The well-known accounting firm Ernst & Young launched a small technological advance built on the Ethereum Blockchain called NightFall, designed to carry out private transactions of ETH, and although nobody had much information about the project, there are new details that we cannot miss.
In an interview with crypto news international media, Paul Brody, Global E&Y Manager in Blockchain technology said NightFall will be the first step in a process to get companies to create contracts, settle bills and make payments between them using the Ethereum blockchain network.
“At the same time that this occurs, the information of any transaction would be kept private for anyone who is not one of the parties, since most of the data would be kept out of the public ETH Blockchain.
We know that it is a road map more than ambitious, but if successful we will lead to a transformation of another world for companies around the world that are and will be our customers. ”
For EY, it is such a transformative idea that it is believed that it will generate massive changes in the way companies operate in the next 20 years.
“When the Enterprise Resource Planning (ERP) software came out, it reinvented the way companies operate. We believe that Blockchain technology will do for networks and giants what ERP did for individual companies. ”
The formal debut of NightFall came with its first prototype, presented in June 2018, long before we knew its real name. At that time, EY had partnered with Microsoft, as the super giant of computer software planned to launch its own platform prototype that would help pay all its contractors and for that it needed the help of Ernst And Young.
Perhaps that partnership with Microsoft made EY reconsider what the future of their business was going to be, and the soon launch of NightFall tells EY that it is on the right track, that there is a gap in the market and that a service based on Blockchain can be more efficient and save costs to large and small companies.
The prototype currently uses a private Blockchain, better known as Ledger. It still requires that third parties outside the blockchain network they will use (today the private one, then Ethereum’s) keep the project running, and that NightFall has not been launched after 6 months makes us think that it still has problems in the functioning.
Blockchain technology allows two parties to interact without the need for a trusted third party. Now we see why a Blockchain like Ethereum’s, which has tools called Smart Contracts, was the ideal option for EY.
The problem is that the current version of Ethereum does not support private transactions, whether any type of operation done on it could be seen by everyone around the globe, just like any Smart Contract.
“So, if companies started using Ethereum today, they could expose their finances, so we have not advanced with the issue, at least not publicly.”
That is why the Ernst & Young developer team has moved heaven and earth by hiring multiple engineers and developers from our ecosystem to help build a kind of privacy feature outside the Ethereum Blockchain where transaction data is hidden from the public view, through the use of complex cryptographic technology, but still compatible with the Blockchain Core.
Ernst & Young wants to do the same with Smart Contracts. The second stage of the EY plan is to create the notion of “Private Smart Contracts” where the details of these digital contracts will not be uploaded to the ETH Blockchain, an ambitious concept that will require more technological innovation.