4 ms·

Those companies are using Ethereum without PoW in their private networks. They plug in a different consensus model.

kaoD 9y ago
Are they? I know it's possible but I can't think of a single use where traditional software and/or contracts are more convenient. What does Ethereum with no PoW bring to the table?
- homero 9y ago
  Centralization which is what they want
- craigc 9y ago
  The only thing I can think of is that the data you store is still distributed across multiple servers and can’t be removed or tampered with easily.
  - runeks 9y ago
    That's what every distributed database in the world does.
bo1024 9y ago
I don't understand what you mean by this. To my understanding, the companies' transactions/data are either on the Ethereum blockchain or not. Do you mean that they are using some other type of distributed ledger algorithm unconnected to Ethereum?
- homero 9y ago
  It's not, they're on enterprise eth, it's just being used to hype regular eth
- craigc 9y ago
  By joining the EEA you are not committing to use the public Ethereum blockchain. In most cases, I think companies are likely to use the Ethereum codebase and run their own private chain using their own servers. That mostly defeats the purpose of a blockchain, but it arguably still provides more security than using a single, centralized database somewhere.
- patrickk 9y ago
  You can use the Ethereum project code to speed up and reduce the cost of development, since a lot of man-hours has gone into R&D by the Ethereum foundation (you fork the codebase). Ethereum is open source, anyone can do this. EEA members will likely run private, permissioned blockchains, likely using proof of stake or some other energy efficient consensus mechanism. When you use a private blockchain, I like to think of it as being a bit like using a corporate intranet vs the public internet. It's disconnected, but it's possible at some point that data will flow across the public Ethereum blockchain if it's in the members' interest. For example, imagine a private, permissioned blockchain using proof of stake for the insurance industry[1]. Since it's permissioned, only the major players get invites, and since they know each other, trust is higher than on a public blockchain. Each player has a certain number of shares/tokens, used to validate transactions. They use this to streamline their business. At some point (purely speculative on my part) they may wish to share information with some other entity who is not a part of their private blockchain. It's possible that data from the private blockchain could pass along the public Ethereum blockchain at this point, perhaps to an external auditor, regulator, other financial institution, etc. [1] There is a proof of concept in this vein- http://www.swissre.com/reinsurance/insurers_and_reinsurers_launch_blockchain_initiative.html http://www.swissre.com/reinsurance/insurers_and_reinsurers_l...

kaoD 9y ago

Are they? I know it's possible but I can't think of a single use where traditional software and/or contracts are more convenient. What does Ethereum with no PoW bring to the table?

homero 9y ago
Centralization which is what they want
craigc 9y ago
The only thing I can think of is that the data you store is still distributed across multiple servers and can’t be removed or tampered with easily.
- runeks 9y ago
  That's what every distributed database in the world does.

bo1024 9y ago

I don't understand what you mean by this. To my understanding, the companies' transactions/data are either on the Ethereum blockchain or not. Do you mean that they are using some other type of distributed ledger algorithm unconnected to Ethereum?

homero 9y ago
It's not, they're on enterprise eth, it's just being used to hype regular eth
craigc 9y ago
By joining the EEA you are not committing to use the public Ethereum blockchain. In most cases, I think companies are likely to use the Ethereum codebase and run their own private chain using their own servers. That mostly defeats the purpose of a blockchain, but it arguably still provides more security than using a single, centralized database somewhere.
patrickk 9y ago
You can use the Ethereum project code to speed up and reduce the cost of development, since a lot of man-hours has gone into R&D by the Ethereum foundation (you fork the codebase). Ethereum is open source, anyone can do this. EEA members will likely run private, permissioned blockchains, likely using proof of stake or some other energy efficient consensus mechanism. When you use a private blockchain, I like to think of it as being a bit like using a corporate intranet vs the public internet. It's disconnected, but it's possible at some point that data will flow across the public Ethereum blockchain if it's in the members' interest. For example, imagine a private, permissioned blockchain using proof of stake for the insurance industry[1]. Since it's permissioned, only the major players get invites, and since they know each other, trust is higher than on a public blockchain. Each player has a certain number of shares/tokens, used to validate transactions. They use this to streamline their business. At some point (purely speculative on my part) they may wish to share information with some other entity who is not a part of their private blockchain. It's possible that data from the private blockchain could pass along the public Ethereum blockchain at this point, perhaps to an external auditor, regulator, other financial institution, etc. [1] There is a proof of concept in this vein- http://www.swissre.com/reinsurance/insurers_and_reinsurers_launch_blockchain_initiative.html http://www.swissre.com/reinsurance/insurers_and_reinsurers_l...