Ernst & Young, one of the Big Four accounting firms, has introduced a groundbreaking solution called the EY OpsChain Contract Manager (OCM) that utilizes Ethereum and zero-knowledge proofs to assist private businesses in executing complex contracts. This innovative solution, as explained by the firm in a statement on April 17, aims to facilitate timely, confidential, and cost-effective business agreements.
The EY OCM solution is designed to accommodate various types of contracts, including purchase agreements, standardized rate cards, volume discounts, rebates, and strike prices. In opting for Ethereum, a public blockchain, EY aims to prevent any party from gaining an unfair advantage over others and minimize the risk of exposing sensitive business information.
The development of OCM was driven by EY’s realization that contract accuracy could be enhanced while significantly reducing cycle times and administration costs by approximately 90% and 40% respectively. Paul Brody, EY Global Blockchain Leader, emphasized the importance of enhancing contract terms accuracy and streamlining processes.
The official launch of the EY OpsChain Contract Manager took place at the annual EY Global Blockchain Summit on April 17. This event coincided with an increasing trend among traditional financial institutions to favor public blockchains over private ones. BlackRock’s BUIDL initiative was cited as an example of this shift by Celisa Morin, a former Grayscale executive, in a recent interview with Cointelegraph.
The development of OCM began in September 2021, when Ernst & Young partnered with Polygon to build their blockchain enterprise product. Polygon’s collaboration with EY also led to the creation of Nightfall, an Ethereum-based solution for private transactions. However, the product information sheet for OCM does not mention Polygon, despite its involvement in the development process.
Ernst & Young has been actively exploring the use of zero-knowledge proofs since April 2019, particularly for the development of a blockchain-based platform for audit, tax, and transaction monitoring. Ethereum has consistently been the preferred blockchain for EY’s initiatives.
In a demonstration of its commitment to technological advancements, the firm invested $1.4 billion into AI technologies for the launch of its EY.ai platform in late September. This platform leverages a proprietary large language model called EY AI EYQ to assist companies in adopting artificial intelligence.
In conclusion, Ernst & Young’s introduction of the EY OpsChain Contract Manager showcases its innovative approach to revolutionizing contract execution for private businesses. By utilizing Ethereum and zero-knowledge proofs, EY aims to enhance efficiency, confidentiality, and cost-effectiveness in complex business agreements.