Launch of Financial Blockchain back by big firms like Microsoft
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The privacy-enabled Canton Network opens up new efficiencies and innovation by making previously isolated financial systems interconnected and interconnected in previously impractical ways.
The cantonal network will be tailored
A number of organizations have joined a new blockchain system that connects a number of institutional applications, including Goldman Sachs Group Inc, 3Homes, ASX, BN P Paribas, Microsoft Corp, Deloitte and Cboe Global Markets Inc. This move could advance the use of distributed ledger technology more widespread in the financial markets.
Canton Network will provide a decentralized infrastructure that connects many independent apps created using the Daml smart contract language developed by Digital Asset. It establishes a “network of networks” that enables previously isolated financial market systems to work together while maintaining the necessary governance, privacy, permissions and controls necessary for highly regulated sectors.
Assets, data and currency can be easily synchronized across apps in a more secure and reconciliation-free environment thanks to the Canton Network for financial institutions.
Organizational adoption of Web3 technology remained high last year despite a drop in the value of digital assets. The news shows that, despite regulatory uncertainty in the US and damage from a number of crypto-native failures, some businesses continue to be optimistic about the promise of blockchain technology.
Advantages of public blockchain
- There are three key shortcomings that prevent blockchain networks from being meaningfully used by businesses and financial institutions.
- Chains have privacy flaws that make it impossible for many regulated actors on the same network to exploit the technology. At every level of the network, no other blockchain can currently provide data security or control.
- Other chains rely on a common pool of validators to achieve interoperability, forcing operators to give up complete control over applications.
Achieving the scale and performance required by financial institutions remains difficult due to apps competing for network resources on a global scale and the built-in capacity limitations that result from operating public blockchains.
By skillfully blending network decentralization with the privacy and control required to operate within a secure and trusted framework, the Canton Network eliminates these barriers. Participants can only protect permissions, exposure and network-wide interactions with the Canton Network to comply with security, regulatory and legal obligations.
The number of connections on the Canton Network will increase dramatically as more Daml-built apps are deployed this year and in the years to come. For example, the monthly notional trade for one application surpasses the volumes of the busiest crypto tokens.
When does the operation start?
In July, Canton Network participants will begin assessing interoperability capabilities across a variety of applications and use cases.
According to Jens Hachmeister, director of issuer services and emerging digital markets at Deutsche Börse Group, systems like Canton “are a key building block for future digital and distributed financial market infrastructures.”
Although the effort has the support of over 30 companies, there have been a number of banking blockchain consortia with well-known players over the years. The degree of achievement has fluctuated.
Finance-related large-scale blockchain initiatives are challenging because new technology must be implemented across different businesses operating in regulated marketplaces. The entanglement has sometimes led to initiatives being postponed, stopped or abandoned. Australia’s largest exchange operator, the ASX, revealed in November that it was reconsidering the possibility of replacing its settlement and clearing system with a blockchain-based system that it intended to develop in partnership with Digital Asset.
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