EY: Identity authentication management is one of the key areas of blockchain application

Ernst & Young (EY), one of the world's four largest auditing giants, recently revealed that it is developing a new project for an Australian client - a blockchain-based identity authentication management platform.

EY said the platform is primarily used for customer identity management and verification, while also addressing internal data management and privacy challenges.

The platform has been integrated into the ethereum protocol. EY’s Australian client is the startup BlochExchange, which has created a blockchain-based mortgage platform.

Michael Maloney, manager of Ernst & Young's financial services practice, said in an interview that the new platform is the most viable product launched by its internal research and development team.

It is perhaps the most robust and effective research we have on Ethereum to date, and highlights a number of the network’s strengths.

In addition, the project also demonstrates EY’s confidence in blockchain’s ability to reshape the financial services sector.

Building credibility

The platform is able to create customer identity information through the traditional KYC (Know Your Customer) process and distribute this information to other trusted members in a blockchain environment.

Maloney said development of the platform began in November last year and took six weeks.

BlochExchange CEO Andrew Coppin said the identity management technology's capabilities in third-party data storage and verification have far exceeded their expectations.

He said:

The advantage we have now is that we have a robust system that has credibility in the market.

With this platform, we will also be able to collaborate with other promising companies and offer them the advantages of this system.

Development potential

In general, EY believes that blockchain is a foundational technology that requires a specific platform to realize its benefits. Angus Champion de Crespigny, EY’s blockchain and distributed architecture strategy leader, said:

Identity information is very important to us and we believe it is one of the key areas of blockchain application.

However, he is unable to give a specific deployment time for the platform for the time being, saying that discussions in this regard are still under ongoing negotiation.

EY is confident in the technology and believes that from a technical perspective, the development of this blockchain platform will not encounter major obstacles.

De Crespigny said:

Currently, the project is in the demonstration stage. The platform is already usable and has been verified and tested.

In addition, he also pointed out that KYC, customer management and regulatory issues are the core areas where the platform is "best at".

From a long-term development perspective, EY also plans to develop a "guarantee product" based on this platform that can reduce the risks of adopting blockchain technology.

De Crespigny explained:

We always have to constantly remind people that this new technology and blockchain is secure and can be monitored.

EY partner James Roberts added that they are in discussions with several major banks in Australia about deploying the platform, but the discussions are still at an early stage.

We are in touch with three of the major Australian banks.