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Cardano To Launch Privacy-Focused Blockchain ‘Midnight’

Bitcoinist

Bitcoin News / Bitcoinist 167 Views

After privacy-focused projects like Monero failed to combat rising privacy issues in the blockchain industry, Cardano, a crypto project backed by the technology company Input Output Global (IOG), is preparing to launch a new privacy-focused blockchain. 

The digital world has seen fast growth in recent years, and almost every country interacted with new technologies such as blockchain, Web3 and cryptocurrencies. However, privacy protection, one of the most crucial online problems, remains a vulnerability in the industry.

Speaking at an event at Edinburgh University, Charles Hoskinson, founder of Cardano, revealed that the company would launch a new token known as Dust to run this separate and privacy-focused ecosystem. The company’s new blockchain, named Midnight, is expected to be a better version of previous privacy-focused coin projects. 

The main objective behind the development of Midnight is to give individuals, companies and developers privacy and security over commercial and personal data alongside serving them with fundamental freedom. While considering privacy a major concern, the project utilizes zero-knowledge-proof technology. 

Unlike the previous privacy protocols, the newly formed blockchain features government authorities’ involvement based on permissions granted by the system. As a result, it gives users control over their privacy and secrecy.

Tech tycoons and crypto celebrities always welcomed privacy products while the government authorities remained aggressive over concerns about how possibly a product can help bad actors move funds illegally.

One of its previous examples is the ban on the Ethereum-based privacy tool Tornado Cash; officials alleged the crypto mixer helped North Korean hackers to launder stolen crypto funds.

ADAUSD
Cardano’s ADA price is currently standing at $0.30. | Source: ADAUSD price chart from TradingView.com

Cardano CEO Criticized Monero, Zcash 

Today, privacy protection has become the primary concern of every legal company. However, Hoskinson said that adding privacy to blockchain projects was difficult, so it slowed down the adoption of cryptocurrencies. 

Criticizing the previous privacy blockchain projects, the CEO admitted Zcash and Monero used weird stuff like zk-SNARKs signatures which limited the developers’ reach to modify the project’s infrastructure as per the need. He said that writing instructions in an understandable language like JavaScript enables experts to ensure privacy. 

Hoskinson added;

Midnight has evolved privacy-coin technology where everything was anonymous by default, which is what Zcash and Monero did with SNARKs and ring signatures. This is a completely new way of writing and running private smart contracts and private computation. So you can have a private DEX (decentralized exchange) or go mine an anonymous data set or these types of things.

Emurgo, another firm backing Cardano, 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 Cardano, fully backed with fiat assets. 

Fintech Managing Director at Emurgo, Vineeth Bhuvanagiri, noted in a statement on Friday;

The introduction of a fully fiat-backed, regulatory-compliant stablecoin is the next step in realizing the future for our community.

Featured image from Pixabay and chart from TradingView.com
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