Ernst & Young (EY), one of the largest accounting firms in the world, has unveiled a cutting-edge solution called EY OpsChain Contract Manager (OCM) that utilizes the Ethereum blockchain to automate contract management and prevent non-compliant transactions and errors.
OCM, which was launched during the 2024 EY Global Blockchain Summit in London, operates on the Ethereum public blockchain and is designed to facilitate the execution of complex and multi-party business agreements. It supports various types of business contracts, including volume purchase agreements, standardized rate cards, volume discounts, rebates, and price models dependent on market data feeds.
The main objective of EY OCM is to address the challenge faced by enterprises in managing business agreements that span across internal and external operational and technology siloes. The contract manager synchronizes data across business partners and ensures the enforcement of key business terms such as standardized pricing, volume discounts, rebates, and strike prices.
To ensure the confidentiality of critical information, EY OCM utilizes a technology known as zero-knowledge proofs (ZKPs). These protocols verify the validity of transactions without revealing the underlying information, thereby safeguarding contract terms and transaction details.
Paul Brody, EY Global Blockchain Leader, believes that contract automation can significantly enhance accuracy and reduce cycle times by more than 90%, as well as lower overall contract administration costs by nearly 40%. With the implementation of zero-knowledge privacy technology, EY has industrialized this capability, making it more accessible and cost-effective for businesses.
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