Accounting firm EY launched an Ethereum-based blockchain solution on Wednesday. It aims to help businesses execute complex agreements, reduce costs, and maintain security.
Called the EY OpsChain Contract Manager (OCM), it is designed to tackle hurdles like managing business agreements spanning internal and external operational and technology silos. It also enables multiple parties to synchronize data among various business partners. Additionally, it enforces critical terms through smart contracts, including standardized pricing, volume discounts, rebates, and strike prices.
The Big Four firm referenced data from Zion Market Research, which predicts the global smart contracts market is projected to reach $1b by 2030. The compound annual growth rate (CAGR) is estimated to be around 24% between 2023 and 2030.
EY OCM, unveiled during the annual EY Global Blockchain Summit, operates on the Ethereum blockchain. This ensures its operation in a decentralized manner within a reliable environment.
“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,” said Paul Brody, EY global blockchain leader.
Automated Policy Enforcement for Streamlined Operations
EY OCM operates through an API, facilitating the management of smart contract providers. Moreover, firms can establish personalized user interfaces, enabling the configuration of standard pre-built contracting models. Specifically, the initial suite of pre-built models includes Power Purchase Agreements for renewables.
Further, EY highlighted that the tool has the capability to automatically validate contract terms through real-time checks. It also monitors policy adherence and promptly notifies users of any discrepancies. Consequently, transactions not compliant with the contract terms are prevented from proceeding.
This contributes to preventing a strategic advantage for either a buyer or a seller. Additionally, it aids in mitigating high expenses associated with establishing and operating a private network. It also addresses the risks associated with sharing sensitive business data via a centralized industry portal.
EY’s Expanding Blockchain Footprint
This marks another instance of EY’s involvement with blockchain. In Oct. 2019, the company introduced a blockchain solution to assist governments in enhancing transparency and ensuring accountable outcomes for citizens. Additionally, it facilitated tracking of budgets, expenditures, and outcomes.
In March 2020, EY unveiled the Baseline protocol. This protocol comprises a collection of public domain blockchain tools designed for enterprises. It was developed in collaboration with blockchain company ConsenSys and tech giant Microsoft.
In Sept. 2021, EY said it would use Polygon with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.
