---
title: Extensions to Ethereum platform
type: article
date: 2018-12-17
source: website
original_url: "https://navveenbalani.dev/index.php/articles/extensions-to-ethereum-platform/"
topics: ["blockchain"]
legacy_categories: ["blockchain"]
tags: ["blockchain-guide"]
summary: "In the earlier article, we have been talking about the permissionless open source Ethereum platform (available at https://ethereum.org/). Let’s refer to this as a Base Ethereum platform. The base Ethereum platform is good for public related use cases where every node can…"
draft: false
---

In the earlier article, we have been talking about the permissionless open source Ethereum platform (available at https://ethereum.org/). Let’s refer to this as a Base Ethereum platform. The base Ethereum platform is good for public related use cases where every node can participate in a transaction. However, there are other scenarios which fall outside the public-permissionless kind of   use cases and therefore may require extending the Ethereum platform.

To understand this, take the example of applying the base Ethereum
platform in an enterprise use case, like a complex trade finance application,
which comprises of a consortium of banks, traders, sellers, government agencies
and shipment vendors. For such a use case, only authorized entity/nodes are
required to work together to realize a business goal. This is an example of a
permissioned blockchain, where only known nodes/entity can join the network and
have the ability to commit the transactions. Now, to arrive at a consensus in a
permissioned blockchain, you probably need a different consensus algorithm,
where a group of nodes/entity, which is accountable, provides endorsement and
consensus for that transaction. For example, a trade finance blockchain network
may authorize an importer bank and a buyer as endorsers of the trade terms. It
means the terms cannot be deemed legal without their digital signatures.

Another aspect of the enterprise use case is the turnaround time. The
time required to propose and commit the transaction should be very fast for
such enterprise-level use cases. The concept of mining and solving complex
mathematical equations doesn’t make much sense for the permissioned network, as
it’s a network of known entities. Each of these entities in the permissioned
network has a specific role to play and collectively work towards realizing a
business goal through provenance and strong policy based consensus. For the
trade finance use case, the business goal could be end-to-end visibility,
accountability, secured trade, digitization, document confidentiality,
automation via smart contracts and time to settlement from months to day(s).

Another aspect of enterprise use case is the ledger visibility. As
there are transactions flowing throughout the network, it becomes imperative
that the data is visible only between interested entities part of the business
network. A simple example could be for instance, discounted product rates and
terms in the trade document should not be accessible to a shipment vendor.
There might be further requirements from regulations and audit side. So in
short, there is a need to define a private transaction channels where only
members within the channel has access to the data or ledger.

There might be many specific requirements that need to be addressed
for various other use cases, which would require modifications to the base
Ethereum platform or the Ethereum specification. There are many implementations
available, which has extended the base Ethereum platform to provide enterprise
specific  capability. The following are
some of the extensions:

- Quorum - Quorum is an Ethereum-based distributed
  ledger protocol with transaction/contract privacy and new consensus mechanisms.
  Quorum addresses the requirements stated above by making extensions to the base
  Ethereum platform.

For more details, refer to <https://github.com/jpmorganchase/quorum>

- Hydrachain - HydraChain is an extension of the
  base Ethereum platform, which adds support for creating permissioned
  distributed ledgers through byzantine fault-tolerant consensus protocol.

- Hyperledger Burrow - Hyperledger Burrow is a
  permissioned Ethereum smart-contract blockchain node. For details, refer to
  https://github.com/hyperledger/burrow

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*Note – As
blockchain being an ecosystem of business network, we are also seeing Alliances
and Consortiums being formed for driving blockchain platform and
implementations. For instance, The Enterprise Ethereum Alliance connects
Fortune 500 enterprises, startups, academics, and technology vendors with
Ethereum subject matter experts. We will see more alliances that will drive
Ethereum platform to provide enterprise-grade capabilities for handling the
most complex, highly demanding applications at the speed of business.*

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In the [next section](/articles/smart-contract-current-and-future-perspective), we will talk about some of the current challenges in Ethereum platform