Cardano Announces Privacy-Centric Blockchain Project Dubbed 'Midnight'
In the ever-evolving digital landscape, privacy continues to be a major concern, especially in the blockchain industry. After witnessing the limitations of privacy-focused projects like Monero, Candao, a crypto project backed by Input Output Global (IOG), is ready to shake things up.
Charles Hoskinson, the founder of Candao, recently spoke at an event at Edinburgh University and announced the launch of a new token called Dust, which will run a separate and privacy-focused ecosystem called Midnight. This new blockchain is poised to surpass the capabilities of previous privacy-focused coin projects.
The primary goal behind Midnight is to provide individuals, companies, and developers with privacy and security over their commercial and personal data, all while ensuring fundamental freedom. It does this by utilizing zero-knowledge-proof technology, a significant departure from the privacy protocols implemented in the past.
Unlike previous privacy protocols, Midnight allows for government authorities' involvement based on permissions granted by the system, giving users control over their privacy and secrecy. This is a stark contrast to the aggressive stance taken by government authorities who have concerns about how privacy products might aid bad actors in moving funds illegally.
In the past, privacy protection has been a concern for both tech tycoons and privacy-focused celebrities, but government authorities have remained skeptical. One notable example is the ban on the Ethereum-based privacy tool Tornado Cash, which officials alleged helped North Korean hackers launder stolen crypto funds.
Criticizing previous privacy blockchain projects, Hoskinson argued that adding privacy to blockchain projects was challenging, which slowed the adoption of cryptocurrencies. He particularly targeted projects like Zcash and Monero, stating that their use of peculiar technologies like zk-SNARKs signatures restricted developers' ability to modify project infrastructure according to need.
Instead, Hoskinson proposed using more accessible languages such as JavaScript to ensure privacy. He explained that Midnight evolves privacy-coin technology by making everything anonymous by default, unlike Zcash and Monero's use of SNARKs and ring signatures. This allows for the running of private smart contracts and private computation, including private decentralized exchanges.
Meanwhile, Emurgo, another firm backing Candao, recently announced the launch of a Cardano-regulated stablecoin named USDA, which is expected to roll out in early 2023. USDA is the first stablecoin project under Candao, fully backed with fiat assets.
Midnight's design addresses scalability and developer accessibility while prioritizing cross-chain functionality—a departure from earlier projects that operated as isolated networks. It features a dual-token system: NIGHT for governance, and DUST for anonymous transactions and smart contract execution. The new blockchain focuses on maintaining regulatory compliance, differentiating it from fully anonymous networks like Monero.
By leveraging advanced cryptographic techniques, Midnight aims to enable secure data management and confidential transactions, while maintaining regulatory compliance and fostering collaboration between blockchain networks.
- Charles Hoskinson, the founder of Candao, believes that previous privacy-focused projects like Zcash and Monero have faced challenges in adding privacy to blockchain due to the use of peculiar technologies, such as zk-SNARKs signatures and ring signatures, which restrict developers' ability to modify project infrastructure according to need.
- Midnight, the new blockchain that is poised to surpass the capabilities of previous privacy-focused coin projects, uses zero-knowledge-proof technology, a significant departure from the privacy protocols implemented in the past, and allows for government authorities' involvement based on permissions granted by the system, giving users control over their privacy and secrecy.
- With Midnight's launch, Candao has announced the first stablecoin project under their umbrella, USDA, a Cardano-regulated stablecoin expected to roll out in early 2023, which is fully backed with fiat assets. The new blockchain focuses on maintaining regulatory compliance, differentiating it from fully anonymous networks like Monero, and aims to foster collaboration between blockchain networks by leveraging advanced cryptographic techniques for secure data management and confidential transactions.
