On April 17th, Big 4 accounting firm Ernst & Young (EY) unveiled its new blockchain-based enterprise contract management service called OpsChain Contract Manager (OCM).
This tool is designed to manage complex multi-party business agreements with enhanced security and privacy through blockchain technology. The service currently runs on the Polygon proof-of-stake (PoS) blockchain and is ready for a future upgrade to the Ethereum mainnet.
OCM
OCM is designed to facilitate the secure processing of business contracts on a public blockchain and ensure privacy by using zero-knowledge proofs to preserve the integrity and confidentiality of contracts while improving time efficiency and reducing costs.
It integrates with existing enterprise systems through a standardized API and supports a variety of contract types, including volume purchase agreements and pricing models dependent on market data sources.
While the service is currently advertised as running on Ethereum, Polygon is actually using PoS to earn lower transaction fees that are attractive to EY's industrial user base, according to a report by Block.
Paul Brody, head of EY's blockchain division since 2016, said Nightfall – the technology behind the service – was created on Ethereum and tested on its testnet. The upcoming update will transition Nightfall to the Ethereum mainnet and may include a Layer-3 upgrade to improve scalability and functionality.
Advantages of public blockchains
Brody also commented on the operational benefits of OCM, noting that contract automation can significantly reduce cycle time and management costs.
He highlighted the scalability and neutrality benefits of being deployed on a public blockchain that prevents any one party from controlling the network. Brody also noted that the future of enterprise blockchain applications is increasingly leaning towards public blockchains as they provide better privacy and transparency compared to private blockchains.
This development comes as a result of the increased adoption of blockchain by major financial players. BlackRock recently launched a tokenized fund on Ethereum, marking a significant step towards institutional engagement with blockchain technologies.
With the introduction of OpsChain Contract Manager, EY aims to improve the way businesses manage contracts, increasing process efficiency and transparency through blockchain technology. The initiative positions EY as a pioneer in the integration of blockchain into conventional business practices and sets the benchmark for the direction of the industry to incorporate the technology into routine operations.
