Banks must upgrade their blockchain infrastructure

Banks risk falling behind if they cling to private blockchains. Upgrading to public, permissioned layer-2 infrastructure with ZK-proofs is essential for modern finance.

Opinion by: Igor Mandrigin, co-founder and chief technology and product officer of Gateway.fm

For years, private distributed ledger systems, like Hyperledger, have provided banks with a secure means to explore blockchain technology without venturing into public networks. These frameworks delivered privacy, permissioned access and a sense of institutional control — qualities that undoubtedly appealed to traditional finance players when the crypto market was still viewed as the Wild West.

The environment has changed fundamentally since then, as tokenized assets, stablecoin settlements and institutional crypto exposure have quickly become the standard. The closed, permissioned models that once spoke to the risk-averse tendencies of banks now hold them back. At this critical geopolitical and macroeconomic juncture, financial institutions need to move beyond legacy frameworks and adopt public, permissioned layer 2 infrastructure built with zero-knowledge (ZK) proofs. 

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