- One of the largest companies in the world, Ernst & Young, is driving the deployment of Ethereum Blockchain by Fortune 500 companies and is developing compliant solutions.
- During the presentation of EY Global Blockchain Summit 2020, the head of the Blockchain division pointed out the numerous advantages of the public Ethereum Blockchain.
Ernst & Young (EY), one of the four largest accounting firms in the world („Big Four“), has reaffirmed its commitment to the Ethereum Blockchain technology. During a recent online conference, Paul Brody, head of the company’s Blockchain division, emphasized that Ethereum is the best way for Fortune 500 companies to implement blockchain-based solutions. As a result, Ernst & Young continues to work on developing a corporate-focused Ethereum-based solution.
In his speech at the Online EY Global Blockchain Summit 2020, Brody highlighted the benefits of the public Ethereum blockchain and described why private blockchains are less suitable:
The only way blockchains can deliver on their true promise to the world is if public blockchain networks are the preferred way for companies and investors.
The comments indicate strong support for Ethereum from Ernst & Young. At the same time, Brody stressed the current challenge that the use of a public Blockchain is currently still met with great skepticism by most Fortune 500 companies. However, Ernst & Young would like to change this.
Brody explained during the online event that the public Blockchain, unlike private Blockchains, is able to provide Fortune 500 companies with the advantages they need. As Brody stated, the Blockchain is beyond the control of centralized organizations. Brody also believes that Fortune 500 companies want to utilize the power of the widespread network effects that the public Blockchains provide.
As the head of Ernst & Young’s Blockchain division explained, using a public blockchain can eliminate binding to a consortium of vendors, reduce research and development costs, and lower total cost of ownership through internal network effects. Last year, Brody pointed out other benefits of a public Blockchain:
Public Blockchains like Ethereum offer a better choice for business users. Even if they achieve monopoly-like dominance, there is no controlling entity that generates excessive profits – there is only one ecosystem of competing service providers.
In his speech, Brody also explained what has been achieved so far with the EY OpsChain, EY Blockchain Analyzed and Baseline Protocol releases and what the way forward is. As reported, Ernst & Young, in collaboration with Microsoft and ConsenSys, launched the Baseline Protocol in March, which enables companies to conduct private and secure transactions in public Ethereum networks using zk-SNARKs technology.
The aim of the protocol is to enable companies to use the Ethereum network with their legally compliant solutions. As Brody further explains, the OpsChain solution, which enables traceability of food, drugs and medical products as well as fund management and financial transactions, has been specifically updated for baseline with the new version 4.0.
Ernst & Young’s initiative for Ethereum is a strong sign that with the launch of ETH 2.0, its use in the corporate world could become a reality. However, the challenges are great for global companies to abandon their existing proprietary solutions and switch to a Blockchain system. However, with Ernst & Young and numerous other well-known partners within the Ethereum Enterprise Alliance, Ethereum seems to be positioned for real-world adoption in the crypto space at the moment.