Canto blockchain migrates to Ethereum’s Layer 2, leveraging Polygon’s technology to revolutionize ‘neofinance’

In a significant development for the blockchain community, Canto, a Layer 1 blockchain initially launched in 2022, announced its migration to Ethereum’s Layer 2 (L2). The migration is facilitated by Polygon’s Chain Development Kit (CDK), a technology that enables the creation of zero-knowledge (ZK) chains. This move aims to focus on real-world assets and is seen as a step towards a “neofinance” future.

The role of Polygon CDK and zero-knowledge proofs

Polygon’s CDK offers an open-source, permissionless framework that allows for the design of ZK chains, which can be customized to reflect a community’s ethos. These chains maintain their independence while being part of a unified ecosystem connected to Ethereum. For Canto, this means that if an agreement is reached within its community framework, known as the Canto Commons, core developers will construct a ZK L2 that embodies the community’s principles of permissionless sovereignty and public liquidity.

The migration will enable Canto to tap into a unified Polygon ecosystem that provides seamless access to Ethereum. Security for users will be ensured through a best-in-class ZK prover, inheriting cryptographic security from Ethereum. This eliminates the need for socio-economic incentives of fraud proofs, thereby enhancing trust and decentralization.

Towards a neofinance future

The term “neofinance” refers to a new era of financial efficiencies achieved by deploying off-chain assets on blockchain protocols. Polygon’s modular design allows these efficiencies to be unlocked at scale, without compromising security or liquidity. For neofinance to be realized at scale, deep liquidity is essential, and this is where the migration to an Ethereum ZK-powered L2 comes into play. Canto will utilize a Plonky2 ZK proving implementation and will maintain its proof-of-stake validator set for decentralized sequencing. This ensures that there will be no changes for Canto’s existing validators or stakers.

Canto is not alone in this migration trend. Earlier this year, Celo and Fantom also announced plans to become Ethereum Layer 2s, signaling a broader industry move toward Ethereum’s ecosystem. Canto now joins the ranks of Astar, Immutable, IDEX, and Palm Network as ZK-based Layer 2s built by the Polygon network. 

Canto’s migration to Ethereum’s Layer 2, facilitated by Polygon’s CDK, marks a significant milestone in the blockchain community’s ongoing efforts to integrate real-world assets and move towards a neofinance future. The migration not only enhances security and liquidity but also sets the stage for greater decentralization and trustless guarantees.