Since the launch of the Enterprise Ethereum Alliance in late 2014, the need for enterprise-grade eCommerce has grown tremendously. The primary drive behind this was the realization that enterprises needed a safe way to move the value into and out of their data centers, while maintaining security and scalability at the same time. A novel approach was needed in order to facilitate this movement, which is where the concept of an Enterprise Network emerged. Through this article, you are provided an overview of what is involved with developing an Enterprise Network, as well as the benefits that come with embracing this technology.
A primary advantage of utilizing the ethereum protocol is that it offers complete privacy and permission-based network connectivity. In contrast to the traditional web-based payment system model, with which eCommerce is defined, the Ethereum network allows for complete anonymity and censorship. This feature is one of the primary reasons that enterprises are able to reap the benefits of this cutting-edge technological innovation. With zero charges on transactions, and zero reports of fraudulent transactions, there is no need for consumer protection agencies to be concerned with this aspect of eCommerce.
In addition to offering complete privacy, eCommerce enterprises can also count on support from several top-notch teams that have developed cutting-edge technologies. One such team is Vitalik Buterin, who is one of the chief developers of the ethereum programming language. With his extensive background in programming language theory and design, he has been able to build a comprehensive package called Solidity, which is designed to simplify the programming model used in the ethereum framework. Additional eCommerce developers that have been involved in the designing and implementation of the Solidity software include Jon Popper and Aleksey Shipanove.
Another group that is playing a key role in the development of eCommerce is that of the companies who are providing dApps, or what is commonly referred to as digital applications. These are the organizations and developers who will be developing both the interfaces for eCommerce and the underlying cryptography and contracts that will govern the transfer of currency in the network. The most well-known example of an organization developing its own dapps for eCommerce is Google. Under the name Google Merchant Account, the company is developing a system for eCommerce wherein its merchants will be able to transact in real time.
Despite the popularity and wide application of eCommerce, it is still relatively early in the evolution of this technology. This is largely due to the fact that most businesses are still using the outdated payment channels that were first introduced into the market. As a result, they are still forced to use the more flexible and simpler payment channels provided by the previous models. The flexibility provided by e Ethereum, however, may pave the way for the development of better and newer payment channels. If the trend continues, there is a great chance that the cost of using decentralized networks in the long run will come down significantly.
The second reason why it is expected to soon emerge as the leading smart contract platform is because it has many advantages over the older models. One of these advantages is the use of smart contracts. Unlike previous smart contract systems such as the Counterparty, the ethereum smart contract does not need to be implemented by a third party in order to be used. Users can download the corresponding software from the company’s website and begin publishing transactions right away.
Because of the use of smart contracts, there will be significantly less fees involved. Since the entire transaction happens inside the network, there is no need for users to pay a commission to any third party. With e Ethereum, you can expect to pay a reduced rate of roughly two to ten percent for each transaction, depending on the volume of the transaction. Since all transactions happen within the network, there is no need for users to trust anyone other than themselves when transacting with the cryptocurrency. In addition, the protocol is designed to be resistant to hacking and attacks that can reduce the transaction’s integrity.
However, while the benefits of ethereum are too numerous to discuss, some users are concerned that the move to make the cryptography behind the system more open may have a negative effect on the value of ether itself. Since the lack of strictures regarding the emission of ether means that there are no significant limitations on the supply of the scarce currency, investors may find the move to be detrimental to their portfolio. However, Vitalik Buterin, the founder of the Ethereum project, states that he hopes that the lack of regulations for ether will spur growth in the marketplace. To be clear, Buterin continues, “If there are no regulations, there can never be a regulation.” Even if the lack of regulations causes fluctuations in the price of ether, the protocol will still remain intact due to its ability to implement smart contracts.