This week, one of the Big Four firms, Ernst & Young (EY) had announced a new version of the Blockchain Analyzer, a blockchain analytics tool, at the annual EY Global Blockchain Summit.
The first EY Blockchain Analyzer was designed to facilitate EY audit teams in gathering entire transaction data from multiple blockchain ledgers, while the next generation is available for EY teams and non-audit clients as a business application, which is accessible anytime.
With the second generation, Paul Brody, EY Global Innovation Leader for blockchain, revealed the company plan for building a platform solution that can be used for multiple purposes such as audit, tax, and transaction monitoring. Besides that, the new version can automatically calculate capital gains and losses on crypto-assets transactions in compliance with US tax law from the Andy Crypto-Asset Accounting and Tax (AndyCAAT) tool.
Besides that, Ernst & Young also unveiled the zero-knowledge proof protocol, which is focused on secure, private transactions over public blockchains as “making public blockchains secure and scalable is a priority for EY. The fastest way to spread this privacy-enhancing technology was to make it public. The main component allows for secure, private transfers and payments on the public Ethereumnetwork. This supports fungible token payments compatible with the ERC-20 standard and unique asset transfers compatible with the ERC-721 standard. The ERC standards are publicly accepted open standards for tokens on the Ethereum blockchain” – said by Paul Brody, EY Global Innovation Leader.
Paul also noted about 90% reduction processing costs since the last prototype launching in 2018. The new software code is under the final reviews now and will be launched in next month.
In March, EY’s Crypto-Asset Accounting and Tax (CAAT) was launched for accounting and preparing taxes on cryptocurrency holdings, which can get and consolidate data about the crypto transactions and also automatically run reports, including cryptocurrency-related U.S. Internal Revenue Service tax returns.