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This new privacy-centric blockchain will function as a side-chain of Cardano and offer zero-knowledge-proof smart contracts.
Cardano’s parent Group Input Output Global (IOG) has announced the launch of a new data-protection and privacy-centric blockchain platform along with an accompanying token.
New Privacy-Centric Blockchain
Charles Hoskinson, the company’s chief executive officer made this announcement last Friday while speaking at an event at Edinburg University in Scotland. dubbed “Midnight” the blockchain will function as one of the side-chains running off Cardano and shall offer zero-knowledge-proof smart contracts.
This would allow parties to complete transactions without the need of disclosing any identifiable data to each other. The native cryptocurrency of the Midnight blockchain is “Dust”.
Interestingly, this development comes at a time when regulators worldwide have been going after privacy-centric blockchain platforms. However, knowing this fact, Charles Hoskinson has kept some room to address this matter.
He said that along with offering its users the required privacy, the Midnight blockchain will still allow authorities to access the system if permission is granted. Thus, in the case of alleged illegal activities, authorities can still probe the Midnight blockchain.
While referring to the existing privacy-centric blockchains like Monero and ZCash, the Cardano CEO said that they will power up the Mighnight blockchain with a more widely accepted programming language. This would also allow a wide range of developers to build atop the network.
Making Midnight Live by 2023
As of now, the blockchain network Midnight is still under development. However, Cardano’s parent group IOG said that it will continue to provide further updates as they work on it into 2023. In addition to Midnight, a fiat-backed stablecoin is also coming to the Cardano blockchain very soon.
Emurgo Pte. Ltd., one of the founding entities behind Cardano, will be launching the USDA stablecoin in the first quarter of 2023. Furthermore, Charles Hoskinson has also made an announcement regarding the Edinburgh Decentralization Index. As Cardano accelerates its developments in the DeFi space, this Index will start measuring the decentralization of cryptocurrencies amid the recent contagion spread with the FTX collapse.
This will be an important development as it seeks to bring transparency and trust within the crypto community. Cardano’s native cryptocurrency ADA has been subject to a major correction in the crypto space. On Monday, November 21, the ADA price tanked by nearly 10% and is currently trading at $0.3042.