|

Consulting firm EY to work with Polygon on Ethereum scaling

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

Big-four consulting firm Ernst & Young (EY) will use Polygon’s protocol and framework to deploy its own EY blockchain solutions onto Ethereum.

According to a press release on Monday, EY will adopt Polygon’s commit chain scaling solutions to allow EY to boost transaction volumes, providing “predictable costs” and settlement for enterprise customers.

EY will also have an option to move transactions onto the public Ethereum mainnet, the company said.

Polygon’s commit chain – another term for a blockchain scaling solution – has been retrofitted by EY to create permissioned, private industry chains that take advantage of new models for handling transaction verification.

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

Ethereum 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 this but has so far shown mixed results in reducing costs.

Scaling solutions have been praised for their ability to lighten the network load from major names, including bitcoin, due to their ability to process transactions on a sidechain. Arbitrum, an optimistic rollup solution, for example, has seen significant growth in the past week rising from $24.5 million total value locked at the start of this month to around $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 enterprises 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 roadmap 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.”

Author

CoinDesk Analysis Team

CoinDesk is the media platform for the next generation of investors exploring how cryptocurrencies and digital assets are contributing to the evolution of the global financial system.

More from CoinDesk Analysis Team
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs. 

Luna Classic soars 20% as Do Kwon's sentence hearing looms

Luna Classic surges 20% on Friday, extending its recovery for the fourth consecutive day. Roughly 959 million tokens have been burned in December so far, fueling LUNC's recovery.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000. 

Ethereum strengthens against BTC post-Fusaka, targeting $3,200 breakout

Ethereum trades above $3,100 on Friday, with bulls aiming for a breakout above a two-month-old resistance trendline. Ethereum gains strength against Bitcoin as demand for the major altcoin increases after the Fusaka upgrade.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin (BTC) is steadying above $91,000 at the time of writing on Friday. Resistance at $94,150 capped recovery on Wednesday, but in the meantime, bulls have contained downside risks above $90,000.