By The DCo Podcast
Date: [Insert Date Here]
Quick Insight: This summary is for builders and investors who realize that institutional adoption requires more than just faster transactions. It explains why privacy is the missing link for moving trillions in capital markets onto the chain.
Public blockchains are glass houses and banks do not want to live in them. While retail users value transparency, institutions view it as a fatal flaw for operations like payroll and capital markets. This episode features the Canton Network team explaining why privacy is the prerequisite for the next trillion dollars of on-chain value.
The Transparency Bug "Transparency has always been the bug. I mean, it was even obvious to Satoshi."
Satoshi recognized: Satoshi recognized that Bitcoin needed privacy to scale. Institutional participation remains a theoretical exercise without it.
Public ledgers: Public ledgers are like glass offices where everyone sees your paycheck. This visibility prevents companies from using standard chains for sensitive operations.
Large players avoid: Large players avoid public chains because data leakage is a liability. Privacy must be baked into the protocol layer to attract serious capital.
The Stablecoin Myth "The institutions are not really using stable coins today. I think there's this misconception that stable coins have found radical product market fit."
Retail users love: Retail users love stablecoins but banks are still watching from the sidelines. Lack of privacy makes current stablecoin implementations inappropriate for institutional use.
Moving money at scale: Moving money at scale requires a balance between auditability and secrecy. Current public options fail to provide the necessary walls for corporate treasury.
Scaling with Canton "We really are the only ecosystem that can support privacy at scale in a compliant manner."
Canton enables: Canton enables private transactions that still meet regulatory standards. This allows for the movement of capital without exposing proprietary strategies.
Payroll and remittances: Payroll and remittances become viable when the ledger is private. Canton provides the infrastructure for high-volume and sensitive financial activities.
Podcast Link: Click here to listen
Institutional adoption is just getting started. Transparency has always been the bug. It was even obvious to Satoshi. If you go into the Bitcoin talk, he was very open and very clear about Bitcoin needing privacy to be really successful. We knew for institutional adoption or adoption at scale that this was really a foundational issue.
How are institutions using stable coins today? The institutions are not really using stable coins today. I think there's this misconception that stable coins have found radical product market fit. It's just deeply inappropriate to use a public blockchain for these things.
Imagine doing payroll on most public blockchains. You are effectively leaking the salaries of all your employees and the bonuses of all your employees to each other. You want the benefit of a blockchain, but you don't benefit from the whole world seeing all those activities. In many ways, it could be counterproductive.
We really are the only ecosystem that can support privacy at scale in a compliant manner. Remittances, payments, payrolls, all that stuff is very easily accomplished with privacy in Canton.
So if that is important to you because you're trying to move stable coins at scale, you're trying to do capital markets at scale, you're trying to do anything at a scale, I think Canton is really a no-brainer.
