The cryptocurrency market may be swimming in a sea of red, but the work at Cardano (ADA) doesn’t seem to be slowing down, including on its new privacy-focused blockchain, Midnight, as the platform’s founder Charles Hoskinson recently detailed.
Indeed, the Cardano founder talked about privacy and blockchain, focusing on how the Midnight chain solves one of the essential problems in the cryptocurrency industry, including the confidentiality of ‘smart contacts’ in an interview with YouTuber Cory Costa, streamed on December 7. According to Hoskinson, blockchain isn’t even supposed to be in use from a regulatory perspective because:
“Every time you engage in a regulated business, there’s a privacy requirement because a regulated business requires you to give away some personally identifiable information and there’s a privacy law on the other side that says you have to keep it secret. The problem is, if you try to do that in a blockchain setting, your private information becomes public to everybody.”
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How Midnight solves the problem
In the view of Cardano’s founder, the solution was to create a confidentiality framework in the form of Midnight, so “instead of having a privacy coin, you have a confidentiality framework, you have smart contracts that are private, which is a huge deal.”
Furthermore, he explained that:
“Midnight is a partner chain to Cardano, and the idea is that Cardano provides security, infrastructure, decentralization, and ecosystem. (…) Midnight provides a regulated value transfer protocol and a framework for people to build confidential smart contracts.”
Finally, Hoskinson concluded that Midnight was “the hardest product we’ve ever worked on. It makes Cardano look like kid’s play because you have all the problems of Cardano (…), but at the same time, you have to build an additional layer of capabilities to deal with privacy and then take privacy to the next generation, which is confidentiality.”
Work continues at Cardano
In addition to the work on the Midnight privacy-focused blockchain, Cardano has been tackling multiple other fronts at the same time.
Earlier, Finbold reported on Cardano reactivating the work on the testnet version of the Djed stablecoin that will be issued on its proof-of-stake (PoS) blockchain in January 2023, and its tests now include new capabilities, like the Vasil hard fork compatibility, activity history, and more.
The platform has also been recording a steady increase in Plutus smart contracts as well, growing their total number by over 300% in 2022, which has reached 4,313 scripts as of December 7, as the latest data demonstrates.
On top of that, the Cardano builder Input Output Global (IOG) plans to establish the world’s first blockchain decentralization index, and its blockchain has recently recorded the highest development activity among all networks in November.
Watch the entire video below:
