Canton Network Gains Traction Among Institutions Amid DeFi Security Concerns

The recent Kelp DAO hack has sparked concerns among Wall Street firms about their fiduciary responsibility to prevent state-sponsored bad actors from interacting with their systems.

Digital Asset's Yuval Rooz emphasizes the importance of security in decentralized finance, citing the example of North Korean-linked hacking groups that have stolen over $6 billion in crypto since 2017.

The Canton network, developed by Digital Asset, allows participants to implement guardrails for subnets and digital assets, which may hinder the ability of bad actors to infiltrate projects.

Rooz acknowledges that some critics argue that this design is not a 'true' blockchain due to limitations on user control. However, he notes that safety parameters will become essential for applications targeting consumers.