Accounting firm EY launched an Ethereum-based blockchain solution on Wednesday . It is designed to help companies make complex deals, cut costs and maintain security.
Called EY OpsChain Contract Manager (OCM), it is designed to overcome obstacles such as managing business contracts involving internal and external operational and technology silos. It also enables multiple entities to synchronize data between different business partners. In addition, it enforces critical terms with smart contracts, including standard pricing, volume discounts, rebates and performance pricing.
The Big Four company cited data from Zion Market Research, which predicts that the global smart contract market will reach $1 billion by 2030 . The compound annual growth rate(CAGR) between 2023 and 2030 is estimated to be around 24%.
EY OCM, unveiled at the annual EY Global Blockchain Summit, runs on the Ethereum blockchain. This ensures its operation in a decentralized manner, in a reliable environment.
“Not only is it cheaper to deploy on a public blockchain, but it’s also much more scalable, which helps enable integration on an open platform so that no company gains an unfair advantage by controlling the network,” – said Paul Brody, global blockchain EY leader.
Automated policy enforcement to streamline operations
EY OCM works through APIs to facilitate the management of smart contract providers. What’s more, companies can create personalized user interfaces to configure standard, off-the-shelf contracting models. In particular, the initial set of ready-made models includes power purchase agreements for renewable energy sources.
In addition, EY highlighted that the tool enables automatic validation of contract terms through real-time checks. It also monitors compliance and immediately notifies users of any discrepancies. As a result, transactions that do not comply with the terms of the contract cannot be completed.
This contributes to preventing a strategic advantage for both the buyer and seller. Additionally, it helps reduce the high expenses associated with setting up and operating a private network. It also addresses the risks associated with sharing sensitive business data through a centralized industry portal.
EY’s expanding blockchain reach
This is another example of EY’s commitment to blockchain. In October 2019, the company introduced a blockchain solution to help governments increase transparency and provide accountable results to citizens. Additionally, it made it easier to track budgets, spending and performance.
In March 2020, EY unveiled the Baseline protocol. The protocol comprises a collection of public domain blockchain tools for enterprises. It was developed in cooperation with blockchain company ConsenSys and technology giant Microsoft.
Additionally, in September 2021. EY said it will use Polygon with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.
