With the increasing surge in demand for DeFi (decentralized finance), Ernst & Young Global Limited, one of the ‘Big 4’ accounting firms globally, has announced extending its support towards expanding and improving the blockchain industry.
To widen the scope of DeFi, EY has announced to invest a sum of $100 million that would be used towards the research and development of distributed ledger technologies for a wide range of DeFi applications. Accordingly, on May 17, EY launched its second-generation test studio for reviewing smart contracts and security tokens. Smart contracts and tokenization have earlier proved beneficial for executing multi-party B2B transactions. Thus, such a huge investment from EY is expected to boost product development further, thereby improving customer experiences.
EY launched the second-generation review studio via its Blockchain Analyzer tool suite blockchain.ey.com. The older version of the review tool was launched in 2019 that supported more than 100 tests that apply to the ERC-20 standard, the technical standard for smart contracts on the Ethereum blockchain. The new version of the review tool has been upgraded with advanced features that would help developers execute complex DeFi contracts. According to EY, the new testing tool offers a blend of compliance testing and traditional code review. It also supports mainnet transaction simulation along with custom-intelligent contract testing.
Furthermore, the newly launched review studio has the potential to stimulate how the contracts perform even before their deployment on the network. It would also help test the most complex of the DeFi contracts against the hardest of the attacks.
EY revealed that this is not the first time the company is contributing to the development of the blockchain industry. Previously, Birra Peroni, a leading Italian beer company, had been using EY’s Ethereum based supply chain solution for minting NFTs (non-fungible tokens) to notarize company data and track the batches of the beer.
Apart from this, the EY team also announced their contribution of source code in the public domain of a zero-knowledge proof (ZKP) prototype compiler. The prototype, ‘Starlight’, was built to provide support for preserving commercial confidentiality on any shared network. It provides complex business agreements under complex circumstances where the business logic needs to be shared between parties on a public domain, keeping the data security intact. Accordingly, in April 2019, a ZKP protocol was made available to the public in the name ‘Nightfall,’ which helped the companies carry out private and secure transactions on the public blockchain networks.
As organizations are becoming cautious about keeping the privacy and sovereignty of their company’s data intact on a shared blockchain network, both Nightfall, and Starlight help address the organizations’ confidentiality issues.