The blockchain solution offers the capability for multiple parties to synchronize data among business partners and utilize smart contracts to enforce key agreements. A report by Zion Market Research, cited by the Big Four firm, projects that the global smart contracts market will grow to $1 billion by 2030, with an expected compound annual growth rate (CAGR) of around 24% between 2023 and 2030. EY OCM, introduced at the annual EY Global Blockchain Summit, operates on the Ethereum blockchain, ensuring decentralized operation in a stable environment. According to EY global blockchain leader Paul Brody, deploying on a public blockchain is more cost-effective and scalable, enabling many-to-many integrations without favoring any single company.
EY OCM employs an Application Programming Interface (API) to manage smart contract providers, enabling firms to create customized user interfaces and configure standard pre-built contracting models. The initial set of pre-built models includes Power Purchase Agreements for renewables. EY also highlighted that the solution can automatically validate contract terms using real-time checks, analyze policy compliance, and promptly alert users to any inconsistencies. This process ensures that transactions not complying with contract requirements are prevented, avoiding an unfair advantage for either party.
Furthermore, EY’s blockchain solution addresses the high costs associated with launching and managing a private network while also addressing concerns related to exchanging sensitive company information through a consolidated industry portal.