6 ways Ethereum can boost your company’s performance
Worldwide, companies have been taken aback by the slow but steady demand for cryptocurrencies and blockchain-based applications. As regular users started to invest in Bitcoin and more digital currencies were released on the market, businesses had to adapt and collaborate with crypto organizations. Besides investing, crypto enthusiasts also use digital tools to create decentralized apps. Most of the time, the Ethereum blockchain is used as an ecosystem for developers since it has all the tools necessary and a helpful community.
But for applications to leverage benefits for individuals, cryptocurrencies must be invested. So, for example, checking the Ethereum price on Binance to see how many governance tokens are needed for an in-game transaction is necessary for any user.
However, these crypto-based companies must make considerable efforts to withstand the competition while ensuring business goes well. Enterprises that only introduce cryptocurrencies as a payment alternative or use blockchain solutions must have a proper approach to succeed.
Ethereum is among the best cryptocurrencies and blockchains for any business to include, which is why we’ll discuss some of the ways it can benefit a company.
What to choose between the public and private Ethereum enterprise
Ethereum has deployed solutions for businesses to choose what suits them best—for example, the public Ethereum Mainnet, where applications can easily connect to each other. But enterprises also developed Ethereum-based private blockchains for specific technologies requiring more input.
Private blockchains might be less performant or safe, and many reasons exist. First, these private ecosystems have fewer nodes to secure them, making them more susceptible to fraud. The costs are also more prominent compared to the public Mainnet. The only benefit of private blockchains regards security since unauthorized nodes cannot access the system.
The Ethereum Mainnet has numerous resources that support companies on their path to success. Organizations like the Enterprise Ethereum Alliance (EEA) leverage business opportunities and allow parties to collaborate. At the same time, many products, libraries and scalability solutions (Layer 2) are available for everyone.
Considering the current framework, here’s how Ethereum boosts companies’ productivity.
Ethereum enhances data coordination
Ethereum is based on decentralization, so no central entity would need to contribute to managing transactions. This ensures that data coordination runs smoothly and customers can receive and send money rapidly without going through a complex and long authorization process.
Ethereum also enhances coordination through database sharding, which helps break up massive amounts of data to reduce computational power efforts and gas fees. This process is basically conducting a subdivision of nodes and transactions to allow customers to receive fast solutions.
Ethereum provides scalability
Ethereum and scalability concerns rose at some point when the network got so congested that users were starting to worry about the sustainability of this blockchain. But due to current updates, such as the Merge and Shapella, Ethereum increased its scalability capabilities, leading to decreasing transaction fees.
Ethereum has many other scalability applications, such as Layer 2 and rollups. They help reduce congestion, improve user experience and protect decentralization and security. The blockchain has specific solutions for EVM-compatible organizations, like sidechains and state channels.
Ethereum paves the way towards tokenization
Current market demands push corporations to adopt tokenization and NFT technology to appeal to a target audience. Companies like Nike or even Chanel introduced the possibility of acquiring fashion-related tokens. At the same time, they transformed their products to be easily tokenized by whoever wants to after acquisition.
Any business can tokenize assets on the Ethereum blockchain, as it only requires to be transformed into a digital format. A less-known benefit of tokenization includes unlocking new incentivization models, such as crowdsourced data management.
Ethereum leverages the rapid deployment of applications
Ethereum revolutionized the market by introducing smart contracts. Developers use these programs to set certain conditions that trigger a specific action when met by the user. Smart contracts have the capability to maintain safety and security between two parties regarding transactions but are not limited when it comes to usage options.
Smart contracts on Ethereum can ensure rapid deployment of most applications, considering that the dApp and DeFi sectors are developing and decentralized apps are evolving to become a better alternative to traditional ones.
Ethereum is open to Web3 possibilities
Web3 is one of the most awaited and developing technologies. The concept of Web3 is about immersion in digital experiences and companies competing to offer various services in entertainment, health and finances. What’s interesting about Web3 is that it operates on DeFi models and cryptocurrencies, meaning that blockchain paves the way towards digitalization.
Ethereum can introduce your business to Web3 since it’s decentralized, permissionless and trustless. Web3 is an important step towards innovation because it provides ownership, censorship resistance and gives access to DAOs. Any enterprise approaching Web3, as it’s still developing, can contribute to faster adoption of the new era of technology.
Ethereum ensures the best development standards
Ethereum’s community devised a set of standards to maintain smart contracts and dApps at their peak. Besides the regular standards, such as the Standard Track, many token standards are behind NFTs optimization and network decentralization interfaces.
If your company deals with complex computational services and handles multiple transactions and processes, leveraging Ethereum’s development standards can raise the bar and allow your company to enter and rule the market competition.
Besides the already set standards, Ethereum frequently undergoes updates that help the blockchain make every transaction and action more efficient and faster. While the Merge shifted from PoW to PoS and reduced energy costs, upgrades like the Surge plan improved scalability.
The roadmap of Ethereum is filled with preparations for the Verge, planning to allow more accessible block verifying, and the Purge, which is about to reduce computational costs for nodes. Therefore, Ethereum will continue making the network more efficient and stable for anyone using it.
Final considerations
Ethereum blockchain is one of the most innovative solutions for companies, and it sets the tone for digitalization. With the help of smart contracts and scalability operations, any business can benefit from the blockchain’s solutions and simply increase productivity rates.
