Ethereum Blockchain Application: Are Enterprises Moving from Private Networks to Public Networks?

The Ethereum blockchain is being accepted by some of the largest industry participants in the world. This world's most popular smart contract platform not only occupies a dominant position in the field of decentralized applications (Dapp), but also plays an important role in the field of decentralized finance (DeFi).

Ethereum blockchain application

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Enterprise Ethereum essentially refers to a blockchain built using a modified Ethereum client (such as Hyperledger Besu and PegaSys Plus), which can address issues such as increased privacy, performance and scalability, and permissions for enterprises And governance needs.

Although Ethereum supports public and private networks, businesses tend to use private networks. At the ETHLondonUK conference, Joseph Lubin, founder of ConsenSys and co-founder of Ethereum, talked about the development of private, licensed networks promoted by Ethereum:

"We will see that this technology will soon become mainstream, and we will also see the private licensing network continue to develop. I like the" use case decentralization "concept, which is completely achievable, and I look forward to a large number of licenses The emergence of systems. Now that there are license-free systems, they are likely to launch the mainnet or develop Layer 2 connected to the mainnet. "

Lubin went on to add:

"If you build a logical structure for your system, the structure can be based on a disconnected private licensed version of Ethereum technology; or if privacy, privacy, scalability, and availability are all well addressed, it also It can be upgraded to a different version. We expect that many private networks will be interconnected horizontally. "

Developed by JP Morgan, Quorum is one of the most compelling enterprise-level licensing blockchain infrastructures, designed specifically for financial use cases.

In addition, global tax and affairs consulting company Ernst & Young (EY) launched the initial prototype of its enterprise blockchain EY Ops Chain in 2019, which is a flagship Ethereum-based blockchain business application platform developed by Ernst & Young. Its goal is to provide businesses and investors with a secure and scalable public blockchain through which users can conduct secure private transactions.

Businesses turn to public networks?

Why do companies love private networks rather than public networks? There are many reasons. Among other things, this avoids potential challenges posed by various compliance regulations and regulatory restrictions, and without the fear of leaking confidential data to competitors.

However, this trend has changed. Recently, many companies have begun to focus on public blockchain networks.

Recently, EY announced that it will cooperate with Microsoft to launch an open source project called "Baseline protocol" on the public Ethereum blockchain.

To some extent, this open source project funded by the Ethereum Foundation and the Enterprise Ethereum Alliance is of great strategic importance, because it does not include anything like zero-proof of knowledge (zero- knowledge proofs), which means that companies are now exploring a different path.