Hassan Maishera
TL;DR
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Consensys has introduced Sovereign Network Interoperability, a technology stack designed to connect independently operated blockchain networks used by financial institutions.
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The platform allows banks to settle transactions across different blockchains without transferring assets away from their original ledgers.
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Built around a Cross Ledger Interoperability Protocol, the system uses zero-knowledge cryptography to verify transactions across networks.
Consensys Introduces Bridgeless Blockchain Interoperability
Blockchain infrastructure company Consensys has unveiled a new interoperability platform designed to help banks and financial institutions move value across different blockchain networks without relying on traditional asset bridges.
The technology, called Sovereign Network Interoperability, was introduced on Monday at Devcon in Mumbai, as financial institutions increasingly explore blockchain-based settlement systems.
According to a company announcement, the platform enables transactions between independently operated blockchain networks while allowing assets to remain on their original ledgers.
The system is intended to support several institutional financial activities, including securities settlement, collateral management, wholesale payments, cross-currency transactions, and asset servicing.
At the center of the platform is the Cross Ledger Interoperability Protocol, which draws on Consensys' research into zero-knowledge cryptography.
Zero-knowledge proofs allow certain information to be verified without exposing all the underlying data.
In this case, the technology is used to provide cryptographic verification of transaction states and execution across different blockchain networks.
The goal is to allow financial institutions to interact across separate ledgers without sacrificing control over their assets or the systems on which those assets are recorded.
Consensys has designed the platform to simplify the technical work involved in coordinating transactions between financial institutions.
Under the system, an institution begins by specifying the requirements of a transaction, including the counterparties it is authorized to deal with.
The software then identifies an eligible transaction route based on those requirements. Once a suitable route is selected, the platform coordinates execution across the participating blockchain networks and monitors the transaction until its outcome can be verified.
This process is intended to reduce the need for institutions to build and maintain separate integrations for every blockchain network they use.
It also provides a framework for tracking transaction outcomes and establishing accountability across different systems.
Consensys President David Cunningham said the company is combining its experience in blockchain protocols with transaction coordination and ongoing technical support.
According to Cunningham, the objective is to make connecting financial networks less complicated while ensuring that transaction results can be independently verified.
The platform is also designed to support existing interoperability technologies rather than requiring institutions to adopt an entirely new blockchain ecosystem.
These include the Ethereum Economic Zone standard and the Inter-Blockchain Communication (IBC) protocol, alongside other interoperability frameworks.
At launch, the platform supports Ethereum Virtual Machine-compatible networks. Consensys also plans to introduce connectivity with Canton, a blockchain network designed for institutional financial applications, although the company has not provided a specific timeline.
