On Wednesday, EY, a leading accounting firm, unveiled a new blockchain solution built on Ethereum. This innovative platform is designed to streamline complex agreement processes, cut costs, and enhance security measures for businesses.
The EY OpsChain Contract Manager (OCM) simplifies the complexities of handling business agreements across different departments and organizations. It facilitates seamless data synchronization among multiple parties and ensures adherence to essential contract terms using smart contracts, such as standardized pricing, volume discounts, rebates, and strike prices.
According to data cited by a leading accounting firm, Zion Market Research forecasts that the worldwide smart contracts market will hit $1 billion by 2030. The projected compound annual growth rate (CAGR) for the market is approximately 24% from 2023 to 2030.
At the EY Global Blockchain Summit, EY OCM was introduced as a system that utilizes the Ethereum blockchain. By running on this blockchain, EY OCM can function in a decentralized manner, ensuring a trustworthy operating environment.
Paul Brody, global blockchain leader at EY, emphasized that utilizing a public blockchain not only reduces costs but also enhances scalability. This facilitates numerous integrations between parties on a transparent platform where no single entity can dominate the network unfairly.
Automated Policy Enforcement for Streamlined Operations
EY OCM streamlines smart contract provider management by utilizing an API. Companies can create custom user interfaces for configuring standard pre-built contract models. The first set of these models includes Power Purchase Agreements designed for renewable energy.
Additionally, EY emphasized that the tool can validate contract terms automatically with real-time checks. It also keeps track of policy adherence and alerts users immediately of any inconsistencies. As a result, any transactions that do not comply with the contract terms are stopped from moving forward.
This helps to level the playing field between buyers and sellers and reduce the costs of setting up and maintaining a private network. It also helps to minimize the risks of sharing confidential business information through a centralized industry platform.
EY’s Expanding Blockchain Footprint
EY’s recent venture into blockchain technology showcases its commitment to innovation. By launching a blockchain solution in Oct. 2019, EY aimed to help governments improve transparency and ensure accountability for citizens. The solution also enabled better tracking of budgets, expenses, and results.
March 2020 saw the introduction of the Baseline protocol by EY, which is a set of blockchain tools tailored for businesses and available in the public domain. This initiative was a joint effort between EY, ConsenSys, a blockchain company, and Microsoft, a technology industry leader.
EY announced in September 2021 its plans to integrate Polygon into its prominent blockchain services, such as EY OpsChain and EY Blockchain Analyzer.
Frequently asked questions:
Can you explain EY’s blockchain solution built on Ethereum and its intended purpose?
EY recently unveiled the EY OpsChain Contract Manager (OCM), a cutting-edge blockchain technology utilizing Ethereum. This innovative tool aims to streamline the process of handling intricate business contracts, while also cutting down on expenses and bolstering security measures for companies.
Addressing challenges in managing business agreements is the main focus of the EY OpsChain Contract Manager (OCM).
The OCM is created to tackle difficulties like coordinating agreements between different operational and technological divisions, facilitating the synchronization of data among multiple parties, and enforcing important terms using intelligent contracts.
What unique characteristics does the EY OpsChain Contract Manager (OCM) possess?
The OCM uses the Ethereum blockchain to provide decentralization and trustworthy services. It enables automatic enforcement of policies, instant validation of contract terms, and policy compliance monitoring. Users are also quickly notified of any issues to avoid unauthorized transactions.
In what ways does the EY OCM help lower costs and improve operational effectiveness?
The EY OCM utilizes automation to enforce policies and instantly validate transactions, thwarting buyers or sellers from gaining unfair advantages, cutting costs linked to private networks, and managing risks about sharing important business information via centralized platforms.
Can companies personalize the EY OpsChain Contract Manager (OCM) to align with their unique requirements?
Indeed, companies can customize user interfaces and tailor standard pre-built contract templates to meet their specific needs. This tool provides the freedom to create different kinds of contracts, including Power Purchase Agreements for renewable energy sources.
In what way does EY’s blockchain tool, powered by Ethereum, connect with established systems?
The EY OCM utilizes an API to easily connect with smart contract platforms, allowing for smooth communication with current systems and technologies.
Why is utilising the EY OCM on the Ethereum blockchain important?
Utilizing Ethereum for deployment offers a cost-efficient and scalable approach, enabling multiple integrations on a decentralized platform free from centralized control. This promotes equity and inclusivity among all users.
In what ways does the EY OCM support and complement EY’s overall goals within the blockchain industry?
EY’s continued expansion into blockchain technology includes the introduction of the EY OCM, adding to their existing projects like government transparency solutions, the Baseline protocol, and partnerships with ConsenSys and Microsoft.
In what ways does the EY OpsChain Contract Manager (OCM) enhance regulatory compliance and mitigate risks?
The OCM allows companies to create uniform contract templates that meet legal regulations. By using instant validation and automatic enforcement of policies, it reduces the dangers of failing to comply with rules and promotes clarity in how businesses operate.
In what industries or scenarios do you think the EY Ethereum-powered blockchain tool would be most advantageous and why?
Industries such as finance, supply chain, healthcare, and energy can all find value in the versatility of the EY OpsChain Contract Manager (OCM). It can handle a variety of tasks such as managing trade finance agreements, supply chain contracts, healthcare data-sharing agreements, and renewable energy purchase agreements.
With its flexible and scalable features, this tool can seamlessly integrate into different business settings that require secure and streamlined contract management processes.
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