EY launches a new blockchain solution to manage business contracts on Ethereum

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EY has launched a new blockchain-based contract management tool, EY OpsChain Contract Manager (OCM), on the Ethereum public chain. OCM is designed to help businesses execute complex deals securely, efficiently and cost-effectively, the company shared in a press release on Wednesday.

As mentioned, OCM uses smart contracts on the Ethereum public blockchain to automate contract execution and enforce agreed terms. It also uses Zero-Knowledge Proofs (ZKPs) to encrypt sensitive data.

With the new solution, EY aims to eliminate the challenge of managing business agreements across multiple operational and technology departments within and outside organizations. Traditionally, managing complex contracts across multiple entities and systems can be slow, expensive and error-prone.

By using EY OCM, companies can synchronize data with trading partners to jointly execute key business terms, such as standard pricing and volume discounts, the company said. The solution is expected to create a safe and transparent environment for all parties.

According to the team, EY's solution can be integrated with existing enterprise systems through a standard API, supporting a wide range of business contract types.

In other words, enterprises of different sizes can use OCM to manage different business terms. Early adopters are currently testing the system with complex power purchase agreements that include market prices and strikes.

Paul Brodie, EY Global Blockchain Leader, highlights the effectiveness of contract automation. And so he said.

“We've identified from past customer work that contract automation improves accuracy while reducing cycle times by more than 90% and overall contract management costs by nearly 40%. With our zero-knowledge privacy technology, we've industrialized this capability, and now we can achieve these benefits at a minimal upfront cost. Public Deploying on the blockchain is not only cheaper, but also helps many-to-many integrations on an open platform so that no company has an unfair advantage in controlling the network.

The final step will follow the nightfall of EY's beta version in partnership with Polygon in September 2021. Nightfall is a privacy protocol that uses the Optimistic Zero Knowledge Package to facilitate private transactions on Ethereum.

Nightnight focuses on enabling private transactions for enterprises on Ethereum, addressing concerns such as network congestion and high transaction costs. Its primary use is to protect transaction privacy while leveraging the security features of the public Ethereum blockchain.

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