EY launches Ethereum-based blockchain solution to streamline business contracts

Accounting firm EY has launched an Ethereum-based blockchain solution to help businesses execute complex agreements efficiently while cutting costs and bolstering security.

On April 17, EY announced the launch of the EY OpsChain Contract Manager (OCM), a blockchain-enabled solution designed to overcome barriers like managing multiple business agreements across internal and external operational and technology silos.

The blockchain solution also allows multiple parties to synchronize data among business partners. It also uses smart contracts to enforce key agreements such as standardized pricing, volume discounts, rebates, and strike prices.

The Big Four firm cited statistics from Zion Market Research, which projects that the global smart contracts market will reach $1 billion by 2030. The compound annual growth rate (CAGR) is expected to be around 24% between 2023 and 2030.

EY OCM, which debuted at the annual EY Global Blockchain Summit, runs on the Ethereum blockchain. This ensures that it operates in a decentralized manner within a stable environment.

“Deploying on a public blockchain is not only cheaper, but also much more scalable, helping enable many-to-many integrations on an open platform with no one company having an unfair advantage by controlling the network.”

Paul Brody, EY global blockchain leader

EY OCM uses an API to manage smart contract providers. This allows firms to create personalized user interfaces and enable the configuration of standard pre-built contracting models. The initial set of pre-built models includes Power Purchase Agreements for renewables.

Furthermore, EY stated that the solution can automatically validate contract terms using real-time checks. It also analyzes policy compliance and instantly alerts users to any inconsistencies. As a result, transactions that do not comply with the contract requirements are blocked from proceeding.

This helps to avoid a strategic advantage for either a buyer or a seller. Additionally, it helps to reduce the high costs associated with launching and managing a private network. It also tackles the concerns of exchanging sensitive company information through a consolidated industry portal.

The latest development marks another instance of EY’s involvement with the blockchain sector. In October 2023, EY announced the rollout of the fourth generation of its EY blockchain analytics tool.

At that time, EY said that the Reconciler tool would assist Fidelity in improving its internal risk management for digital assets.

In September 2021, EY said it would use Polygon with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.