EY launches Blockchain Baseline Protocol
EY has launched the Baseline protocol, a new package of public domain blockchain tools that will allow enterprises to build and deploy procurement and other business processes securely and privately on the public Ethereum blockchain. EY developed the Baseline protocol in cooperation with ConsenSys and Microsoft.
Paul Brody, EY Global Blockchain Leader, stated, “Over the last two years, EY has been advancing the state of the art for private, secure transactions on public blockchains. This initiative builds on that groundwork and starts filling in gaps such as enterprise directories and private business logic so enterprises will be able to run end-to-end processes like procurement with strong privacy.”
The Baseline protocol integrates multiple technologies including zero knowledge proofs, off-chain storage and distributed identity so that enterprises can set up and synchronize processes and agreements using common standards, with full privacy, and without storing sensitive business information on the blockchain itself. John Wolpert, Group Executive for Enterprise Mainnet, ConsenSys, adds, “The EY vision to leverage the public Ethereum network without putting any enterprise data at risk aligned strongly with our view of the blockchain as an enterprise integration network. By working with EY, we can help build a powerful business ecosystem on open standards that is designed for privacy and security from the ground up.”
The Baseline protocol supports smart contracts and accepted industry-wide tokenization standards – and in so doing, enables an ecosystem of interoperable business services. Key process outputs like purchase orders and receivables are tokenized and integrated into the decentralized finance (DeFi) ecosystem. Yorke Rhodes, Principal Program Manager, Blockchain at Microsoft, explains, “With the Baseline protocol, we are developing enterprise processes that are ecosystem ready because they are being built in a truly blockchain-native manner. When delivered on the public Ethereum network, this will drive adoption and the whole ecosystem.”
The initial release of the Baseline protocol includes the process design and key components to enable volume purchase agreements and lays the groundwork for blockchain applications that link supply chain traceability with commerce and financial services.