Global professional services firm Ernst & Young Global Ltd. unveiled a new blockchain-powered solution aimed at facilitating the execution of intricate business agreements, reducing costs, and ensuring security.

The EY OpsChain Contract Manager, introduced at the EY Global Blockchain Summit, leverages blockchain distributed ledger technology to enable multiple parties to synchronize data across various business partners and enforce critical terms through smart contracts. These terms encompass standardized pricing, volume discounts, rebates, and strike prices.

Utilizing Ethereum, the second-largest blockchain in terms of market capitalization after Bitcoin, the contract management tool offers an auditable yet secure environment for contract resolution. EY incorporates zero-knowledge proofs to ensure privacy for businesses, allowing one party to demonstrate knowledge about specific data without divulging the data itself.

According to EY global blockchain leader Paul Brody, automating contracts can significantly enhance accuracy, reduce cycle times by over 90%, and slash contract administration costs by nearly 40%. The integration of zero-knowledge privacy technology industrializes this capability, delivering these benefits at a fraction of the initial cost.

By leveraging Ethereum’s decentralized public blockchain, EY avoids conferring strategic advantages to buyers or sellers while eliminating the high expenses associated with establishing and operating a private network for transaction tracking and auditing. The smart contracts governing agreed-upon rebates and pricing uphold the integrity of business terms without necessitating exhaustive document reviews during or post transactions. Zion Market Research projects that the global smart contract market could reach \(1 billion by 2030, up from approximately \)1,750 million in 2022.

Deploying on a public blockchain not only proves cost-effective but also enhances scalability, facilitating many-to-many integrations on an open platform without any single entity gaining an unfair network advantage, as highlighted by Brody.

Businesses can seamlessly integrate EY OpsChain Contract Manager with their existing enterprise systems via a standardized application programming interface, ensuring interoperability with various external systems, including customer relationship management platforms and internet of things devices.

This solution caters to a wide array of business contract types, encompassing volume purchase agreements, volume discounts, rebates, and price models that monitor market data feeds. Additionally, it features real-time monitoring to automatically validate contract terms for policy compliance, promptly alerting contract parties to discrepancies to prevent non-compliant transactions.

Photo: Pixabay

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