Credit Suisse, UBS in a Big Alliance to develope blockchain

7 years ago - Published in Finance, Fintech Land, Technical Analysis

JPMorgan, Microsoft, Intel, Accenture PLC and a large consortium of major players in tech and banking, including Credit Suisse, UBS, Bank of New York Mellon and Thomson Reuters, have joined hands to establish the Enterprise Ethereum Alliance (EEA), a new group  dedicated to developing Ethereum into an enterprise-grade Blockchain platform.

The alliance connects Fortune 500 enterprises, startups, academics and technology suppliers with Ethereum subject matter experts to learn from and build upon Ethereum and to define standards for enterprise-grade implementations.

Ethereum, a type of blockchain that can be used to develop decentralized applications, was invented by 23-year-old programer Vitalik Buterin. Several banks have already adapted Ethereum to develop and test blockchain trading applications.

The EEA joins a growing list of joint initiatives by large companies aiming to take advantage of blockchain, a shared digital record of transactions that is maintained by a network of computers rather than a centralized authority.

“Ethereum is already one of, if not the, most widely used technologies for developing and deploying enterprise blockchains,”said Jeremy Millar, founding board member of EEA, Finance Magnates reported.

“Enterprises love the availability of open-source implementations, a single standard, the rapidly growing developer ecosystem, and availability of talent. But enterprises expect resilient secure systems and a robust controls environment. EEA aims to bring these together, both to provide enterprises the forum they need and also to advance Ethereum generally.”

Some members of the alliance have already used the technology to develop blockchain-based applications. A few months ago, JP Morgan created a system for confidential transactions called Quorum.

Ethereum uses blockchain to record and verify transactions without the participation of third parties. The technology enables the automation of different type of things, including financial contracts and identity management. If compared to bitcoin, Ethereum is more flexible due to its capacity for smart contracts.

The launch of the  Enterprise Ethereum Alliance will help to improve the lowering credibility of Ethereum, which was involved in a huge hacking attack last summer. In June, DAO, an organization built on the Ethereum blockchain, lost 3.5 million of ether as a result of an attack.