Canton Network, which will begin testing in July, is a ‘network of networks’ for blockchain interoperability in financial markets.
In what is set to be a big boost for blockchain adoption globally, a group of multinational firms including Microsoft, Deloitte and Goldman Sachs has announced plans to launch a worldwide blockchain network for financial markets to adopt the privacy-focused technology more easily.
Known as Canton Network, the project will provide a decentralised infrastructure to connect applications built with Daml, or digital asset modelling language, which is a blockchain-agnostic language for smart contracts.
Canton will create a ‘network of networks’ of sorts, allowing “previously siloed” systems in financial markets to interoperate with the appropriate governance, privacy, permissions and controls required for highly regulated industries.
Participants in the Canton Network, which includes some of the world’s most well-known names in technology and finance, such as BNP Paribas, S&P Global and Cboe, say the system offers improved privacy and controls over the ones currently in use.
“The Canton Network is a powerful answer to industry calls for a solution that harnesses the potential of blockchain while preserving fundamental privacy requirements for institutional finance,” said Chris Zuehlke, partner at DRW and global head of Cumberland, both participants.
“This unique approach, coupled with the ability to execute an atomic transaction across multiple smart contracts, is the building block needed to bring these workflows on chain.”
The idea behind the network is to essentially get all the benefits of public blockchains without having to deal with the flaws, such as the lack of privacy and control over data, trade-offs between control and interoperability, and the inability to scale.
Participants of the Canton Network will begin testing it across a range of applications and use cases in July.
Yuval Rooz, co-founder and CEO of Digital Asset, called the network “a significant step forward” for the blockchain space.
“For the first time, financial institutions can realise the full benefits of a global blockchain network while operating within the regulatory guardrails that ensure a safe, sound and fair financial system.”
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