Cardano Is Launching New Privacy Blockchain and Token
Input Output Global (IOG) the firm behind the Cardano blockchain is releasing a new privacy-focused blockchain called Midnight and a token called dust to accompany the new network.
Midnight which is underpinned by zero-knowledge-proof technology is one of many side chains now being deployed around Cardano and will go beyond previous privacy coin projects by delivering zero-knowledge-proof smart contracts IOG CEO Charles Hoskinson said during an event at Edinburgh University in Scotland on Friday.
The system will walk the between preserving privacy and allowing regulators and auditors a backdoor into the system when permission is granted he said.
"Midnight has evolved privacy-coin technology is one of many side chains now being deployed around Cardano and will go beyound previous privacy coin projects by delivering zero-knowledge proof smart contracts IOG, CEO Charles Hoskinson said during an event an Edinburgh University in Scotland on Friday."
The system will walk the line between preserving privacy and allowing regulators and auditors a backdoor into the system when permission is granted he 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,” Hoskinson said in an interview with CoinDesk, referring to two other privacy coins and their encryption methods.
"This is completely new way of writing and running private smart contracts and private computation so you can have a private DEx or go mine an anonymous data set or these types of things."
Privacy coins have always been lionized by crypto libertarians but have been viewed warily by regulators fearful of how the technology may be help facilitate financial crime yet privacy is something that every business has a legal requirement to explore these days, Hoskinson said, he noted that the difficulty of figuring out how to add privacy to blockchain has prevented its adoption.
A paper published two years back by IOG titled "Kachine" which dives into privacy-enhanced smart contracts is now coming to fruition in the real world, Hoskinson said this has generated interest within the once hyped world of enterprise blockchains he added explaining that Midnight will be working with Hyperiedger, for ex. which is a consortium of large firms exploring private and Permissioned ledger for things like supply chain management.
This is what the enterprise wants and we have seen Walmart and some of the largest companies in the world working on privacy with Hyperledger Hoskinson said at the same time we can service traditional cryptocurrency needs especially when you look at DEXs that want to prevent front-running and these types of things.