Introduction to Canton Network
The blockchain ecosystem has witnessed the emergence of numerous highly successful smart contract protocols, making it increasingly competitive for newcomers to enter the scene. One such newcomer is the Canton Network, a “Next Generation Layer One” protocol vying for users and capital from established companies like Ethereum and Solana. Canton Network’s rise, although seemingly quick, is the result of a decade-long journey of learning from others’ mistakes and refining its approach.
Yuval Rooz, co-founder of Digital Asset, the company behind Canton Network, shared the protocol’s backstory in an exclusive interview with Cointelegraph’s daily show Chain Reaction. Rooz emphasized the importance of patience and careful planning, stating that the company refused to conduct an initial coin offering (ICO) and instead focused on developing a robust tokenomics framework.
Development and Funding
The Canton Network is designed for use by financial institutions, enabling secure, interoperable, and privacy-preserving transactions. Digital Asset describes the protocol’s architecture as a “network of networks” aimed at tokenizing, trading, and settling real-world assets. In 2025, the company closed a $135 million funding round to further develop the Canton ecosystem and advance the protocol’s RWA tokenization.
Additionally, biotech firm Tharimmune raised $540 million in private funding to build a Canton Coin (CC) digital asset treasury, with plans to use the proceeds to acquire and stake CC tokens as the network’s super validator. This significant investment underscores the growing interest in Canton Network and its potential for widespread adoption.
Privacy and Security
Privacy is a crucial aspect of the Canton Network, with the protocol’s architecture designed to provide secure and private transactions. Rooz highlighted the importance of privacy in the cryptocurrency space, noting that many protocols have underestimated the need for robust privacy measures. In contrast, Canton Network’s privacy model is based on the “need-to-know” principle, allowing for the sharing of information on a need-to-know basis.
This approach differs from other protocols, such as Zcash, which focuses on anonymity through zero-knowledge cryptography. Rooz emphasized that Canton’s privacy model is more suited to the needs of financial institutions and regulators, who require the ability to monitor activities and comply with Know Your Customer and anti-money laundering standards.
Conclusion and Future Outlook
The Canton Network’s measured approach to development and launch has allowed it to learn from the experiences of other Layer 1 protocols and establish a strong foundation for future growth. With the support of major players in the global financial space, including BNP Paribas, Circle Ventures, and Goldman Sachs, Canton Network is well-positioned to make a significant impact in the blockchain ecosystem.
As the cryptocurrency space continues to evolve, the importance of privacy and security will only continue to grow. Canton Network’s focus on these aspects, combined with its robust tokenomics framework and strong backing, make it an exciting player to watch in the coming years. For more information on Canton Network and its tokenomics, visit https://cointelegraph.com/news/behind-canton-network-tokenomics?utm_source=rss_feed&utm_medium=rss_tag_blockchain&utm_campaign=rss_partner_inbound
