Accounting firm EY launched one Ethereum-based blockchain solution on Wednesday. It aims to help companies execute complex agreements, reduce costs and maintain security.
It’s called the EY OpsChain Contract Manager (OCM) and is designed to address hurdles such as managing business agreements that span internal and external operational and technology silos. It also allows multiple parties to synchronize data between different business partners. Furthermore, it enforces crucial conditions through smart contracts, including standardized prices, volume discounts, rebates and strike prices.
The Big Four company pointed to data from Zion Market Research, which predicts that the global smart contracts market is expected to reach $1 billion by 2030. The compound annual growth rate (CAGR) is estimated at approximately 24% between 2023 and 2030.
EY OCM, unveiled at the annual EY Global Blockchain Summit, runs on the Ethereum blockchain. This guarantees its operation in a decentralized manner within a reliable environment.
“Implementation on a public blockchain is not only cheaper, but also much more scalable, allowing many-to-many integrations on an open platform, where no company has an unfair advantage by controlling the network,” said Paul Brody, EY global blockchain leader.
Automated policy enforcement for streamlined operations
EY OCM works via an API, simplifying the management of smart contract providers. In addition, companies can set up personalized user interfaces, allowing the configuration of standard pre-built contract models. Specifically, the first set of ready-made models includes power purchase agreements for renewable energy sources.
Furthermore, EY highlighted that the tool has the ability to automatically validate contract terms through real-time checks. It also monitors policy compliance and immediately notifies users of any discrepancies. Consequently, transactions that are not in accordance with the contract terms cannot proceed.
This helps prevent a strategic advantage for both a buyer and a seller. Furthermore, it helps reduce the high costs associated with setting up and operating a private network. It also addresses the risks associated with sharing sensitive company data through a centralized industry portal.
EY’s Growing Blockchain Footprint
This marks another example of EY’s involvement in blockchain. In October 2019, the company introduced a blockchain solution to help governments in increasing transparency and ensuring accountable outcomes for citizens. Furthermore, it facilitated tracking budgets, expenses and results.
In March 2020, EY has unveiled the Baseline protocol. This protocol includes a collection of public domain blockchain tools designed for enterprises. It was developed in collaboration with blockchain company ConsenSys and technology giant Microsoft.
In September 2021, EY said so polygon would use with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.