Consensys introduced a new system that lets banks and financial institutions coordinate transactions across different networks without moving assets off the blockchains where they reside.
According to The Block, the product, called Sovereign Network Interoperability, was announced at the Devcon event in Mumbai. The system is aimed at institutions seeking to coordinate collateral, payments and securities transactions across independently operated blockchains.
Assets stay put as transactions are coordinated
Institutions first define the transaction terms and the counterparties they approve. The software selects a path that meets those terms, coordinates transactions across the relevant networks and tracks the outcome.
According to Consensys, assets remain on their own networks; state information across different networks and the execution of transactions are cryptographically verified. The company says the architecture enables transactions across networks without using bridges and is based on nearly a decade of research into zero-knowledge proofs.
The product was designed for a range of use cases, from using collateral and settling securities transactions to large-value institutional payments and payments between different currencies. Fund and asset servicing are also among the use cases.
Available on Ethereum-compatible networks, with Canton connection planned
Connectivity for Ethereum Virtual Machine (EVM)-based networks is now available. A connection to the Canton network is planned. The system will also support the Ethereum Economic Zone standard, the Inter-Blockchain Communication protocol and other cross-network communication technologies.
Consensys President David Cunningham said the company aims to make it easier to connect to different networks and to make transaction outcomes verifiable.
The announcement follows the company’s October 8 partnership with ClearToken to develop infrastructure for round-the-clock settlement of tokenized securities and cash.
Not investment advice.