Why Ethereum Development is in Demand Among Modern Organizations

Blockchain adoption among enterprises is showing no signs of slowing down. Indeed, Blockchain technology stimulated a wave of innovations in different sectors after its inception in the digital space. Sectors like financial institutions, government bodies, and non-profit organizations have largely benefitted from developing, testing, and deploying decentralized Blockchain solutions.

As per a recent survey, around 44% of fortune 500 companies stated that they preferred public Blockchains than private platforms for developing high-performing decentralized applications. Even though public Blockchains promote transparency, the data recorded within the network remains immutable. Therefore, enterprises can build secured Blockchain solutions that protect participants’ information or transactions against hacking attempts, data breaches, and other cyber security issues. One of the highly tested and implemented public Blockchain platforms among enterprises is Ethereum.

Understanding Ethereum Blockchain

Ethereum is an open-source decentralized software platform driven by Blockchain technology. Due to its open nature, developers or entrepreneurs can use this platform to build decentralized applications. Ether (ETH) is the native cryptocurrency supported by the Ethereum platform. Network participants can perform their transactions or requested operations inside the Ethereum applications via Ether.

Developers from the right Ethereum development company make it easier for organizations to create applications that enable participants to perform transactions and store information securely. With Ethereum development, enterprises can facilitate network users to perform cross-border exchanges without relying on third-party intermediaries and financial systems. In addition, Ethereum natively supports Smart Contracts, a key mechanism that allows network users to transact with each other devoid of a centralized authority.

Use Cases of Ethereum Blockchain Development

• Payment Gateways - One of the popular use cases is payment gateways. Enterprises can leverage convenient APIs and crypto plugins that are available within the Ethereum ecosystem and build Ethereum-powered payment gateways. These gateways allow companies to accept ETH payments and users to store their money in an account that changes the tokens into fiat currencies like (dollars and euros) for the transaction.
• NFT Marketplace - Ethereum is one of the ideal platforms for developing NFT marketplace solutions. With Ethereum-based NFT development, token metadata are publicly exposed to app users. This makes it easy for users to see the ownership and transaction history of all the entities available in the marketplace. Once a transaction is made through the Ethereum-NFT marketplace app, it is practically hard to interpret ownership by mishandling the data.
• ICO Platforms - Ethereum Blockchain platform is preferred by enterprises to build ICO (Initial Coin Offering) platforms. Ethereum supports Smart Contracts, the essential mechanism for automating token creation and distribution. Smart Contracts ensure that investors obtain unique “tokens” in exchange for their investment in the ICO platform.
• Digital Identity Management - Implementing Ethereum-integrated identity management solutions can be beneficial for enterprises and overcome challenges related to workplace isolation and data insecurity. By developing a decentralized identity management system with the help of an Ethereum Blockchain development company, organizations can securely store the details of their employees, vendors, products, etc.

Comparison of Ethereum With Other Public Blockchain Platforms

Though all the public Blockchain platforms follow similar architecture, each platform’s approaches to attaining objectives differ substantially. Organizations have other public Blockchain alternatives like Stellar, Binance, and Ripple available for developing enterprise-grade Blockchain solutions. However, Ethereum remains as the enterprises’ Blockchain platform of choice. To understand, why Ethereum is the prominent public Blockchain platform, let’s look at the following comparisons:

Ethereum vs. Stellar

Even though both Ethereum and Stellar are open-source in nature, Ethereum offers better flexibility for programmers to write code for smart contracts as per their requirements. Thus, for organizations that are looking to develop more scalable applications (which need Turing complete smart contracts with greater computational abilities), then Ethereum is a viable platform.

On the other end, the smart contracts functionality provided by the Stellar ecosystem is non-Turing complete. Meaning that, they only offer less scope for programming and customization. To build and deploy basic applications with simple contract execution at a reasonable speed, then Stellar platform is best suitable.

Ethereum vs. Binance

One of the prominent reasons why Ethereum became a preferred choice for ICO platform development is due to its consensus mechanism. Ethereum embraces a consensus mechanism called PoW (Proof-of-Work). Transactions can be done within Ethereum-built ICO platforms when all the nodes within a network meet the necessary conditions. Therefore, Ethereum’s PoW is an incredible consensus mechanism and ensures better security for IPO platform users.

Whereas, Binance follows a consensus mechanism known as Proof-of-Authority (PoA). Compared to PoW consensus, a PoA consensus doesn’t require all the nodes to fulfill conditions for performing transactions. This opens room for malevolent validators to represent illegal assets for other network users. On the whole, the acceptance of malicious and compromised nodes in the Binance network is higher than in the Ethereum platform. Therefore, the Binance platform is not suitable for representing real-world assets and developing ICO platforms.

Ethereum vs. Ripple

When it comes to the transaction speed, the Ripple Blockchain takes around 4 seconds to verify and complete a transaction. And a transaction in the Ethereum platform takes around 16 seconds. But, efficiency is not just about the speed of transactions, it’s about affordability too! It is important to consider the cryptocurrency fees charged by a network before the development of applications.

In that case, Ethereum charges fewer crypto fees than the Ripple network. It’s because Ether’s value is kept as close to fiat currency’s value as possible. Hence, the value of Ether remains stable. The more stable the value, the lower the fees. When the value is stable, fees become affordable for network participants. On the other hand, Ripple’s fee often spikes due to its native currency’s (XRP) volatility. The high gas fees have been one of the major issues in the Ripple ecosystem.

Summing Up

As said before, the functionality of each public Blockchain platform differs. Enterprises should consider multiple parameters like scalability, performance, and efficiency before choosing a Blockchain platform. Ethereum is one such platform that excels at all these parameters. By leveraging the Ethereum platform, companies can build decentralized solutions that boost organization productivity, data transparency, and security.