{"id":"R8DjmPyaYQI","title":"Subtransaction Privacy in 7 Minutes","description":"Canton Technical Primer: \n   • Daml 2.0 Canton Technical Primer [2022]  \n\nLearn to code with Daml and demonstrate Subtransaction Privacy: \n   • Video  \n\n📋  To get started with Daml, visit https://bit.ly/trydaml\n📖  Check out our blog https://daml.com/blog/engineering/\n\n00:00 Intro: subtransaction privacy\n01:09 Insurance Claim Example\n4:05 Bank / Share Registry Example with Subtx Privacy\n5:26 Comparing with Ethereum\n5:44 Other DLT Solutions\n6:15 Summary","channel_name":"Daml","published_at":"2023-03-15T00:00:00.000Z","thumbnail_url":"https://i.ytimg.com/vi/R8DjmPyaYQI/hqdefault.jpg","transcript_text":"hi everyone my name is Max developer Advocate at digital asset we will be going over one of canton's most important features sub-transaction privacy this is built in natively to the protocol and no other distributed Ledger technology provider can do this at the moment if you don't know what Canton is yet I've linked some resources below so what is subtransaction privacy let's take a look at this example person a buys a widget from a shop the sub-transactions resulting from this are three workflows the shop transfers the widget to a the shop creates a receipt for a and the bank transfers money from a to the shop these are sub-transactions and all sub-transactions should happen atomically meaning they all happen at the same time and they either all happen or nothing happens the Privacy here means that only person a in the shop should know the details of the transaction the bank should know nothing because it doesn't concern them all the banks should be responsible for is to transfer the cash in order to fully appreciate and understand the value of sub-transaction privacy let's go through a few examples let's take a look at the following example of an insurance claim workflow this is an example of a delivery versus payment flow that involves multiple parties in today's architecture setup without the concept of sub-transactions or even distributed ledgers it resembles something like this on the bottom left we have a clinic at the top we have an insurance provider and in the bottom right we have a bank they all have their own databases since they are separate entities today when I finish a procedure at the clinic and pay my fee at the payment Gateway what happens is I'm giving the bank authority to transfer balance from my bank account to the clinics account upon confirmation from the bank the clinic then gives me a receipt and saves the transaction into their database and a record is created next I go to the insurance provider upload the receipt to their system and now we can see there are two instances of a record the insurance provider then checks with the clinic whether the receipt is valid this process is called reconciliation reconciliation is an expensive process because it's a time-consuming manual process that can be prone to errors reconciliation errors are costly and plague entire Financial systems this is why the reason why distributed ledgers were invented in the first place finally the insurance company informs the bank to transfer the balance to my bank account and now I'm fully reimbursed for the procedure I've just done it's also worth noting that this is a simplified example this assumes that the clinic and the user are with the same bank but in reality multiple Banks may be involved which introduces additional reconciliation requirements in today's model without the use of distributed Ledger Solutions privacy is taken care of you can see each entity has their own database workflows are also separate and sequential meaning they aren't Atomic each entity is coordinating with each other in some sort of manual sequential way there is the issue of reconciliation but also who manages the source of Truth is it the clinic is it the insurance company these are all issues that distributed ledgers try to address now what if all entities decide to use one database it seems like things would be more efficient right you don't need to upload a separate receipt to the insurance provider because they already have access to this record and can just tell the bank what to do but this violates data protection and privacy your patient records should not be disclosed to anyone and the clinic should not know how much money is sitting in your bank account either and that's why even though distributed ledgers can help solve the issue of reconciliation Enterprises have been slow to adopt due to data leakage or the lack of sub-transaction privacy here we have another delivery versus payment example but this time let's see how it should look when we have sub-transaction privacy let's consider a transaction where Alice buys some shares from Bob in the real world such a transaction would not be between two individuals and it would involve numerous intermediaries but for the sake of Simplicity let's assume that this is a transaction between two people and it only involves a bank that facilitates transfer of cash and a share registry that facilitates transfer of share ownership and no other intermediaries Alice transfers Bob a hundred dollars the registry then transfers the shares from Bob to Alice these two sub-transactions are happening at the same time they're Atomic in addition the registry shouldn't know how much money either of them have in the bank all the registry should know is that it should be transferring the ownership and all the banks should know is that it's transferring the balance there can't be any data leakage between the bank and the share industry the ability to maintain privacy of the data which spans across privacy sets is what we call sub-transaction privacy now that we've gone through two examples to see why sub transaction privacy is necessary let's understand how other distributed Ledger Solutions aren't able to provide the level of privacy that Canton can provide if we were to use ethereum you can see all nodes have access to the same Ledger ethereum tackles the issue with reconciliation very well because all nodes have a copy of the record however privacy is lost this is not a solution for organizations that need strong privacy agreements with other blockchain Solutions such as Corda or fabric their transactions don't preserve privacy either so looking on the right side everyone in the transaction can see all components of that transaction so even though the blockchain might be permissioned stakeholders in a contract can still see everything so if we look back to this DVP example on the left hand side the sub-transaction Privacy can be achieved with Canton while on the right hand side everyone has a view of the components of that transaction to summarize when data is often used in conjunction with workflows that span across users and applications the privacy of this information must not be leaked in these composed workflows the composed workflows and the privacy of the information is what we want to guarantee finally for additional resources you can visit the download Community to ask any questions that you might have or go to the docs and read and get started on vaml and Canton thank you","transcript_synced_at":"2026-10-26T04:08:06.672Z","segments":[{"start_seconds":1,"text":"hi everyone my name is Max developer Advocate at digital asset we will be going over one of canton's most important features sub-transaction","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=1s"},{"start_seconds":9,"text":"privacy this is built in natively to the protocol and no other distributed Ledger technology provider can do this at the moment","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=9s"},{"start_seconds":17,"text":"if you don't know what Canton is yet I've linked some resources below so what is subtransaction privacy let's","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=17s"},{"start_seconds":24,"text":"take a look at this example person a buys a widget from a shop the sub-transactions resulting from this are three workflows the shop transfers the","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=24s"},{"start_seconds":33,"text":"widget to a the shop creates a receipt for a and the bank transfers money from a to the shop these are sub-transactions and all","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=33s"},{"start_seconds":42,"text":"sub-transactions should happen atomically meaning they all happen at the same time and they either all happen or nothing happens","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=42s"},{"start_seconds":50,"text":"the Privacy here means that only person a in the shop should know the details of the transaction the bank should know nothing because it doesn't concern them","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=50s"},{"start_seconds":58,"text":"all the banks should be responsible for is to transfer the cash in order to fully appreciate and understand the value of sub-transaction","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=58s"},{"start_seconds":65,"text":"privacy let's go through a few examples let's take a look at the following example of an insurance claim workflow","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=65s"},{"start_seconds":73,"text":"this is an example of a delivery versus payment flow that involves multiple parties in today's architecture setup without","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=73s"},{"start_seconds":81,"text":"the concept of sub-transactions or even distributed ledgers it resembles something like this on the bottom left we have a clinic","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=81s"},{"start_seconds":89,"text":"at the top we have an insurance provider and in the bottom right we have a bank they all have their own databases since","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=89s"},{"start_seconds":96,"text":"they are separate entities today when I finish a procedure at the clinic and pay my fee at the payment Gateway what happens is I'm giving the bank authority","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=96s"},{"start_seconds":105,"text":"to transfer balance from my bank account to the clinics account upon confirmation from the bank the","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=105s"},{"start_seconds":112,"text":"clinic then gives me a receipt and saves the transaction into their database and a record is created next I go to the","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=112s"},{"start_seconds":120,"text":"insurance provider upload the receipt to their system and now we can see there are two instances of a record the insurance provider then checks with","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=120s"},{"start_seconds":128,"text":"the clinic whether the receipt is valid this process is called reconciliation reconciliation is an expensive process","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=128s"},{"start_seconds":135,"text":"because it's a time-consuming manual process that can be prone to errors reconciliation errors are costly and","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=135s"},{"start_seconds":143,"text":"plague entire Financial systems this is why the reason why distributed ledgers were invented in the first place","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=143s"},{"start_seconds":149,"text":"finally the insurance company informs the bank to transfer the balance to my bank account and now I'm fully reimbursed for the procedure I've just","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=149s"},{"start_seconds":158,"text":"done it's also worth noting that this is a simplified example this assumes that the clinic and the user are with the same","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=158s"},{"start_seconds":165,"text":"bank but in reality multiple Banks may be involved which introduces additional reconciliation requirements","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=165s"},{"start_seconds":173,"text":"in today's model without the use of distributed Ledger Solutions privacy is taken care of you can see each entity","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=173s"},{"start_seconds":181,"text":"has their own database workflows are also separate and sequential meaning they aren't Atomic each entity is","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=181s"},{"start_seconds":188,"text":"coordinating with each other in some sort of manual sequential way there is the issue of reconciliation but","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=188s"},{"start_seconds":195,"text":"also who manages the source of Truth is it the clinic is it the insurance company these are all issues that","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=195s"},{"start_seconds":202,"text":"distributed ledgers try to address now what if all entities decide to use one database it seems like things would","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=202s"},{"start_seconds":210,"text":"be more efficient right you don't need to upload a separate receipt to the insurance provider because they already have access to this record and can just","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=210s"},{"start_seconds":218,"text":"tell the bank what to do but this violates data protection and privacy your patient records should not be disclosed to anyone and the clinic","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=218s"},{"start_seconds":226,"text":"should not know how much money is sitting in your bank account either and that's why even though distributed ledgers can help solve the issue of","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=226s"},{"start_seconds":234,"text":"reconciliation Enterprises have been slow to adopt due to data leakage or the lack of sub-transaction privacy","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=234s"},{"start_seconds":242,"text":"here we have another delivery versus payment example but this time let's see how it should look when we have sub-transaction privacy let's consider a","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=242s"},{"start_seconds":250,"text":"transaction where Alice buys some shares from Bob in the real world such a transaction would not be between two individuals and it would involve","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=250s"},{"start_seconds":258,"text":"numerous intermediaries but for the sake of Simplicity let's assume that this is a transaction between two people and it only involves a bank that facilitates","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=258s"},{"start_seconds":267,"text":"transfer of cash and a share registry that facilitates transfer of share ownership and no other intermediaries","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=267s"},{"start_seconds":274,"text":"Alice transfers Bob a hundred dollars the registry then transfers the shares from Bob to Alice these two sub-transactions are happening","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=274s"},{"start_seconds":283,"text":"at the same time they're Atomic in addition the registry shouldn't know how much money either of them have in the bank all the registry should know is","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=283s"},{"start_seconds":291,"text":"that it should be transferring the ownership and all the banks should know is that it's transferring the balance there can't be any data leakage between","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=291s"},{"start_seconds":299,"text":"the bank and the share industry the ability to maintain privacy of the data which spans across privacy sets is what","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=299s"},{"start_seconds":306,"text":"we call sub-transaction privacy now that we've gone through two examples to see why sub transaction privacy is","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=306s"},{"start_seconds":314,"text":"necessary let's understand how other distributed Ledger Solutions aren't able to provide the level of privacy that","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=314s"},{"start_seconds":320,"text":"Canton can provide if we were to use ethereum you can see all nodes have access to the same Ledger","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=320s"},{"start_seconds":328,"text":"ethereum tackles the issue with reconciliation very well because all nodes have a copy of the record however","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=328s"},{"start_seconds":336,"text":"privacy is lost this is not a solution for organizations that need strong privacy agreements","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=336s"},{"start_seconds":343,"text":"with other blockchain Solutions such as Corda or fabric their transactions don't preserve privacy either so looking on","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=343s"},{"start_seconds":350,"text":"the right side everyone in the transaction can see all components of that transaction so even though the blockchain might be","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=350s"},{"start_seconds":358,"text":"permissioned stakeholders in a contract can still see everything so if we look back to this DVP example","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=358s"},{"start_seconds":365,"text":"on the left hand side the sub-transaction Privacy can be achieved with Canton while on the right hand side","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=365s"},{"start_seconds":372,"text":"everyone has a view of the components of that transaction to summarize when data is often used in","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=372s"},{"start_seconds":380,"text":"conjunction with workflows that span across users and applications the privacy of this information must not be","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=380s"},{"start_seconds":387,"text":"leaked in these composed workflows the composed workflows and the privacy of the information is what we want to guarantee","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=387s"},{"start_seconds":396,"text":"finally for additional resources you can visit the download Community to ask any questions that you might have or go to","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=396s"},{"start_seconds":403,"text":"the docs and read and get started on vaml and Canton thank you","url":"https://www.youtube.com/watch?v=R8DjmPyaYQI&t=403s"}],"youtube_url":"https://youtube.com/watch?v=R8DjmPyaYQI","url":"https://ccpedia.xyz/videos/R8DjmPyaYQI"}