The company behind the Cardano blockchain, Input Output Global, is launching a new, privacy-focused blockchain called Midnight and a token called dust to go along with the new network.
The entire cryptocurrency market is going down due to unexpected incidents like the Terra crash, the FTX crypto exchange crash, and many other cryptocurrency hacks.
This crypto winter is getting harder and harder for exchanges and crypto companies to survive. They are trying to introduce new security, privacy, and stability features to attract investors and crypto users.
To capture the same interest, the company behind the Cardano blockchain, Input Output Global (IOG), is launching a new privacy-focused blockchain called Midnight and a token called Dust. Charles Hoskinson, CEO of IOG, said that the Cardano network is striving to protect privacy while giving access to auditors and regulators.
During an event at Edinburgh University in Scotland on Friday, Charles Hoskinson said Midnight Blockchain is underpinned by Zero-Knowledge Proof (ZKP) technology. It is one of the many side chains currently deployed around Cardano. With the release of the ZKP smart contracts, this sidechain will surpass previous crypto coins.
Zero-Knowledge Proof algorithms use cryptographic techniques that enable the verification of transactions without revealing underlying information. ZKP with blockchain technology is a powerful combination for security-enabled e-commerce.
In an interview with coin desk, IOG CEO Charles Hoskinson said:
Midnight has evolved privacy-coin technology where everything was anonymous by default, which is what Zcash and Monero did with Snarks and ring signatures.
He also added that:
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.
Crypto libertarians have always supported private coins. But regulators are wary of it, fearing how the technology could help facilitate financial crime. But these days, every company has a legal requirement to explore privacy, Hoskinson said.
However, he noted that difficulties in understanding how to add privacy to blockchains have hindered its adoption.
Midnight Blockchain will be a protection-based blockchain that safeguards sensitive commercial and personal data, protecting the fundamental freedoms of trade, association, and expression for developers, companies, and individuals.
This new blockchain allows developers to build and deploy data protection-first DApps rapidly. Also, this Blockchain supports multiple programming languages, including TypeScript.