EY's Blockchain Aspirations: A Discussion with Clare Adelgren EY Global Head of Sales and Operations
EY has been making significant strides in the blockchain space for nearly a decade. In an interview with Clare Adelgren, EY Global Head of Blockchain Sales and Operations, we explore what the company aims to achieve and the potential impact of its blockchain initiatives on various industries.
EY's Blockchain Journey
According to Clare, EY has been investing in and building blockchain skills for about nine years. With a global workforce of around 400,000 employees in audit, tax, and consulting, EY is preparing for a future where enterprise-level technologies operate on public blockchains in a decentralized manner. "We aim to empower organizations to implement a public blockchain for their specific use cases while solving for privacy and confidentiality," Clare explains.
Key Products and Innovations
EY has developed several blockchain products, including Nightfall and Starlight, catering to different business needs. A recent addition is the Ops Chain Contract Manager, which focuses on contract execution involving all stakeholders. Clare highlights a notable example: "Our work with Microsoft enabled cutting access to royalties from 45 days to 4 minutes".
These blockchain agreements can also facilitate sport pricing and contract forecasting, enhancing value extraction over a contract’s lifecycle. Managed services agreements further allow tracking of KPIs and minimizing inefficiencies.
Relevance to Supply Chain and Other Industries
Clare underscores the growing relevance of blockchain, particularly in supply chain traceability, which is pertinent to various industries, including luxury goods. She cites a project with a client implementing blockchain for rare wine traceability as an example of ensuring authenticity and transparency.
Addressing Energy Consumption Concerns
When asked about the energy consumption and costs associated with blockchain, especially with EY’s interest in Ethereum, Clare acknowledges these concerns. She points to the technological maturity and the shift from proof of work to proof of stake, alongside emerging layer 2 models, as steps towards mitigating these issues. "Reducing a company's shipping costs and inefficiencies for example, can offset the energy and access costs of blockchain," she adds.
Real Use Cases versus Marketing Hype
Clare addresses skepticism about blockchain's practical use cases, noting that the technology is not intended to replace core infrastructure but to enhance transparency, trust, and efficiency in shareholder transactions. "This is not a back-office replacement solution," she clarifies. "It’s about examining blockchain tech from a use case standpoint."
Considerations for Potential Adopters
For companies considering EY’s blockchain solutions, Clare advises a thorough examination of their ecosystem and interactions with partners. Companies should identify external problems and assess how blockchain could supplement their operations. "They need to look beyond their boundaries and identify use cases of blockchain," she emphasizes.
Conclusion
EY’s initiatives in the blockchain space reflect a significant investment in exploring how this technology can address specific business needs. By focusing on practical applications, EY aims to demonstrate the tangible benefits of blockchain for enterprises.
Sources
https://www.ey.com/en_us/services/blockchain/platforms/contract-manager
https://www.ey.com/en_us/services/blockchain/platforms/opschain-traceability