Enterprise Ethereum: More Than Distributed Ledger Technology?


You might have come across the concept of enterprise blockchain projects as it is now gaining more popularity each day. Numerous companies are collaborating with these business networks for streamlining shared business processes such as tracing real-world goods, managing data, and tracking transactions.

In this article, we will understand what enterprise Ethereum means and the features that elevate it to being more than a distributed ledger technology. Before delving deeper into these, let us first understand why we can’t just use a shared database instead of an enterprise blockchain.

Need For an Enterprise Blockchain

The main reason for not using being able to use a shared database is the issue of network governance. We all know that a distributed database is one that is shared across multiple organizations. Speaking to governance, it boils down to four questions which are:

  • Who is the owner of the data?
  • Who makes sure that the data is not tampered with?
  • Who is vested with the authority to modify or delete the data in the business network?
  • Who takes care of the setting up and functioning of the network layer, which allows all the participants to validate the latest transactions.

Using blockchain technology solves the ‘who’ problem through the establishment of a shared network where all participants agree on ownership and involvement. The members of a blockchain network host it in a decentralized manner. This is why an enterprise blockchain would be more useful than a shared database as the aspects mentioned above are taken care of automatically.

Understanding Enterprise Ethereum

Ethereum, as most of us would already know, is a public blockchain that allows us to write codes to control money and build applications that are accessible from anywhere in the world. It is a public blockchain which allows application developers to pay using Ether (Ethereum’s cryptocurrency) for services availed on the Ethereum blockchain.

An enterprise Ethereum is one where the Ethereum codebase is used by enterprises across the world to form business blockchain networks. While there is no single product called “Enterprise Ethereum,” the term refers holistically to blockchains that are developed using modified Ethereum clients like Quorum and Pantheon. These address the specific needs of the enterprise, such as increased performance, scalability, and privacy, along with permissions and governance controls.

Another significant fact to note here is that enterprise Ethereum networks will not face the same privacy or scaling constraints as the public Ethereum. As the network size of enterprise Ethereum networks is smaller and the block sizes and the gas limits can be adjusted, it is possible to scale more transactions per second like other distributed ledger technologies (DLT).

Reasons for Ethereum Being More Than a DLT

R3’s Corda and Hyperledger Fabric are the other enterprise solutions that have gained popularity. Let us now understand the various features that make enterprise Ethereum the most powerful and versatile blockchain for business.

1. Enterprise Ethereum Can Access the Public Ethereum, the Most Developed and Secure Blockchain Platform in the World

Enterprise Ethereum is faster due to increased participation. This is not the case with distributed ledger solutions. Right from 2015, many people have purchased millions of dollars of Ether on the public Ethereum. Many developers have built more than 2,000 decentralized applications on Ethereum. This is what makes Ethreum’s public network the most advanced and tested blockchain platform in the world.

So, how does enterprise Ethereum benefit by developing on the public mainnet? Building on Ethereum will help enterprise solutions quickly adopt updates to Ethereum and benefit from the innovation of the ecosystem. It offers them an active and vast high-value public blockchain and all the elements of its ecosystem.

2. Enterprise Ethereum Can Be Rapidly Deployed and has the Lowest Cost Business Model

The open-source and flexible codebase of Ethereum helps enterprise Ethereum have a low-cost business model as it eradicates dependence on a single large solutions provider whose business model focuses on upselling and feeding on deep dependencies cloud and consulting services. Private, permission Ethereum networks can be set up within weeks when compared to other solutions that are difficult to maintain. New business solutions are constantly launching like Kaleido’s blockchain business cloud, which is an example of a SaaS platform to build and run enterprise blockchain solutions.

3. It Offers the Largest Enterprise Ecosystem

Ethereum is the most active technical blockchain community across the globe, with more than 2,000 decentralized applications and more than 300K infrastructure experts and developers. The enterprise and consumer arenas of Ethereum are developing standards to guide regulation and promote interoperability for the future success of the blockchain.

4. Enterprise Ethereum Helps Future-Proof Companies

Future-proofing is the concept of protecting companies against obsolescence. For enterprise Ethereum solutions, future-proofing can be applied to three things, namely your company’s data, your company, and Ethereum itself. Future-proofing can also mean the actual functioning of a blockchain. A blockchain helps keep data safe, immutable, and future-proofed. Decision-makers may even define future-proofing as mitigating risk to ensure prolonged success for their businesses.


I hope you have now understood the aspects in which an Enterprise Ethereum can be considered to be more than a distributed ledger technology. To become an Ethereum expert and get instant updates about blockchain certifications, check out Blockchain Council.

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