On 20 October 2017, Sberbank, a major state-owned bank in Russia, has joined the Enterprise Ethereum Alliance (EEA). 48 new members including HP and Japanese telecom KDDI have joined the EEA earlier this week. Sberbank joined EEA in order to test the applicability of the Ethereum blockchain network on existing banking structure.To automate operations,major financial institutions in Russia have started to consider the integration of Ethereum.
“Maybe they are a bit optimistic, but two to two-and-a-half years is the horizon within which we can speak about the application of blockchain commercial operation”, said Sberbank CEO Herman Gref in February.
As a part of the EEA initiative, JPMorgan have successfully developed and deployed blockchain networks like Quorum. JPMorgan’s Quorum blockchain was adopted by pharmaceutical giants Pfizer and Genentech which was structured after the Ethereum Go client for a combined share of $300 billion. Similar goals are expected by Sberbank in the mid-term to commercialize enterprise-grade blockchain networks that are useful for IT firms that work on technology and finance. Sberbank is planning to develop blockchain technologies by 2019 towards the vision of its CEO Herman Gref.
First Deputy Chairman of Sberbank’s Executive Board Lev Khasis stated:
“Sberbank’s joining the Enterprise Ethereum Alliance is an important stage in achieving the goals on our technology agenda. This membership implies for us access to cutting-edge developments and international expertise in Blockchain technology.”
As Vitalik Buterin previously stated:
“Bitcoin is currently processing a bit less than three transactions per second and if it goes close to four, it is already at peak capacity. Ethereum has been doing five per second and if it goes above six, then it is also at peak capacity. On the other hand, Uber on average does 12 rides per second, PayPal several hundred, Visa several thousand, major stock exchanges tens of thousands, and in IoT, you’re talking hundreds of thousands per second.”
By these, Sberbank should aim to reduce the tradeoff between flexibity and security and at the same time, to increase the decentralization in permissioned blockchain networks.