EY launches blockchain-based business contract management solution on Ethereum

Global professional services firm Ernst & Young Global Ltd. today announced the launch of a blockchain-enabled solution that enables businesses to enter into complex contracts and reduce costs while maintaining security.

Launched during the company's annual general meeting EY Global Blockchain Summit, EY OpsChain Contract Manager Blockchain Distributed Ledger Based on blockchain technology. This allows multiple parties to synchronize data across different business partners and enforce important conditions using smart contracts. These terms include standardized pricing, volume discounts, rebates, and strike prices.

This contract management solution is powered by Ethereum, the second largest blockchain by market capitalization after Bitcoin. Use decentralized technology to provide an auditable yet secure contract resolution environment. EY says it uses zero-knowledge proofs to capture corporate privacy. A zero-knowledge proof is a cryptographic protocol that allows one party to prove knowledge of a piece of data without revealing the data itself.

Paul Brody, Global Blockchain Leader at EY, said: “Past client work shows that contract automation can reduce cycle times by over 90% and improve accuracy while reducing overall contract management costs by nearly 40%. I understand,” he said. “Our zero-knowledge privacy technology has allowed us to industrialize this capability, and now you can enjoy these benefits at a fraction of the initial cost.”

EY believes that by leveraging Ethereum's decentralized public blockchain, we can ensure that buyers and sellers do not have a strategic advantage, while at the same time being able to build and operate a private network to track and audit transactions. He said that such high costs can be reduced. Smart contracts that execute and resolve agreed rebates and pricing preserve the value of business terms without the need for partners to create large amounts of documentation during or after the transaction.Zion market research predicted The global smart contract market is likely to grow from approximately $1.75 billion in 2022 to an estimated $1 billion by 2030.

“Deploying a public blockchain is not only cheaper, but also much more scalable, enabling many-to-many integration on an open platform, allowing any company to control the network. No more unfair advantage,” Brody said.

Companies can implement EY OCM into their existing enterprise systems through standardized application programming interfaces. It is designed to interoperate with a wide range of external systems, including customer relationship management systems and Internet of Things devices.

The solution is designed to support most business contract types, including volume purchase agreements, volume discounts, rebates, and pricing models that track market data feeds.

It also includes real-time monitoring to automatically validate contract terms for policy compliance. Contract parties receive instant alerts on discrepancies to ensure that deals that do not comply with contract terms do not go through.

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