Consulting Firm EY to Work With Polygon on Ethereum Scaling

The company said the move will enable a future transition to public networks that are less risky and more efficient.

AccessTimeIconSep 14, 2021 at 12:58 a.m. UTC
Updated May 11, 2023 at 5:54 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Big Four consulting firm Ernst & Young (EY) will use Polygon’s protocol and framework to deploy its own EY blockchain products on the Ethereum blockchain.

EY will adopt Polygon’s scaling products to allow it to boost transaction volumes and to provide “predictable costs” and settlement for business customers, according to a press release on Monday,

  • What's Stopping Congress From Passing Crypto Regulation?
    00:56
    What's Stopping Congress From Passing Crypto Regulation?
  • Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
    19:02
    Sen. Lummis Addresses Algorithmic Stablecoin Ban in New Bill
  • Why Bitcoin May Fall to $52K
    14:59
    Why Bitcoin May Fall to $52K
  • JPMorgan Expects Bitcoin to Drop After Halving; New Zealand Starts Digital Cash Consultation
    02:15
    JPMorgan Expects Bitcoin to Drop After Halving; New Zealand Starts Digital Cash Consultation
  • EY will also have an option to move transactions onto the public Ethereum network, the company said.

    Polygon’s “commit chain” – another term for a blockchain scaling product – has been retrofitted by EY to create permissioned, private industry chains that take advantage of new models used to verify transactions.

    “The EY commitment to the public Ethereum ecosystem and to open standards was a big driver in evolving shared approaches,” Polygon co-founder Sandeep Nailwal said.

    The Ethereum blockchain has long been plagued by congestions and high fees associated with transactions on its network. The London hard fork last month was an attempt to fix that but has shown mixed results in reducing costs so far.

    Scaling products have been praised for their ability to lighten the network load from major blockchains, including Bitcoin, because of their ability to process transactions on a sidechain. Arbitrum, for example, has seen significant growth in the past week rising from $24.5 million in “total value locked” at the start of this month to about $2.2 billion on Monday.

    EY said its move increases efficiency and reduces transaction costs by providing an optimistic rollup. The company also said its new “industry chains” would provide customers with the security of a closed system while retaining a close relationship with the public Ethereum mainnet.

    “Working with Polygon provides EY teams with a powerful set of tools to scale transactions for clients and offers a faster road map to integration on the public Ethereum mainnet,” said Paul Brody, EY’s global blockchain leader in the announcement. “We discovered our shared priorities around open system and networks and the Ethereum ecosystem would make collaboration in this area much easier.”


    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Sebastian Sinclair

    Sebastian Sinclair is a CoinDesk news reporter based in Australia.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about