Microsoft and law firm EY are claiming the production of one of the most significant financial systems based on the blockchain. The manufacturer of the Xbox will offer its partners complete monitoring of their financial operations and automatic payments.
EY and Microsoft are not new to blockchain technology. The publisher already has a blockchain solution for the management of rights and royalties for Xbox games.
This service is being expanded with new features. The ambition of two players is to provide ecosystem partners with a financial monitoring system. This covers the creation of the contract up to payment and accounting reconciliation.
This blockchain solution is designed to ensure transparency, fast payment processing and royalty calculation. Other benefits include a better understanding of contracts, statements, invoices and accounting records.
The platform is intended for Microsoft’s partners in the field of video games on Xbox. The Redmond-based firm also cites its network of artists, musicians, writers, and other content creators as future users.
However, there is no question of forcing these companies to revise their accounting processes in depth in order to coexist with the new blockchain system. EY says that integration with ERPs is “completely transparent”.
Indeed, the system allows the generation of accounting entries from the blockchain platform in existing ERP applications. This improves efficiency and accounting capabilities. The audit firm claims a 99% reduction in processing time.
As far as the calculation of royalties is concerned, it is carried out in almost real time thanks to digital contracts with Xbox game publishers. The blockchain application can process up to 2 million transactions per day.
“During this commissioning, we were able to generate the first round of partner payments using the blockchain and smart contract technology,” said Luke Fewel, Microsoft’s director of financial operations.