EY announced its partnership with Layer 2 Ethereum scaling solution Polygon to allow its enterprise clients to conduct smoother transactions on the Ethereum mainnet.
EY Going Polygon Way To Be Enterprise-Friendly
On Monday, one of the Big Four consulting multinationals, Ernst & Young, announced that its flagship blockchain services, EY OpsChain and EY Blockchain Analyzer, will be integrated with Polygonm allowing transactions to be committed to Ethereum via the sidechain. This integration will enable enterprise clients to increase transaction throughput with reasonable fees and fixed transaction times.
Additionally, the Polygon partnership is also opening up the opportunity for EY to offer permissioned, private optimistic rollup chains to handle transaction verification and increase security and efficiency. Furthermore, the rollup chains would also help enterprises be closely aligned with the public Ethereum mainnet to ensure quicker and lower risk transitions to public networks in the future. Plus, it would also provide businesses with the security of a closed system.
According to EY Global Blockchain Leader Paul Brody,
“Working with Polygon provides EY teams with a powerful set of tools to scale transactions for clients and offers a faster roadmap to integration on the public Ethereum mainnet.”
Ethereum’s Congestion Issue
Ethereum’s increasing transaction costs and times have been a growing problem, with many users claiming that the main Ethereum blockchain has become too slow to use. In addition, congestion on the network drives up transaction costs. The London hard fork is still facing difficulties in making transaction fees more predictable. Currently, the Ethereum blockchain handles just 30 transactions per second. The transaction speed is expected to scale up to around 100,000 tps with the upcoming ETH 2.0 upgrade. But that is not going to be deployed entirely before 2022.
Layer 2 Scaling Solutions
The congestion issue can be addressed using Ethereum Layer 2 scaling solutions like Polygon. The protocol is working with the EY organization to prioritize enterprise-friendly features and privacy technologies with sophisticated use cases. The joint endeavor will also devise solutions to support regulatory compliance.
Co-founder of Polygon, Sandeep Nailwal, says,
"The EY commitment to the public Ethereum ecosystem and to open standards was a big driver in evolving shared approaches. No other organization has made the same scale of commitment to the ecosystem and to open systems, or brings the depth of technology that the EY organization has in this space."
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.