Accounting firm EY has launched a new Ethereum-based blockchain solution called EY OpsChain Contract Manager (OCM) to help businesses streamline complex agreements, reduce costs, and enhance security. The tool is designed to address challenges related to managing business agreements across different operational and technology silos and allows multiple parties to synchronize data. It also enforces critical contract terms through smart contracts, including standardized pricing and volume discounts. EY cited data from Zion Market Research predicting that the global smart contracts market will reach $1 billion by 2030 with a CAGR of 24% from 2023 to 2030.
The EY OCM operates on the Ethereum blockchain and is deployed in a decentralized manner within a reliable environment. This approach is seen as more cost-effective and scalable, enabling many-to-many integrations on an open platform without any company having undue control over the network. Automated policy enforcement is a key feature of the tool, allowing for real-time validation of contract terms, monitoring of policy adherence, and prompt notifications of any discrepancies. This helps prevent transactions from proceeding if they do not comply with the contract terms, thereby ensuring fairness and reducing expenses associated with private networks.
EY has been actively expanding its footprint in the blockchain space, with initiatives such as introducing a blockchain solution for governments to enhance transparency and accountability. The company also collaborated with ConsenSys and Microsoft to develop the Baseline protocol, a collection of public domain blockchain tools for enterprises. In September 2021, EY announced plans to utilize Polygon in conjunction with its flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer. These initiatives demonstrate EY’s commitment to leveraging blockchain technology for various use cases across different industries.
The EY OCM operates through an API, allowing for the management of smart contract providers and the creation of personalized user interfaces for standard pre-built contracting models. The tool includes a suite of pre-built models, such as Power Purchase Agreements for renewables, and has the capability to automatically validate contract terms and enforce policy adherence in real-time. By preventing transactions that do not comply with the contract terms, the tool helps mitigate risks associated with sharing sensitive business data via a centralized industry portal.
EY’s decision to launch the EY OCM on the Ethereum blockchain reflects a strategic choice to leverage the benefits of operating on a public blockchain, such as cost-effectiveness and scalability. By deploying on a decentralized platform, EY aims to enable efficient integration among various business partners without any single entity having a dominant position in controlling the network. The tool’s automated policy enforcement capabilities further enhance its value proposition by ensuring fair transactions and reducing the expenses associated with establishing and operating private networks. EY’s track record of involvement in blockchain initiatives underscores its commitment to driving innovation and efficiency in various industry sectors through the adoption of blockchain technology.
Overall, EY’s launch of the Ethereum-based EY OpsChain Contract Manager represents a significant step in leveraging blockchain technology to enhance business operations and improve contract management processes. By providing a secure platform for managing complex agreements, reducing costs, and enforcing critical contract terms through smart contracts, EY aims to address key challenges faced by businesses in managing agreements across operational and technology silos. The tool’s deployment on the Ethereum blockchain and its automated policy enforcement capabilities highlight EY’s commitment to driving efficiency and innovation in the blockchain space, as evidenced by its expanding blockchain footprint and ongoing collaboration with industry partners to develop cutting-edge blockchain solutions for enterprises.
