EY Introduces Blockchain Solution on Ethereum to Simplify Business Contracts
EY, the accounting firm, has recently launched a blockchain-based solution called EY OpsChain Contract Manager (OCM) that aims to streamline the execution of complex agreements for businesses. This solution is designed to address the challenges of managing multiple agreements across various operational and technology silos, both internally and externally.
One of the key features of the blockchain solution is its ability to synchronize data among multiple parties involved in a business agreement. This ensures that all stakeholders have access to the most up-to-date information. The solution also leverages smart contracts to enforce important agreements, such as standardized pricing, volume discounts, rebates, and strike prices.
According to Zion Market Research, the global smart contracts market is projected to reach $1 billion by 2030, with a compound annual growth rate of around 24% between 2023 and 2030. EY recognizes this potential and has developed the EY OCM to cater to the growing demand for efficient and secure contract management solutions.
The EY OCM runs on the Ethereum blockchain, ensuring decentralization and stability. It utilizes an API to manage smart contract providers, allowing businesses to create personalized user interfaces and configure standard pre-built contracting models. One such model included in the initial set is the Power Purchase Agreement for renewables.
In addition, the EY OCM has the capability to automatically validate contract terms in real-time, ensuring compliance with policies and alerting users to any inconsistencies. This helps prevent transactions that do not meet the contract requirements from proceeding, preventing any strategic advantage for either party involved. It also reduces the costs associated with launching and managing a private network and addresses concerns about exchanging sensitive company information through a consolidated industry portal.
This recent development is part of EY’s ongoing involvement in the blockchain sector. In 2023, EY introduced the fourth generation of its EY blockchain analytics tool, the Reconciler, which aimed to assist Fidelity in improving its internal risk management for digital assets. In September 2021, EY announced its partnership with Polygon to enhance its flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.
Overall, EY’s launch of the EY OpsChain Contract Manager demonstrates its commitment to providing innovative solutions that help businesses streamline their operations, reduce costs, and enhance security in the increasingly digital world.
