Last updated:
April 17, 2024 00:01 EDT | 2 min read
EY, a prominent accounting firm, has introduced a blockchain solution based on Ethereum to streamline business operations. The newly launched EY OpsChain Contract Manager (OCM) aims to enhance efficiency, cut costs, and bolster security measures.
The EY OpsChain Contract Manager (OCM) is specifically tailored to address challenges in managing intricate business agreements that span across internal and external operational and technological divisions. It facilitates seamless data synchronization among multiple parties and enforces crucial terms using smart contracts, such as standardized pricing, volume discounts, rebates, and strike prices.
Citing insights from Zion Market Research, EY highlighted the significant growth potential of the global smart contracts market, with projections indicating a value of $1 billion by 2030 and a compound annual growth rate (CAGR) of approximately 24% from 2023 to 2030.
Unveiled at the annual EY Global Blockchain Summit, the EY OCM operates on the Ethereum blockchain, ensuring decentralized operations within a secure environment.
Paul Brody, EY’s global blockchain leader, emphasized the advantages of deploying on a public blockchain, citing cost-effectiveness and scalability as key benefits. This approach fosters many-to-many integrations on an open platform without any single entity exerting undue influence by controlling the network.
Enhanced Operational Efficiency through Automated Policy Enforcement
The EY OCM leverages an API to streamline the management of smart contract providers, enabling firms to create customized user interfaces and configure standard pre-built contracting models. The initial suite of pre-built models includes Power Purchase Agreements tailored for renewable energy contracts.
Moreover, the tool offers real-time validation of contract terms, monitors policy compliance, and promptly alerts users to any discrepancies. This proactive approach prevents transactions that do not align with the contract terms from progressing, thereby ensuring a level playing field for all parties involved.
This automated policy enforcement not only prevents strategic advantages for buyers or sellers but also reduces the costs associated with establishing and operating private networks. It addresses concerns related to sharing sensitive business data via centralized industry portals, enhancing security and transparency.
EY’s Continued Commitment to Blockchain Innovation
EY’s foray into blockchain technology extends beyond the EY OCM launch. In October 2019, the company introduced a blockchain solution to assist governments in enhancing transparency and accountability for citizens, particularly in tracking budgets, expenditures, and outcomes.
In March 2020, EY unveiled the Baseline protocol, a suite of public domain blockchain tools tailored for enterprise applications. Developed in collaboration with ConsenSys and Microsoft, this initiative aims to drive blockchain adoption among businesses.
Building on its blockchain initiatives, EY announced in September 2021 its integration of Polygon with flagship blockchain services like EY OpsChain and EY Blockchain Analyzer, further expanding its blockchain capabilities and offerings.