Canton Network Under Fire for Banking-Like Features and Misleading Metrics

A recent analysis of the Canton Network has highlighted concerns about its compatibility with blockchain principles. The researcher behind the critique argues that Canton operates more like a traditional banking system due to features such as invitation-only validator processes and tiered fees.

The network's use of built-in censorship is also seen as a major issue, as it goes against the open-access promise of crypto. In comparison, truly decentralized systems rely on economic incentives rather than approvals from a central group.

Additionally, the researcher points out that Canton's inflation rate is 21.8%, with validators receiving token rewards without staking anything. A select group of applications also receives rewards chosen by this central authority, mirroring a Ponzi-like scheme where the token serves no functional purpose in a centralized design.