- EY's OpsChain Network Procurement solution promises to bring blockchain solutions to companies around the world.
- Using the Ethereum blockchain, companies can establish agreements without placing sensitive data on the blockchain.
- Paul Brody, EY global blockchain leader, says he believes 50% of business contracts will be done on the blockchain by 2030.
Accounting firm EY yesterday announced the release of the EY OpsChain Network Procurement (ONP) solution. This is EY’s first business application for the public Ethereum blockchain. The solution enables two companies to agree contracts on the blockchain while keeping sensitive information private.
The OpsChain Network Procurement gives companies the chance to use the Ethereum blockchain network to synchronize business agreements using smart contract technology. This is a major step in the growing relationship between traditional financial institutions and blockchain technology.
“Competition is increasing between networks of companies, their partners and suppliers. The ability to work as a network, above the level of any single ERP system, is crucial. Doing so on a public blockchain means not having to persuade a company or supplier to join a costly, closed proprietary network.” said Paul Brody, EY global blockchain leader, in a statement.
The ONP solution is built on the open source Baseline Protocol, which was developed by EY earlier this year, alongside Microsoft and Consensys (which funds an editorially independent Decrypt). The Baseline Protocol uses zero-knowledge proofs, off-chain storage and distributed identity technology. These solutions mean companies can establish agreements with each other without actually placing sensitive documents or private data on the blockchain itself.
In addition, the Baseline Protocol supports tokenization standards, which means purchase orders and other receivables can be tokenized and integrated into the decentralized finance (DeFi) ecosystem.
The beta version of the ONP solution is available and free for individual users now. Brody previously told Decrypt that EY believes that “by 2030, more than half of all new business contracts will be done on a blockchain.”
The opportunity to save time and money will appeal to companies across the globe. If the ONP solution delivers on its promise, Brody’s prediction just might come true.