I have been thinking about why at this point in time, we need a privacy sidechain like @MidnightNetwork , rather than continuing to improve existing anonymous solutions.
The core issue is that most current privacy technologies are in a state of disconnection from the real world, while the emergence of Midnight seems more like a compromise and integration with real-world rules.
It separates value and privacy through a dual-token architecture, which is indeed logically advanced, but whether this design can truly be accepted by communities that pursue extreme decentralization is still a question mark for me.
From a strategic perspective, it is an important card for Cardano's attempt to break out of its circle, but the identity of the sidechain also determines that its security will heavily rely on the consensus strength of the mainnet in the early stages.
I infer that more traditional institutions will enter Web3 through compliant privacy channels like Midnight in the future, but this requires a long process of building trust, which definitely cannot be completed at the moment the mainnet goes live.
The current Midnight is like a newly built precision laboratory, with advanced instruments inside, but whether it can produce world-changing results will depend on how effective the subsequent research teams are, and I suggest maintaining cautious optimism about its long-term value.