Last week in London, Mastercard hosted an extraordinary blockchain innovation sprint, marking a significant milestone in the development of their groundbreaking Multi-Token Network (MTN).
During Mastercard’s first-ever blockchain innovation sprint in London, exciting fintech startup Polytrade presented their revolutionary blockchain-based platform for trade financing, which could seamlessly integrate with the Multi-Token Network (MTN). This cutting-edge network aims to transform the transaction process, securely facilitating digital asset exchange between consumers, merchants, and banks.
In a recently published whitepaper, Mastercard explains how the MTN acts as a “network overlay,” optimizing blockchain transactions for legacy finance systems. The MTN would set new standards for compliance, governance, interoperability, and stability of payment tokens, mitigating the risks and challenges that have hindered mainstream blockchain adoption. The whitepaper describes the MTN as an entirely new scheme that forms a secure network overlay across multiple public and private blockchains.
Mastercard envisions the MTN as an essential layer in a holistic system of digital networks, optimizing blockchain transactions between banks, service providers, and the settlement layer. With the MTN, the potential for revolutionizing the financial industry is limitless.
The power of MTN
Polytrade is revolutionizing cross-border trade transactions by developing a decentralized protocol that empowers small and medium enterprises to access funding. Their innovative approach involves tokenizing invoices and trade-related assets, enabling companies to access much-needed funds even during times of illiquidity. By decentralizing invoice financing, they are opening up new possibilities for businesses around the globe.
Polytrade sees great potential in partnering with Mastercard’s visionary Multi-Token Network (MTN). They are thrilled by the rapid progress and incredible team behind the MTN, stating their bullish outlook on the collaboration. Working alongside Mastercard and leveraging the MTN, Polytrade aims to explore exciting use cases that harness the power of blockchain technology.
Mastercard is bridging the gap between traditional financial institutions and the crypto-native world, creating a groundbreaking network that unlocks the true potential of blockchain and digital assets for mainstream commerce. The remarkable progress of companies like Polytrade, which focuses on tokenizing real-world assets, is receiving well-deserved attention and recognition within the Web3 space.
The MTN pilot program, as outlined in the whitepaper, is specifically designed to address concerns surrounding compliance, governance, and interoperability. Mastercard is committed to overcoming these barriers that have hindered widespread adoption, paving the way for a future where blockchain technology can seamlessly integrate with the traditional financial system.
How MTN compares to blockchain networks
The Multi-Token Network (MTN) is a cutting-edge overlay network designed to enhance the security, compliance, and interoperability of existing public and private blockchains. Unlike traditional standalone blockchains, MTN does not have its own consensus mechanism or validate transactions. Instead, it acts as a bridge, settling transactions on connected underlying blockchains.
MTN goes beyond being just another blockchain. It serves as a network overlay that spans across multiple chains, establishing common rules, compliance standards, and governance procedures. This innovative framework leverages the security and immutability of connected blockchains while adding crucial compliance and interoperability capabilities.
MTN’s primary purpose is to enhance the trustworthiness and flexibility of transactions across different ecosystems. It seamlessly connects various blockchains, facilitating secure and efficient transactions. The emphasis is on creating powerful network effects by linking chains, rather than introducing a completely new consensus mechanism.
In summary, MTN acts as a pivotal connector for different blockchain networks, enhancing their capabilities and fostering collaboration. While it doesn’t function as a standalone blockchain, its value proposition lies in providing a scalable and trusted framework for seamless transactions in the blockchain ecosystem.