DEFINITION of 'Ethereum Enterprise Alliance '

Ethereum Enterprise Alliance (or EEA), launched in February 2017, brings together start-ups, Fortune 500 companies, technology vendors, academicians, and Ethereum subject matter experts to work on Ethereum as an enterprise-grade technology.

The alliance aims to build, promote and support Ethereum blockchain technology best practices, standards and a reference architecture that is capable of handling its real-world applications and usage. 

BREAKING DOWN 'Ethereum Enterprise Alliance '

Although many technology giants and businesses had been supporting Ethereum via Cloud services and working towards its adoption, most efforts towards its scalability, privacy and interoperability remained scattered until the Ethereum Enterprise Alliance came into being.

Launched in 2015, Ethereum is a blockchain-based, decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built and run without any downtime, fraud, control or interference from a third party.

Ethereum is not just a platform but also a programming language (Turing complete) running on a blockchain, helping developers to build and publish distributed applications. (See also: Bitcoin Vs Ethereum: Driven by Different Purposes.)

The potential applications of Ethereum are wide-ranging, and this has attracted a number of enterprises to explore the technology. Ether, the cryptographic token used on the Ethereum platform is the second most popular cryptocurrency in terms of market capitalization. (See also: What Is Ether? Is It the Same as Ethereum?)

In recent times, multiple pilot projects have been initiated and worked on by member companies (and others) covering areas such as supply chain provenance tracking, inter-bank payments, reference data, securities settlement, and many others. However, the real-world enterprise use calls for collaborated efforts to build architectures that allow both permissioned and public Ethereum networks, and the formation is EEA is an important step in this direction. 

The founding members of the Enterprise Ethereum Alliance rotating board include Accenture, Banco Santander, BlockApps, BNY Mellon, CME Group, ConsenSys, IC3, Intel, J.P. Morgan, Microsoft, and Nuco.

During Consensus 2017, Ethereum Enterprise Alliance added another 86 members, taking the total count to 116. EEA now represents well-known names from across different regions and industries, such as Mitsubishi UFJ, DTCC, Deloitte, Samsung SDS, Infosys, Toyota Research Institute, National Bank of Canada and Merck KGaA, among others.

The members of EEA represent varied businesses from every region of the world, including technology, banking, government, healthcare, energy, pharmaceuticals, marketing, and insurance, with the total count of members now touching 300 (as of February 2018).

EEA has been setting up working groups with the task of “creating and delivering specific advancements to the development and use of Ethereum-based technologies." The total count of such industry-led working groups and committees by EEA is 17 (as of February 2018).

With a focus towards solving real-world challenges of deploying Ethereum at enterprise-scale, the Enterprise Ethereum Alliance is an important initiative in the adoption of blockchain and decentralization.

RELATED TERMS
  1. Ether (Cryptocurrency)

    Ether, often perceived as the native currency of Ethereum, actually ...
  2. Metamask (Cryptocurrency)

    Metamask is a web browser add-in that allows Ethereum transactions ...
  3. European Economic Area (EEA) Agreement

    The European Economic Area (EEA) Agreement is an agreement made ...
  4. Raiden Network

    Raiden Network will speed up the transfer processing on the Ethereum ...
  5. Founder's Reward

    Founder's Reward is the reward offered to early team members ...
  6. Gas Price (Ethereum)

    Gas price is a distinct unit of charging for transactions processing ...
Related Articles
  1. Investing

    Why Ethereum Prices Reached Record Highs

    The virtual currency network reached a record high rate of $30/ea. What could be driving the jump?
  2. Tech

    Understanding the Reasons Behind Ethereum's Price Rise

    The price of Ethereum has surged by 2400% year-to-date, from approximately $8 in the beginning of the year to beyond $200, pushing its market capitalization to around $18.5 billion.
  3. Tech

    Bitcoin Vs Ethereum: Driven by Different Purposes

    The popularity and rising market capitalization of Ether brings it in competition with all cryptocurrencies, especially from the trading perspective.
  4. Tech

    4 Blockchain Contenders in Competition with Ethereum

    Ethereum remains the gold standard for smart contracts and blockchain-based apps, but new challengers are springing up.
  5. Tech

    Ethereum Price Surges, Following Bitcoin Gains

    Bitcoin posted gains over the weekend, thanks in large part to developments with the ongoing scaling debate, and Ethereum followed throughout the week.
  6. Tech

    Why are There Now Two Ethereums?

    Damage control over a huge Ethereum theft led to a radical solution: Split Ethereum into two.
  7. Tech

    What's Putting Pressure on Ethereum's Price?

    Ether, one of the most sought after cryptocurrencies, has been under pressure lately.
  8. Tech

    Ether Sets a New Daily Transactions Record

    There are ten times more ETH transactions taking place per day now than at the start of the year.
  9. Tech

    Top Brown Bros. Harriman Exec Supports Ethereum, Not Bitcoin

    As more banking leaders are weighing in on cryptocurrencies, many are taking sides. Mike McGovern is backing Ethereum over Bitcoin.
  10. Tech

    Ethereum Continues to Pressure Bitcoin Out of Top Crypto Spot

    Ethereum has made substantial gains when it comes to share of the cryptocurrency market, and it is now challenging Bitcoin for predominance.
RELATED FAQS
  1. What is the difference between enterprise value and equity value?

    Valuating a business accurately depends heavily on the purpose of the valuation. Learn how enterprise value and equity value ... Read Answer >>
  2. What Does the Bitcoin Blockchain Record?

    Read about the bitcoin blockchain, a public ledger shared among all bitcoin users that records the information of every single ... Read Answer >>
  3. What can working capital be used for?

    Find out what working capital is used for, including how to calculate this financial metric by subtracting current liabilities ... Read Answer >>
  4. What does high working capital say about a company's financial prospects?

    Learn about net working capital and what a high figure indicates about a company's financial prospects, including the importance ... Read Answer >>
  5. How can I calculate funds from operation in Excel?

    Understand how the terms ''work in progress'' and ''work in process'' are used interchangeably to refer to items in the middle ... Read Answer >>
Hot Definitions
  1. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  2. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
  3. Enterprise Value (EV)

    Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market ...
  4. Relative Strength Index - RSI

    Relative Strength Indicator (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent ...
  5. Dividend

    A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.
  6. Inventory Turnover

    Inventory turnover is a ratio showing how many times a company has sold and replaces inventory over a period.
Trading Center