EY, an accounting firm, has introduced a new blockchain solution based on Ethereum to streamline complex agreements, reduce costs, and enhance security for businesses.
On April 17, EY unveiled the EY OpsChain Contract Manager (OCM), a blockchain-powered tool aimed at addressing challenges related to managing various business agreements across different internal and external operational and technological divisions.
This blockchain platform enables multiple parties to synchronize data among business partners and utilizes smart contracts to enforce critical agreements such as standardized pricing, volume discounts, rebates, and strike prices.
Citing data from Zion Market Research, EY highlighted projections that the global smart contracts market will reach $1 billion by 2030, with a projected compound annual growth rate (CAGR) of around 24% between 2023 and 2030.
The EY OCM, launched at the annual EY Global Blockchain Summit, operates on the Ethereum blockchain, ensuring decentralized operations within a stable environment.
This blockchain solution uses an API to manage smart contract providers, enabling firms to create custom user interfaces and configure standard pre-built contracting models, including Power Purchase Agreements for renewables.
Additionally, EY emphasized that the platform can automatically verify contract terms through real-time checks, analyze policy compliance, and promptly notify users of any discrepancies, blocking transactions that do not adhere to contract requirements.
This approach prevents any unfair advantage for buyers or sellers, reduces the high costs associated with establishing and managing a private network, and addresses concerns related to sharing sensitive company information through a unified industry portal.
This recent development underscores EY’s continued commitment to the blockchain sector. In October 2023, EY introduced the fourth generation of its EY blockchain analytics tool, Reconciler, to assist Fidelity in enhancing internal risk management for digital assets.
Furthermore, EY announced plans in September 2021 to integrate Polygon with its flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer, showcasing its ongoing innovation and collaboration within the blockchain industry.