Ernst & Young has launched an Ethereum-based OpsChain Contract Manager, representing a significant step towards simplifying complex business agreements while ensuring confidentiality, efficiency, and cost-effectiveness.
Ernst & Young’s New Blockchain Tool
Accounting giant EY has launched a new blockchain tool aimed at simplifying complex business agreements while reducing costs and ensuring security. Known as the EY OpsChain Contract Manager (OCM), this Ethereum-based solution targets challenges such as managing agreements across various operational and technological boundaries, both internally and externally.
Making The Best Of Public Blockchain
EY unveiled the OCM platform during its annual Global Blockchain Summit. Operational on the Polygon proof-of-stake blockchain, the tool is poised to transition to the Ethereum mainnet. This strategic move capitalizes on Polygon's lower transaction fees while preparing for Ethereum's extensive network reach.
EY's Global Blockchain Leader, Paul Brody, emphasized the advantages of deploying on a public blockchain, saying,
“Deploying on a public blockchain is not only cheaper but also much more scalable, helping enable many-to-many integrations on an open platform with no one company having an unfair advantage by controlling the network.”
Improving Confidentiality with ZK-Proofs
One of the standout features of the OCM platform is its use of zero-knowledge proofs (ZKP) on the Ethereum network to ensure contract confidentiality without compromising efficiency. ZKPs allow parties to verify information accuracy without revealing sensitive details, thus safeguarding critical contract terms, transaction specifics, and confidential value chain information.
Automated Validation and Policy Adherence
The EY team highlighted the OCM's capability to automatically validate contract terms through real-time checks, ensuring policy adherence and promptly notifying users of any discrepancies. By preventing non-compliant transactions, the platform levels the playing field for buyers and sellers alike while also reducing the expenses associated with establishing and maintaining private networks.
Talking about the efficiency of automating contracts, Paul Brody said,
“We’ve identified from past client work that contract automation can improve accuracy while cutting cycle times by more than 90% and overall contract administration costs by nearly 40%. With our zero-knowledge privacy technology, we have industrialized this capability, and we can now get these benefits at a fraction of the up-front cost.”
EY's Continued Blockchain Initiatives
This latest development is another step forward in EY's ongoing commitment to blockchain technology. Previously, the company introduced blockchain solutions aimed at enhancing transparency and accountability in government operations.
It has also collaborated with industry leaders like ConsenSys and Microsoft to develop the Baseline protocol, a suite of blockchain tools for enterprises. Moreover, EY's integration of Polygon with flagship blockchain services further solidifies its position in the blockchain ecosystem.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
