Microsoft, Intel, JPMorgan Chase, Fubon Financial, and nearly 30 other financial and tech giants announced the formation of the Enterprise Ethereum Alliance (EEA) on February 28, aiming to bring Ethereum blockchain technology into mainstream commercial applications.
Ethereum Offers Superior Scalability, Cost Efficiency, and Speed Compared to Bitcoin
Ethereum is a blockchain platform with smart contract capabilities, featuring decentralized, transparent, and immutable transaction records. Developers can build diverse applications on this platform. Created in 2013 by then-19-year-old developer Vitalik Buterin, Ethereum officially launched in 2015.
While Bitcoin remains the most widely recognized blockchain application, its limitations—such as low transaction throughput, slow confirmation times, and restricted scalability—hinder complex services like smart contracts. Ethereum addresses these issues with enhanced scalability, lower costs, and faster processing speeds.
Unlike Ethereum's original open-source model, where all blockchain activities were publicly visible, the EEA aims to improve privacy, security, and scalability by developing a private version of Ethereum. Currently, EEA technology is exclusive to certified members, allowing customization to meet industry-specific regulatory requirements (e.g., banking or logistics). The alliance ultimately seeks to establish unified standards for Ethereum technology.
According to The New York Times, Ethereum’s developer community has surpassed Bitcoin’s, attracting significant corporate investment. EEA members include Credit Suisse, UBS Group, BNY Mellon, Thomson Reuters, and blockchain startups like ConsenSys and BlockApps.
Ethereum was also the first blockchain technology supported by Microsoft’s Azure cloud services. In 2015, Microsoft introduced Blockchain-as-a-Service (BaaS), simplifying enterprise adoption of blockchain benefits. Joining the EEA aligns with Microsoft’s goal to expand its blockchain offerings.
Blockchain Technology Could Save Banks 30% in Operational Costs
A January report by Accenture estimates that blockchain could save the world’s top 10 banks $8–12 billion** (approximately NT$2.5–3.1 trillion), or 30% of current data center operational costs**. This potential has driven major financial institutions to develop proprietary blockchain platforms.
Examples include:
- JPMorgan Chase’s Ethereum-based "Quorum" for cross-border corporate payments.
- R3, a blockchain consortium with over 70 members (including Goldman Sachs and Morgan Stanley), developed "Corda."
- IBM’s Hyperledger Project, an open-source initiative under the Linux Foundation, used by Walmart for supply chain management.
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FAQs
What is the Enterprise Ethereum Alliance (EEA)?
The EEA is a collaboration of 30+ major corporations to advance Ethereum blockchain technology for business applications, focusing on privacy, security, and scalability.
How does Ethereum differ from Bitcoin?
Ethereum supports smart contracts and offers higher scalability, lower costs, and faster speeds than Bitcoin, making it suitable for complex commercial uses.
Why are banks investing in blockchain?
Blockchain can reduce operational costs by 30% through streamlined data transmission and infrastructure efficiencies.