Big Four accounting firm Ernst & Young (EY) is making waves in the blockchain industry by leveraging the power of zero-knowledge proofs (ZK-proofs) on the Ethereum network to automate complex contracts. This innovative solution, dubbed EY OpsChain Contract Manager (OCM), aims to streamline and enhance how private businesses manage agreements.
According to a press release issued by EY on April 17, 2024, OCM facilitates the timely, confidential, and cost-effective execution of intricate business contracts. The Ethereum blockchain serves as the underlying platform, while ZK-proofs ensure the privacy of sensitive data involved in the contracts.
EY highlights several contract types that can benefit from OCM, including purchase agreements, standardized rate cards, volume discounts, rebates, and strike prices. By automating these agreements on a secure and transparent blockchain platform, businesses can potentially reduce errors, expedite processes, and minimize administrative costs.
One of the key advantages of using Ethereum for this solution is its public nature. EY explains that choosing a public network like Ethereum over a private one offers several benefits. Public blockchains are generally considered more cost-effective, and the transparency they provide helps prevent any one party from gaining an unfair advantage in a contract.
This development signifies a growing trend of established firms embracing blockchain technology for real-world applications. EY’s OCM demonstrates the potential of ZK-proofs and Ethereum to revolutionize contract management, particularly within the realm of private businesses. As the technology matures and adoption increases, we can expect to see even more innovative use cases emerge, transforming how businesses operate and collaborate.
