Ernst & Young taps ZK-proofs on Ethereum to automate contracts

Ernst & Young, one of the Big Four accounting firms, unveiled an Ethereum project with zero-knowledge proofs for their private clients. This innovative approach simplifies the process of managing intricate contract agreements.

The EY OpsChain Contract Manager (OCM) is referred to as such in a company announcement from April 17th. This tool will enable private businesses to efficiently manage intricate contractual agreements with discretion and cost savings.

EY’s Ethereum-based solution can be utilized in various contract types, including purchase agreements, rate cards, volume discount contracts, rebate contracts, and strike price contracts.

EY explained that they opted for Ethereum, a publicly accessible blockchain, rather than a private network to ensure fairness between parties and minimize the chance of confidential business data being inadvertently disclosed.

Paul Brody, EY’s Global Blockchain Leader, mentioned that the company developed OCM (Optical Character Macking) in response to recognizing the potential for significant enhancements in contract term accuracy as well as reducing cycle times by nearly 90% and administration costs by approximately 40%, based on prior client projects.

“With our zero-knowledge privacy technology, we have industrialized this capability, and we can now get these benefits at a fraction of the up-front cost.”

Ernst & Young taps ZK-proofs on Ethereum to automate contracts

The solution was launched at the annual EY Global Blockchain Summit on April 17.

Recently, Celisa Morin, a former executive at Grayscale, mentioned in an interview with CryptoMoon that traditional financial institutions have shown a growing preference for deploying their applications directly on public blockchains rather than private ones. BlackRock’s BUIDL project serves as a prominent illustration of this trend.

Since September 2021, accounting firm EY has been developing its blockchain enterprise product, OCM, with the assistance of Polygon. By December 2021, they had collaborated to create Nightfall, a private transaction solution based on Ethereum. However, Polygon’s role in OCM’s creation is not mentioned in EY’s most recent information sheet for this product.

Beginning in April 2019, EY initiated explorations into Zero-Knowledge proofs as part of an endeavor to construct a blockchain solution for auditing, taxation, and transaction surveillance. Ethereum has consistently been the preferred platform for EY in carrying out this project.

Last September, the company disclosed that they had invested a substantial $1.4 billion into AI technologies for their latest offering, This platform is designed to assist businesses in integrating AI solutions using EY’s own advanced language model, named EY AI EYQ.

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2024-04-18 05:27