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Big Four accounting firm Ernst & Young (EY) unveiled its new service for managing enterprise contracts through blockchain technology called OpsChain Contract Manager (OCM) on April 17.
The tool is designed to manage complex commercial agreements between multiple parties with greater security and privacy through blockchain technology. The service currently runs on Polygon's proof-of-stake (PoS) blockchain and is scheduled for a future upgrade to the ethereum mainnet.
CMO
OCM is designed to facilitate the secure handling of commercial contracts on a public blockchain, ensuring privacy by using zero-knowledge proofs to maintain contract integrity and confidentiality while improving time efficiency and reducing costs. costs.
It integrates with existing enterprise systems through a standardized API and supports multiple contract types, including volume purchasing agreements and pricing models that rely on market data.
While the service is currently touted to operate on ethereum, it actually uses Polygon PoS to capitalize on lower transaction fees that are attractive to EY's industrial user base, according to a Block report.
Paul Brody, head of EY's blockchain division since 2016, said Nightfall, the technology behind the service, originated on ethereum and has been tested on its testnet. The upcoming update will transition Nightfall to the ethereum mainnet and could include a Layer 3 upgrade to improve scalability and functionality.
Benefits of public blockchains
Brody also discussed the operational advantages of OCM, noting that contract automation can significantly reduce cycle times and administration costs.
He emphasized the scalability and neutrality benefits of deploying on a public blockchain, which prevents a single party from controlling the network. Brody also noted that the future of corporate blockchain applications is increasingly leaning towards public blockchains as they provide superior privacy and transparency compared to private blockchains.
The development comes in the wake of increased adoption of blockchain by major financial players. Notably, BlackRock recently launched a tokenized fund on ethereum, marking a significant step towards institutional commitment to blockchain technologies.
With the introduction of OpsChain Contract Manager, EY aims to improve the way companies manage contracts, improving the efficiency and transparency of processes through blockchain technology. The initiative positions EY as a pioneer in the integration of blockchain into mainstream business practices, setting a benchmark for the industry's movement toward adopting this technology in routine operations.
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