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Ernst & Young has unveiled a blockchain solution that aims to assist businesses in executing complicated agreements, reducing expenses, and ensuring security.
Ernst & Young Global Ltd., a global professional services company, has introduced a blockchain-based solution. It will enable businesses to execute complicated business agreements while ensuring security and minimizing costs.
EY Global Blockchain Summit
During the EY Global Blockchain Summit, the company launched EY OpsChain Contract Manager, which is based on blockchain distributed ledger technology. The solution allows multiple parties to synchronize data between different business partners and enforce key terms using smart contracts.
The key terms include ‘standardized pricing,’ ‘volume discounts,’ ‘rebates,’ and ‘strike prices’.
The contract management solution is powered by Ethereum, the second-largest blockchain by market capitalization after Bitcoin, which uses decentralized technology to provide an auditable and secure environment for contract resolution.
Ernst & Young asserts that it achieves privacy protection for companies by utilizing zero-knowledge proofs, which is a cryptographic process that enables one party to demonstrate knowledge about a specific piece of data without disclosing the actual data.
EY Global Blockchain Leader Speaks
Ernst & Young global blockchain leader Paul Brody said that they’’ve identified from past client work that contract automation can improve accuracy while cutting cycle times by more than 90%. Moreover, the overall contract administration cost accuracy can be improved by nearly 40%. They have industrialized the capability of zero-knowledge privacy technology, which enables us to reap the benefits at a significantly lower up-front cost.
Using Ethereum’s decentralized public blockchain helps prevent giving any strategic advantage to buyers or sellers while eliminating high costs for setting up and running a private network for tracking and auditing transactions. Partners don’t need to go through documents during or after transactions because smart contracts that execute and resolve agreed-upon rebates and pricing also preserve the value of business terms.
Growth In The Global Contract Market
Zion Market Research predicted that the global smart contract market could grow to an estimated $1 Billion by 2030 from around $1,750 Million in 2022. Opting for a public blockchain has the advantage of being cost-effective and highly scalable.
This, in turn, facilitates the seamless integration of multiple entities on an open platform, thereby preventing any one company from gaining an unfair advantage by monopolizing the network.
Businesses can incorporate Ernst & Young OCM into their existing enterprise systems utilizing a standardized application programming interface. This API is developed to be compatible with a wide variety of external systems, such as customer relationship management systems and Internet of Things (IoT) devices.
The solution is built to support a majority of business contract types, including volume purchase agreements, volume discounts, rebates, and price models that track market data feeds.
In addition, it features real-time monitoring that automatically validates contract terms for adherence to policies. Nevertheless, if there are any discrepancies, the contract parties will receive immediate alerts so that transactions that don’t comply with the contract terms will not be processed.
Summary
EY launched a blockchain-based solution called EY OpsChain Contract Manager. It enables multiple parties to synchronize data and enforce key terms using smart contracts. It can be integrated with existing enterprise systems and external systems such as customer relationship management systems and IoT devices.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, s or related indexes comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
