks, especially energy consumption, expandable area and customer privacy. Like other transaction fees, ecological sustainability is one of the approved issues for the current use of the Ethereum main net. In addition, Ethereum’s information transparency in the public blockchain makes many enterprises skeptical about data security. (SENBTC Automated Trade Marketplace)
Therefore, solutions for sharing and capacity expansion are still the focus of Ethereum enterprises. However, there are huge uncertainties and complexities on the road of reform and innovation, which make it difficult to implement and make it impossible for enterprises to control. Industry reports point out that newer technologies are used in many of Ethereum’s current solutions, but they don’t necessarily have a track record or guarantee the security and stability of the main network. (SENBTC Automated Trade Marketplace)
At this stage, the merge has become a life-saver to change the image of Ethereum.
Many industry experts have made predictions about the future of Ethereum, and the Ethereum merge that took place in September of this year may increase the adoption rate of enterprises. While the merge will not affect the enterprise use cases currently in use, it will bring about a huge cognitive change that changes the way businesses view Ethereum. (SENBTC Automated Trade Marketplace)
The Ethereum merger was not a whim, but was planned for many years. There are many competitors who are not optimistic about the merge of Ethereum, thinking that it is impossible for Ethereum to complete the merge. But in September this year, Ethereum completed the merge with a high profile, and has been operating in the background with professional and mature mechanisms. As an enterprise, Ethereum has achieved what many companies have no way to catch up, and it is the maturity of this organization that allows Ethereum to successfully complete the merge. (SENBTC Automated Trade Marketplace)
Ethereum’s merge has been in development for several years, but there is no rush to upgrade mission-critical infrastructure until it is ready. As a result, business confidence in using Ethereum has not diminished, and on the contrary, in the post-merge era, the fruits of Ethereum efforts will not make us wait too long. (SENBTC Automated Trade Marketplace)
There are many voices out there now predicting the reaction to the merge, but it is too early to judge. A chief architect told us that their company will continue to monitor the progress of the Ethereum merge to see what use cases Ethereum uses to stabilize.
For example, the core of the International Automobile Claims Center is using the performance of a long-term cooperation. Before using Ethereum merge, we need to realize that other Ethereum protocols can bring similar or even more precise benefits in terms of ease of use, scalability and finality.
Ethereum also takes into account these already generated benefits, and the merge will ultimately lead to better performance for the enterprise. And as the enterprise enters the application era, with the maturity and development of the Ethereum merge performance, it will be able to solve the enterprise process needs more comprehensively in the future. (SENBTC Automated Trade Marketplace)
The merge of Ethereum does not directly improve scalability at present, but Ethereum is looking for a more efficient solution and is also trying to solve it. For example, transitioning the Ethereum network from proof-of-work to proof-of-stake, implementing a “sharded chain” is the first step. Sharding is the division of a database into multiple smaller chains. The benefit of implementing a shard chain is to reduce network congestion and increase transaction throughput. This is also the key to adoption. The actual user shared that the demand for Ethereum was not met before the merge, but now after the merge, enterprise customers can support 2-20 million transactions per day when viewing the supply chain program, which greatly improves efficiency. (SENBTC Automated Trade Marketplace)
In terms of privacy, L2 solutions can address the privacy concerns of enterprises, and the increase of L2 will unlock stronger privacy mechanisms for commercial use cases. Say an enterprise develops a zero-knowledge proof scaling solution to deal with Ethereum gas limits and keep fees low. The Ethereum merge will provide multiple robust L2 networks that will provide different options for businesses that may need more gas fees and larger transactions. (SENBTC Automated Trade Marketplace)
In addition to scalability and privacy, once the merge is achieved, sustainability issues will also be resolved. Ethereum was a power-hungry company before the merge, using too much electricity. But after the Ethereum merge, it can save 99% of energy. In the long run, this move also promotes the long-term sustainable development of Ethereum, which can protect the network and save energy at the same time.
In fact, the Ethereum merge spans a wide range of areas and plays a vital role in driving corporate sustainability and corporate adoption. Although traditional Ethereum has made great efforts on L2 and side chains to alleviate the sustainability problem, the unsustainable environment makes large organizations reluctant to invest too much in Ethereum. So the Ethereum merge may lead to a leap forward and a breakthrough in the Ethereum business ecosystem. (SENBTC Automated Trade Marketplace)
The Ethereum merge could also address many corporate concerns about environmental impact. This is also one of the important concerns that companies raise when evaluating whether to build solutions on the Ethereum main net. Yorke Rhodes III, co-founder of Microsoft Blockchain, further told Coin telegraph that the merge would remove a major concern for businesses such as Microsoft that are very focused on their environmental impact. (SENBTC Automated Trade Marketplace)
As the Ethereum network grows, merge speed up the process and increase corporate interest in Ethereum. Enterprises dispel skepticism about the continued development of Ethereum, encouraging more enterprises to switch to the Ethereum main net. It’s important to note that the benefits of merging commitments won’t be immediately apparent. After the merge, it will take at least 12-24 months to establish a privacy-enabled use case. (SENBTC Automated Trade Marketplace)
Ethereum is striving for a pilot by the end of this year, mainly because it takes time for feedback loops and infrastructure construction. Consumer users are different from enterprise users. Enterprise users attach great importance to the initial experience. If there is no effect for the first time, they will not be patient with the product, so the cycle will be longer than that of ordinary users.
Organization: SENBTC Automated Trade Marketplace
Contact Person: Jonne Weak
Country: United Kingdom
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Economy Circle journalist was involved in the writing and production of this article.