Cardano Midnight: A New Privacy Blockchain
Cardano Midnight is a privacy-focused blockchain set to revolutionize privacy and regulation in the blockchain landscape. The blockchain, a sidechain of Cardano, is yet to be launched.
According to its official website, it will be a smart contract blockchain that allows users to only share information they want. It will enable users to share highly sensitive information without the fear of data leaks or censorship.
It will also allow developers to create DApps using many commonly used programming languages, making developing and deploying smart contracts easier.
The sidechain aims to protect the fundamental freedom of association by collaborating through open rules agreed upon by its community. It also seeks to protect the freedom of commerce by allowing users to exchange value securely and privately but in a regulatory-friendly way. Thirdly, it aims to protect freedom of expression by allowing users to express ideas and opinions without the fear of censorship.
Zero-knowledge-proof technology (ZKP)
Cardano Midnight is based on zero-knowledge-proof technology. The technology, which first appeared in computer science and cryptography, works by verifying information with minimal knowledge shared between parties.
The technology is popular because it tries to eliminate issues plaguing other authenticating ways, like hacking and loss of control of user data. Other privacy-focused blockchains using the technology include Monero (XMR) and ZCash (ZEC).
DUST token will be the native token of Midnight. Its use cases haven't yet been revealed. However, most project followers believe it will be used to pay gas fees. The token will co-exist with ADA, the native token of Cardano.
Once it launches, stakers on Cardano will earn DUST tokens automatically together with ADA rewards, according to its developers.
After the sidechain's announcement, Monero was quick to point out that it had a "backdoor". The privacy network claimed that the opportunity for authorities to audit, which was mentioned in the announcement of Midnight, is a “backdoor” for regulators.
IOG countered the allegations stating that regulators' interference would only be possible if authorized. Monero later called off its allegations and deleted the tweets that drew suspicion to the project.
The sidechain was announced on 18 November, 2022. However, informants reveal that developers have been working on it, in secret, for four years. Charles Hoskinson, the CEO of IOG, admitted that he had to bite his tongue on many occasions not to reveal the project.
Cardano Midnight and its native token, DUST, are part of the Voltaire era. If successful, the project is set to revolutionize privacy and regulation in the crypto space and give blockchains like Monero and ZCash a run for their money.
As of writing, not much about the project is known. However, according to Hoskinson, 2023 is set to be a fun and exciting year for the project. Updates are on the way.
Author: Jay Jackson
Jay Jackson is a crypto trader, researcher and freelance writer. He works closely with people and businesses in the crypto sphere, writing blog posts, guides, press releases, reviews and ebooks.