Bitcoin and Ethereum prices have been staying in the low-mid range for a long time, unable to fire up, but this may change soon. Heavyweight tech and finance companies have joined forces in an effort to develop a global blockchain-based "network of networks" targeting critical shortcomings hindering crypto adoption. A report from Forbes suggests, the initiative may contribute to mainstreaming crypto and kick-starting the next Bitcoin price bull run.
Announced earlier in May, the Canton Network project brings together a group of global players, including BNP Paribas, Capgemini, Deloitte, Goldman Sachs, and Microsoft. The goal is to enable the interoperation of previously siloed financial systems with proper controls required in regulated industries.
"The Canton Network enables financial institutions to experience a safer and reconciliation-free environment where assets, data, and cash can synchronize freely across applications," reads the press release. For example, the technology will be capable of integrating a digital bond and a digital payment across two separate applications into a single atomic transaction for simultaneous and risk-free exchange.
The Canton Network allegedly overcomes three essential flaws of today's smart contract networks:
- the lack of privacy and control over data,
- trade-offs between control and interoperability,
- the inability to scale.
The "network of networks" balances the decentralization with privacy and control necessary to operate within a safe regulatory environment.
The technology is, obviously, underpinned by artificial intelligence. "We are excited to be a supporting partner of the Canton Network. We look forward to helping the financial community build and scale cloud-enabled Web3 applications on Azure while harnessing the power of AI to improve the user experience and drive developer adoption," said Rashmi Misra, GM of AI & Emerging Technologies, Business Development at Microsoft, in a commentary for the release.
It's not the only recent initiative likely to propel the web3/crypto industry. Earlier this year, Fidelity launched a crypto platform allowing its 37 million users to buy and sell crypto commission-free. Another finance giant, BlackRock, also announced its engagement in the crypto industry. "At BlackRock we continue to explore the digital assets ecosystem, especially areas most relevant to our clients such as permissioned blockchains and tokenization of stocks and bonds," Larry Fink, the company's CEO, wrote in the Annual Chairman's Letter to Investors.
