{"id":491280,"date":"2022-09-08T17:30:00","date_gmt":"2022-09-08T14:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/eth-merge-will-change-the-way-enterprises-view-ethereum-for-business\/"},"modified":"2022-09-08T17:30:00","modified_gmt":"2022-09-08T14:30:00","slug":"eth-merge-will-change-the-way-enterprises-view-ethereum-for-business","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/eth-merge-will-change-the-way-enterprises-view-ethereum-for-business\/","title":{"rendered":"# ETH Merge will change the way enterprises view Ethereum for business"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d82266e313\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d82266e313\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/eth-merge-will-change-the-way-enterprises-view-ethereum-for-business\/#%E2%80%9D_ETH_Merge_will_change_the_way_enterprises_view_Ethereum_for_business_%E2%80%9C\" >&#8221; ETH Merge will change the way enterprises view Ethereum for business &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/eth-merge-will-change-the-way-enterprises-view-ethereum-for-business\/#The_Merge_will_change_how_enterprises_view_Ethereum\" >The Merge will change how enterprises view Ethereum<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/eth-merge-will-change-the-way-enterprises-view-ethereum-for-business\/#Benefits_not_immediate\" >Benefits not immediate\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_ETH_Merge_will_change_the_way_enterprises_view_Ethereum_for_business_%E2%80%9C\"><\/span>&#8221; ETH Merge will change the way enterprises view Ethereum for business &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvZGI0YTJiZTItMDgxYi00MDllLWI4N2YtMDM0NTNjNDljMTgzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-71846793>A recent report from the Ethereum Enterprise Alliance (EEA) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/entethalliance.org\/wp-content\/uploads\/2022\/06\/EEA_Ethereum_Business_Readiness_Report_2022_v1.1_June_29_2022.pdf\">highlights<\/a> how the Ethereum ecosystem has matured to a point where the network can be used by businesses to solve real-world problems. From supply chain management use cases to payment solutions utilized by companies like Visa and PayPal, the report demonstrates how the Ethereum network has grown to become one of the most valued public blockchains.\u00a0<\/p>\n<p>Although notable, the EEA report also points out that the rapid growth of the Ethereum ecosystem has created a number of challenges for companies, specifically regarding energy consumption, scalability and privacy. For example, the document states that \u201csustainability was cited as one of the main concerns, along with transaction fees, in relation to using the Ethereum Mainnet.\u201d The report further explains that the transparency associated with a public blockchain like Ethereum has been a hurdle for enterprises seeking data security and trust. <\/p>\n<p>As such, upgrades such as sharding and layer-2 (L2) scalability solutions remain critical for businesses using the Ethereum network. Yet, the complex nature behind such implementations continues to be difficult for companies to navigate. For instance, the EEA report states that \u201cMany layer 2 solutions and sidechains are relatively new projects, with relatively new <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. They do not necessarily have the track record or proven security and stability of the Mainnet.\u201d <\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Merge_will_change_how_enterprises_view_Ethereum\"><\/span>The Merge will change how enterprises view Ethereum<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>However, industry experts predict that the Ethereum Merge, which is scheduled to take place on Sept. 14, will likely improve enterprise adoption. Paul Brody, global blockchain leader at EY, told Cointelegraph that while the Merge will not affect most enterprise use cases that are presently in use, it will change how businesses perceive Ethereum. He said:\u00a0<\/p>\n<blockquote><p>\u201cFor years, competing layer-1 networks have talked about how Ethereum can\u2019t get the Merge done. The incredible organizational maturity of Ethereum has been working nicely in the background to do it in a careful and professional manner. As an enterprise, that\u2019s the kind of institutional maturity I want to see.\u201d<\/p><\/blockquote>\n<p>Although the Merge has been in development for several years, Brody explained that upgrades on mission-critical infrastructure should never be rushed. As such, he believes that this will remain a key point for businesses using the Ethereum network. \u201cI think future efforts to dismiss Ethereum won\u2019t get much airtime in the post-Merge era,\u201d he said.\u00a0<\/p>\n<p>While it\u2019s too early to detect how enterprises will react to the Merge, Robert Crozier, chief architect and head of global blockchain at Allianz Technology, told Cointelegraph that his firm will monitor the progress of the Ethereum Merge to see how it stabilizes certain use cases. <\/p>\n<p><strong><em>Recent:\u00a0How high transaction fees are being tackled in the blockchain ecosystem<\/em><\/strong><\/p>\n<p>This is noteworthy, as Crozier shared that Allianz has only considered Ether (ETH) and Ethereum-based use cases for experimentation purposes on a small scale. The insurance giant currently uses Hyperledger Fabric and the decentralized ledger platform Corda to streamline cross-border auto insurance claims throughout Europe. Crozier added:<\/p>\n<blockquote><p>\u201cAt Allianz, our International Motor Claims Settlement product utilizes Hyperledger Fabric at its core. We would need to understand and be confident that other protocols like Ethereum would deliver the similar benefits in terms of ease of use, scalability and finality.\u201d<\/p><\/blockquote>\n<p>With benefits in mind, Brody explained that the Merge will eventually result in better scalability and privacy for enterprises. \u201cI think we\u2019re heading into a new era of enterprise <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications. With both scalability and privacy maturing, it will be possible to address enterprise process needs quite comprehensively in the future,\u201d he said.\u00a0<\/p>\n<p>Shedding light on this, Ivan Brakrac, senior decentralized finance market strategist at ConsenSys, told Cointelegraph that although the Merge does not directly increase scalability, a number of planned upgrades to Ethereum will address scalability over the next few years. <\/p>\n<p>For example, Brakrac explained that transitioning the Ethereum network from proof-of-work (PoW) to proof-of-stake (PoS) was the first step to enable \u201cshard chains.\u201d As Cointelegraph previously reported, sharding is the act of dividing up a database, or in this case, the blockchain, into various smaller chains known as shards. <\/p>\n<p>\u201cThis will reduce network congestion and increase transaction throughput,\u201d Brakrac remarked. This is key for adoption, as Brody shared that EY\u2019s enterprise clients looking at supply chain applications are going to need support for 2\u201320 million transactions per day. \u201cPre-Merge Ethereum could not have accommodated this,\u201d he said. <\/p>\n<p>Regarding privacy, a report <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/pages.consensys.net\/impact-of-the-merge-on-institutions-insight-report-sept-2022\">entitled<\/a> \u201cThe Merge for institutions,\u201d published by ConsenSys on Sept. 5 mentions that L2 solutions also address privacy concerns for enterprises. An increase in L2s will unlock greater privacy mechanisms for business use cases.\u00a0<\/p>\n<p>For example, Brody explained that EY developed a zero-knowledge proof L2 scaling solution known as Nightfall to handle Ethereum gas constraints and keep fees low. According to Brody, multiple powerful L2 networks will enable different options for enterprises that may require more gas and bigger transactions. He elaborated: <\/p>\n<blockquote><p>\u201cPrivacy starts to unlock a much bigger set of use cases for enterprise users. For example, instead of minting one token that represents a batch of product and gives origin information, I can mint one token for each piece of inventory, and then I can manage specific supply chain inventory levels across a multi-company network on Ethereum.\u201d\u00a0<\/p><\/blockquote>\n<p>In addition to scalability and privacy, sustainability concerns will be addressed once the Merge is implemented. According to Brakrac, Ethereum currently uses an inordinate amount of electricity, noting that the Merge will reduce energy usage by 99%. \u201cThis will make Ethereum very sustainable in the long run. By design, this further secures the network and resolves an environmental concern which is net positive from the institutional adoption standpoint,\u201d he said.\u00a0<\/p>\n<p>Indeed, industry experts believe that sustainability efforts addressed by the Merge will be critical for enterprise adoption. Dan Burnett, executive director of the EEA, told Cointelegraph that while L2s and sidechains have served as bandages on sustainability concerns, large organizations with environmental, <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> and governance goals tended to shy away from building solutions on Ethereum because of its reputation for being environmentally unsustainable. Yet, he noted that with these concerns being addressed, the Merge may enable the Ethereum business ecosystem to leap ahead.<\/p>\n<p>Yorke Rhodes III, co-founder of blockchain at Microsoft and board member and treasurer of the EEA, further told Cointelegraph that the Merge will put to rest one of the main concerns for enterprises that have a big focus on environmental impact, such as Microsoft. <\/p>\n<p>\u201cThis removes one of the key arguments enterprises raise when evaluating whether to build solutions on Ethereum mainnet,\u201d he said. To Rhodes\u2019 point, Crozier mentioned that moving to a more environmentally friendly proof-of-stake mechanism will mean that some enterprises, like Allianz, will take a second look at Ethereum. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_not_immediate\"><\/span>Benefits not immediate\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>All things considered, the Merge will likely increase enterprise interest in Ethereum due to the advancement of the network. Moreover, Rhodes believes that removing the key critique of sustainability will encourage additional movement to the Ethereum Mainnet, even if this is just as a base layer for security. \u201cAs a key step in realizing the vision of Ethereum, the ETH merge sets things up for a closer enterprise review sooner rather than later,\u201d he said.<\/p>\n<p><strong><em>Recent:\u00a0Mt. Gox creditors fail to set repayment date, but markets to remain unaffected<\/em><\/strong><\/p>\n<p>However, it\u2019s important to point out that the benefits promised by the Merge won\u2019t be seen immediately. According to Brody, it will take at least 12\u201324 months until privacy-enabled use cases are established following the Merge. He said:<\/p>\n<blockquote><p>\u201cI hope to see pilots by the end of this year, but feedback loops and infrastructure maturity takes time. Unlike consumer applications, there\u2019s little patience among enterprise buyers for products that don\u2019t work on the first go-round and little willingness to experiment. Enterprise buyers are <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly quite conservative, and so the cycle will take longer than consumer users.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/eth-merge-will-change-the-way-enterprises-view-ethereum-for-business\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; ETH Merge will change the way enterprises view Ethereum for business &#8220; A recent report from the Ethereum Enterprise Alliance (EEA) highlights how the Ethereum ecosystem has matured to a point where the network can be used by businesses to solve real-world problems. From supply chain management use cases to payment solutions utilized by&#8230;<\/p>\n","protected":false},"author":1,"featured_media":491281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDkvZGI0YTJiZTItMDgxYi00MDllLWI4N2YtMDM0NTNjNDljMTgzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[133045,74894,76402,75554,75885,78820,74891,89666,75568,74880,74355,117,70286,68637,4965],"class_list":["post-491280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-allianz","tag-blockchain","tag-consensys","tag-dlt","tag-enterprise","tag-ernst-young","tag-ethereum","tag-hyperledger","tag-supply-chain","tag-transactions","tag-adoption","tag-business","tag-microsoft","tag-predictions","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/491280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=491280"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/491280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/491281"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=491280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=491280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=491280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}