Ernst & Young Unveils Ethereum-Based Solution for Efficient Management of Complex Contracts
Summary:
Ernst & Young (EY) has unveiled the EY OpsChain Contract Manager (OCM), an Ethereum-based product designed to help private business clients manage complex contracts efficiently and securely. This public blockchain solution prevents any party from gaining an undue advantage and reduces the risk of sensitive business details leakage. The initiative was influenced by past client interactions, emphasizing improving contract term accuracy and decreasing cycle times and administrative costs. Ethereum has consistently been EY's preferred blockchain for development. The launch of OCM follows EY's significant investment in AI for their EY.ai platform.
Accounting behemoth Ernst & Young has initiated a solution based on Ethereum utilizing zero-knowledge proofs, aiming at empowering its private enterprise clients to smoothly manage intricate contracts. The service, known as EY OpsChain Contract Manager (OCM), is designed to allow private companies to undertake complicated business contracts efficiently, discreetly, and cost-effectively, as outlined in a statement on April 17th.
EY's Ethereum-based solution can be applied in various contracts such as purchase agreements, standardized rate cards, volume rebates, strike prices, and more. The company chose Ethereum, a public blockchain, over a private network to prevent any party from gaining an upper hand and to safeguard against the risk of leaking critical business information.
EY developed OCM following the realization from past client engagements that the precision of contract terms could be enhanced, resulting in the reduction of cycle times and administrative expenses by approximately 90% and 40% respectively, said Paul Brody, EY Global Blockchain Leader. He mentioned that they have commercialized this capability with their zero-knowledge privacy technology, offering such advantages at a fraction of the initial cost.
The unveiling of the solution was done at the EY Global Blockchain Summit held on April 17. Celisa Morin, a former executive at Grayscale, in a recent interaction with Cointelegraph drew attention to the trend of Traditional Finance (TradFi) institutions leaning towards using public blockchains over private ones in the past months, using BlackRock’s BUIDL as a prototypical example.
EY has been working on OCM since around September 2021 when it chose Polygon to aid in the construction of its enterprise blockchain product. With Polygon's assistance, EY developed Nightfall—an Ethereum-based enterprise solution for managing private transactions—later in December 2021. Although, no references to Polygon are made in EY's most recent product data sheet for OCM.
EY started exploring zero-knowledge-proofs in April 2019 with the intention of developing a blockchain-based audit, tax, and transaction monitoring platform. It has consistently chosen Ethereum as its preferred chain to build upon. Last September, the firm disclosed an investment of $1.4 billion into AI technologies intended for their new EY.ai platform, which is designed to help businesses integrate AI via its self-developed large language model, EY AI EYQ.
Published At
4/18/2024 5:09:07 AM
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