Ernst & Young (EY), one of the ‘Big Four’ public service firms, has devised a solution that allows businesses to enjoy the full benefits of private transactions over a public blockchain. This they have called the EY Ops Chain Public Edition (PE).
Running on the public Ethereum blockchain, the solution leverages on the privacy benefits of zero-knowledge proofs (ZKP) and the security or Ethereum itself, which is powered by thousands of distributed computers spread across the world. The audit and advisory service firm, EY, has an international presence with more than 250,000 employees across 150 countries. The firm has been on the forefront searching for different ways of spurring enterprise adoption of blockchain technologies.
Zero-Knowledge proof is a verification protocol where transaction authentication can be done without exchanging passwords. Since there is nothing changing hands, it means nothing can be stolen guaranteeing security. ZKP brings to the table security and unparalleled protection during communication because going forward businesses would actually exchange files, execute transactions, and literally transform the very concept of online privacy.
EY Ops Chain Public Edition (PE) to Spur Blockchain Adoption
According to PRNewsWire, the incorporation of ZKP on Ethereum’s blockchain will dramatically reduce the barriers of entry. This is because adopting enterprises would tokenize their offerings in a standard manner and transfer the same tokens privately over a secure platform without breaking any consensus algorithms.
EY’s innovative solution is the first of its kind, and a product of their tireless R&D at the EY blockchain labs, whose offices are in London and Paris. Aside from the PE version, infused in the same technology would be tracking capabilities called EY Blockchain Private Transaction Monitor. However, the technology is still under review. Nonetheless, it would come in handy once it goes live.
While speaking about the launch, Paul Brody, the leader of EY Global Innovation said:
“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”
The Advantages of Private Networks over Public Blockchains as Ethereum
Even though blockchain is transformational and even disruptive, its only caveat is the transparency and the openness behind its operations. Security is virtually guaranteed. But this comes at the expense of privacy in a trilemma along with decentralization. Some entities and big corporations are very protective of their data and unwilling to sacrifice. Therefore, by creating a solution that handles privacy while upholding the security of the masses, EY has literally melted down previous impediments which were hampering overall blockchain adoption.
Besides, with ZKP there is no need for enterprises to start from scratch with the expense, time and money developing their own protocols. Though private blockchains are advantageous in scalability, immutability and speed, the technical know-how and the incentivization needed from enterprises to develop their own is lacking.
Ethereum remains a go-to platform for smart contract and dApp development reflected by the number of on-chain projects and applications choosing it over other alternatives. The developers continue to devise different ways of solving scalability, with Vitalik Buterin proposing zk-SNARKs, and other upgrades in the pipeline. Once implemented, Ethereum will be a better, more secure and faster blockchain further encouraging adoption, and a subsequent increase in ETH market value.
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