> For the complete documentation index, see [llms.txt](https://docs.fractit.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fractit.com/canton-network/why-canton.md).

# Why Canton

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### Three properties that matter

#### Privacy by default

On Canton, transaction details are visible only to the authorised parties of each contract — not broadcast to all network participants. For a compliant financial product with KYC-gated access, this is non-negotiable. Subscription amounts, portfolio positions, and trading activity are not publicly visible on-chain.

#### Sub-second finality

Canton provides deterministic transaction settlement with sub-second finality. There are no probabilistic confirmation delays, no reorg risks, and no uncertainty about whether a transaction has settled. When a DFMREIT subscription confirms, it is final.

#### DAML smart contract execution

DAML is a purpose-built smart contract language designed for financial agreements. Unlike general-purpose bytecode languages, DAML has native support for obligations, rights, and complex multi-party workflows. It is the right tool for encoding the precise lifecycle of a financial product.

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### Why not EVM?

EVM chains broadcast all transaction data publicly by default, have probabilistic finality, and use general-purpose smart contract languages not optimised for financial contract semantics. None of these properties are compatible with a compliant, institutional-grade index product.

Canton was built specifically for regulated financial markets. Fractit is built on the right foundation for what it is.

***

### Canton in the Fractit context

| Property              | Benefit for Fractit                                                             |
| --------------------- | ------------------------------------------------------------------------------- |
| Privacy by default    | User positions and transaction amounts are not publicly visible                 |
| Sub-second finality   | Subscriptions, trades, and redemptions settle immediately and deterministically |
| DAML contracts        | Every lifecycle event is governed by a formally specified financial contract    |
| CC as native asset    | Fractit products participate directly in Canton-native market activity          |
| Whitelist enforcement | Transfer restrictions are enforced at the contract layer — not just the UI      |