The Core Insight
Traditional blockchains replicate all data to all nodes. This provides strong integrity guarantees but makes privacy impossible without additional layers. Canton inverts this model: data goes only where it needs to go. Parties see only what they’re entitled to see, yet the system maintains the same integrity guarantees as a fully replicated blockchain.How It Achieves This
Canton achieves this through three key innovations:1. Sub-Transaction Privacy
Transactions are decomposed into views. Each party receives only the views they’re entitled to see based on their role (signatory, observer, controller). If Alice pays Bob, and Bob pays Charlie in a single atomic transaction:- Alice sees her payment to Bob
- Bob sees both payments (he’s involved in both)
- Charlie sees only his receipt from Bob
- Nobody else sees anything
2. Synchronizers Only Coordinate, Don’t Store Transaction State
The Global Synchronizer orders transactions and facilitates consensus but never sees transaction content. It handles encrypted messages and confirmation results only. This separation means:- No central point that can read all data
- Coordination without visibility
- Validators store data for their hosted parties
3. Smart Contracts Define Privacy
Privacy isn’t a bolt-on feature. Daml smart contracts explicitly declare:- Signatories: Who must authorize and always see the contract
- Observers: Who can see but not act
- Controllers: Who can execute specific actions
The Network
Canton Network consists of:| Component | Role |
|---|---|
| Global Synchronizer | Public coordination layer operated by Super Validators |
| Validators | Nodes that host parties and store their contract data |
| Canton Coin (CC) | Native token for transaction fees |
| Applications | What you build on top |
Why This Matters
Canton enables use cases that are impossible on traditional blockchains:| Use Case | Why Canton Works |
|---|---|
| Regulated finance | Data stays with entitled parties; compliance becomes possible |
| Multi-party workflows | Shared truth without shared visibility |
| Confidential agreements | Terms visible only to signatories |
| Position privacy | Trading strategies protected |
What’s Different
If you’re coming from other blockchains:| Traditional Blockchain | Canton |
|---|---|
| Everyone sees everything | Parties see only their views |
| Global state replication | Distributed state per party |
| Privacy = additional layer | Privacy = core protocol |
| Gas fees | Traffic fees |
| EOA/Address | Party |
| Mutable contracts | Immutable; changes create new contracts |