Microsoft is advocating the development of a financial blockchain – Cryptopolitan
Financial industry giant Microsoft is leading firms such as Deloitte and S&P Global to support the launch of the Canton Network, a blockchain platform that aims to revolutionize financial markets through Web3 technology. The network’s goal is to provide businesses with a decentralized infrastructure that increases transaction efficiency by connecting financial systems and enabling synchronized operations, according to a press release.
The company wants a synchronized operation
By leveraging blockchain technology, the Canton Network allows assets, data and cash to seamlessly sync across various applications. This provides an opportunity for financial institutions to introduce innovative products to their customers while improving overall efficiency and risk management.
Despite falling crypto prices, institutional adoption of Web3 technology remained strong last year. The Canton Network announcement indicates that many firms still recognize the potential of blockchain technology, even amid regulatory uncertainty and the fallout from certain cryptocurrency-related incidents.
The network is built on the Daml smart contract language, developed by Digital Asset, a software company. Digital Asset’s co-founder and CEO, Yuval Rooz, expressed the significance of this advancement by saying that financial institutions can now take full advantage of a global blockchain network while operating within the necessary regulatory frameworks, promoting a secure and fair financial system.
Canton Network, which currently counts 30 participants, including major players such as Paxos, Goldman Sachs, BNP Paribas, Cboe Global Markets and Microsoft, expects exponential growth in connections throughout the year as applications are developed.
Microsoft is leading the embrace of Web3 potential
The statement released by the network highlights the challenges that institutions face when adopting Web3 technology and emphasizes how the Canton Network aims to overcome these obstacles. Issues such as lack of privacy and control of data, limitations in interoperability between existing blockchain networks, and scalability issues are all addressed by the network’s design.
Beginning in July, Microsoft and other participants will begin testing the network’s interoperability across a wide range of use cases and applications. The potential benefits of asset tokenization, which represents real-world assets with digital tokens, was recognized by BlackRock CEO Larry Fink, who described it as a turning point for traditional finance.
Tokenization allows for instant settlement and reduced fees. Several Canton Network participants share this view, with Cathy Clay of Cboe Global Markets emphasizing the potential to create new market infrastructure and increase efficiency in global commodity trading.
Overall, the launch of the Canton Network demonstrates the commitment of major institutions such as Microsoft to embrace blockchain technology and harness the benefits of Web3 innovation. By addressing the concerns of privacy, interoperability and scalability, the network has the potential to transform the financial services industry and open up new avenues for efficiency and growth.