EY recently launched a new Ethereum-based blockchain solution called the EY OpsChain Contract Manager (OCM) aimed at helping businesses execute complex agreements, reduce costs, and maintain security. This tool is designed to address challenges in managing business agreements across internal and external operational and technology silos, while enabling multiple parties to synchronize data among various business partners. By utilizing smart contracts, EY OCM can enforce critical terms such as standardized pricing, volume discounts, rebates, and strike prices. The global smart contracts market is predicted to reach $1 billion by 2030, with a CAGR of around 24% between 2023 and 2030.
Unveiled during the annual EY Global Blockchain Summit, the EY OCM operates on the Ethereum blockchain, ensuring decentralized operation within a reliable environment. EY Global Blockchain Leader, Paul Brody, emphasized that deploying on a public blockchain is cost-effective and scalable, enabling many-to-many integrations on an open platform without any company having unfair control over the network. The tool operates through an API, allowing firms to manage smart contract providers and create personalized user interfaces for configuring standard pre-built contracting models. Initial suite includes Power Purchase Agreements for renewables, with the capability to automatically validate contract terms through real-time checks and monitor policy adherence to prevent any discrepancies.
EY’s expansion into blockchain technology has been evident in recent initiatives. In October 2019, the company introduced a blockchain solution to assist governments in enhancing transparency and ensuring accountable outcomes for citizens, specifically tracking budgets, expenditures, and outcomes. In March 2020, EY unveiled the Baseline protocol, a collection of public domain blockchain tools for enterprises developed in collaboration with ConsenSys and Microsoft. In September 2021, EY announced its plans to utilize Polygon with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.
With the launch of EY OpsChain Contract Manager (OCM), EY aims to provide businesses with an automated policy enforcement tool for streamlined operations. By facilitating the management of smart contract providers through an API and offering personalized user interfaces for configuring pre-built contracting models, EY OCM can validate contract terms in real-time, monitor policy adherence, and prevent non-compliant transactions. This approach not only prevents strategic advantages for buyers or sellers but also helps mitigate high costs associated with private network establishment and operation, while addressing risks related to sharing sensitive business data through a centralized industry portal.
Focusing on increasing efficiency and reducing costs, EY’s Ethereum-based blockchain solution, EY OCM, aims to revolutionize the management of complex agreements in business operations. By leveraging smart contracts to enforce critical terms, synchronize data among multiple parties, and ensure policy compliance, this tool offers a scalable, cost-effective, and secure platform for businesses to streamline their operations. EY’s continued involvement in blockchain technology, highlighted by initiatives such as the Baseline protocol and collaboration with Polygon, signifies the firm’s commitment to innovation and providing cutting-edge solutions to meet the evolving needs of the industry.
