EY announced in early March the launch of its Baseline protocol project. The new initiative is a an open-sourced paackage of blockchain tools that will allow enterprises to build and deploy blockchain-based products securely and privately on the public Ethereum blockchain. The project is part of a joint effort between EY, ConsenSys and Microsoft.
The Baseline protocol leverages several technologies, including zero knowledge proofs, off-chain storage and distributed identity management so that enterprises can define and synchronize processes and agreements using common standards, with full privacy, and without storing sensitive business information on the blockchain itself.
“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,” said Paul Brody, EY Global Blockchain Leader.
The Baseline protocol will also support smart contracts and industry-wide tokenization standards. In doing so, they will enable an ecosystem of interoperable business services. Key process outputs like purchase orders and receivables are tokenized and integrated into the decentralized finance (DeFi) 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.
“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,” said Yorke Rhodes, Principal Program Manager of Blockchain at Microsoft.
By supporting smart contracts and tokenization, as well as integrating into a DeFi ecosystem, enterprises will have access to an extensive toolbox of resources with which to research and develop blockchain solutions. The protocol enables confidential and complex collaboration between companies and enterprises without leaving sensitive data on-chain.