Cardano and Ripple explore a potential partnership, discussing the Midnight project to enhance privacy and tackle regulatory challenges.
One of the major forces that has always helped the growth of the cryptocurrency and blockchain industries is strategic partnerships between top companies to create innovations or projects that could improve the industry.
We are about to witness another such development following a recent interaction between two prominent figures and very vocal personalities in the crypto space: Cardano founder Charles Hoskinson and Ripple CTO David Schwartz.
Their interaction has sparked speculation about their plans for the crypto space. The discussion between this duo was centered around Midnight, a privacy-focused blockchain project. It was unveiled at ScotFest in 2022 to address privacy and compliance issues.
The project uses zero-knowledge proofs (zk-SNARKs) and a next-generation virtual machine, which gives it the capability to enable private transactions and private smart contracts while at the same time maintaining regulatory compatibility.
Hoskinson positively reviewed the Midnight project, saying that it can potentially drive privacy-centric decentralized applications and further blockchain development. In an AMA session on November 17, the Cardano founder expressed his optimism about a potential partnership between Cardano’s Midnight project and Ripple’s XRP system.
He believed that such a partnership could bring Cardano’s financial tools to XRP while utilizing Ripple’s liquidity and stablecoin solutions, including the RLUSD stablecoin, which is expected to launch soon.
Implications for the Crypto Industry: A Unified Front against Regulatory Challenges
Hoskinson then took to X to confirm his discussion with Ripple CTO David Schwartz, saying he had a great time talking to him about Ripple and Midnight. Schwartz also replied, describing Midnight as an extremely interesting project.
It was a pleasure talking to you. Midnight sounds extremely interesting.https://t.co/A9aI64bJsU https://t.co/e1b0feRwcJ
— David "JoelKatz" Schwartz (@JoelKatz) November 18, 2024
The potential collaboration between Ripple and Cardano will further strengthen and unify the crypto industry, giving it the necessary uniformity in confronting regulatory challenges and even developing innovations that could improve it.
Hoskinson and Schwartz’s discussion came after the Cardano founder recently revealed that he had a conversation with Ripple CEO Brad Garlinghouse, calling him a great CEO and very collaborative. In response to Hoskinson’s appraisal, Garlinghouse stated that it is time for the crypto community to unite and advocate for fair regulations and equal opportunities. He further mentioned that “a rising tide lifts all boats”, which could mean that everyone in the space benefits when the crypto industry improves.
Future Prospects: Potential Benefits of a Cardano-Ripple Partnership
The conversation between the Ripple CEO and Hoskinson further fuelled speculation about Cardano and Ripple joining forces on a project.
However, the potential collaboration between Cardano and Ripple would have been unpredictable before now, after a feud between the two communities caused by Hoskinson’s comments on Ripple’s legal issues. He has now apologized to the XRP community and called for unity in the crypto community.
The partnership between the two could benefit both organizations. Ripple’s banking network and money tools could support Cardano’s privacy and scaling efforts. Also, Cardano’s Midnight project could improve its handling of private transactions, including those involving stablecoins and international transfers, through the use of Ripple technology. However, nothing official has been announced yet.
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