Accounting company EY has introduced an Ethereum-based blockchain solution to aid businesses in efficiently executing intricate agreements while reducing costs and enhancing security.
The launch of the EY OpsChain Contract Manager (OCM) on April 17 was announced by EY. This blockchain-powered solution aims to address challenges such as managing numerous business agreements across internal and external operational and technology silos.
EY’s blockchain solution enables multiple parties to synchronize data among business partners and utilizes smart contracts to enforce critical agreements like standardized pricing, volume discounts, rebates, and strike prices.
Referencing statistics from Zion Market Research, which forecasts that the global smart contracts market will hit $1 billion by 2030, the Big Four firm highlighted a projected compound annual growth rate (CAGR) of approximately 24% between 2023 and 2030.
Debuting at the annual EY Global Blockchain Summit, EY OCM operates on the Ethereum blockchain, ensuring decentralized operation within a stable environment.
EY global blockchain leader Paul Brody emphasized the advantages of deploying on a public blockchain, citing cost-effectiveness and scalability, facilitating many-to-many integrations on an open platform without any single entity controlling the network.
EY OCM employs an API to manage smart contract providers, enabling firms to develop customized user interfaces and configure standard pre-built contracting models. The initial selection of pre-built models includes Power Purchase Agreements for renewable energy.
Moreover, EY highlighted that the solution can automatically validate contract terms through real-time checks, assess policy compliance, and promptly alert users to any discrepancies, preventing non-compliant transactions from progressing.
This approach prevents either party from gaining a strategic advantage and reduces the significant costs associated with establishing and maintaining a private network. It also addresses concerns related to sharing sensitive company data through a unified industry portal.
This recent development underscores EY’s continued engagement in the blockchain sector. In October 2023, EY unveiled the fourth generation of its EY blockchain analytics tool, the Reconciler, which was set to aid Fidelity in enhancing internal risk management for digital assets.
In September 2021, EY announced its collaboration with Polygon in integrating Polygon with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.