Ernst & Young (EY) is one of the largest professional services firms in the world and it is also one of the “Big Four” accounting firms. Recently, It has devised a solution which allows businesses & participants to enjoy the benefits of doing private transactions on a public blockchain which is been called EY Ops Chain Public Edition.
It runs on the public Ethereum blockchain, which leverages on the benefits of zero-knowledge proofs and the security of the Ethereum itself. The zero-knowledge proof is a verification protocol where transaction authentication can be done without revealing any information excluding the fact that the specific statement is true or not.
How it Works
EY Ops Chain uses ZKP technology on the Ethereum’s blockchain which would reduce the barrier of entry without breaking the consensus algorithm. The businesses and participants would feel some level of privacy.
Paul Brody, EY Global Innovation Leader, Blockchain, says:
“EY Ops Chain PE is a first-of-its-kind application and a major step forward that empowers blockchain adoption. Private blockchains give enterprises transaction privacy, but at the expense of reduced security and resiliency. With zero-knowledge proofs, organizations can transact on the same network as their competition in complete privacy and without giving up the security of the public Ethereum blockchain.”
This is the first time zero-knowledge proof technology is being used on Ethereum. It’s an interesting concept that has been seen in various banking applications. It brings to the table security and protection during communication because business would actually exchange files, execute transactions and perform the concept of online privacy.
Brody says: “The biggest challenge for enterprises’ blockchain adoption is the ability to on-board business partners into their private or consortium blockchain network. Using the standard, secure infrastructure of a public blockchain while keeping their transactions private, businesses greatly reduce the expensive and time consuming process of setting up private networks and on-boarding business partners one at a time.”
Besides, with ZKP there isn’t going to be needed for enterprises to start from scratch with the time and money developing their own blockchain. The new concept inspires confidence for businesses and investors as they enjoy the benefits.
With time, the reluctance to make use of blockchain for business transactions would drastically reduce.