In the current cryptocurrency circle, today this ecosystem gets rich, tomorrow that track takes off, and the day after tomorrow which L2 data explodes. After watching for a long time, it really can lead to aesthetic fatigue, especially with some L2 projects that, when they go live, are met with great fanfare, but after a couple of months, no one mentions them anymore. Everyone slowly understands that just issuing a token without a real scenario ultimately leads to existing funds cutting each other, which is meaningless. Because of this, I've recently been looking at some ideas that are a bit different. For example @MidnightNetwork , it is based on the Cardano ecosystem, focusing not on how high the TPS is or how much the TVL is, but rather on how to balance data privacy and compliance. Today I want to talk about its logic, which I find quite interesting.
First of all, Midnight is not the kind of privacy chain that 'makes you completely invisible.' It introduced a concept called 'rational privacy,' with two core points: selective disclosure + zero-knowledge proof. What does it mean? Previously, when you proved on-chain that 'I am qualified to do something,' you often had to reveal all your assets. For example, to prove you are over 18, you had to upload your entire ID. But Midnight's approach is to use ZK proofs to only tell the other party the conclusion, such as 'I am indeed over 18,' without exposing your specific birthday, ID number, or home address. This way, verification is completed while privacy is preserved. It doesn't make you hide completely, but allows you to participate in on-chain activities without having to default to 'exchanging privacy for convenience.' I quite agree with this because, in reality, many scenarios only need a 'yes or no' conclusion; there's no need to show everything.
So what is this $NIGHT token for?
It is the native token of the network, mainly used to pay for some real costs, such as generating ZK proofs, verification, and privacy computing. Additionally, it participates in governance, voting to decide on some rule adjustments. There's also an interesting design called DUST. You can stake $NIGHT to generate DUST, which can be used to subsidize transaction fees or lower user thresholds. In simple terms, it helps developers create better user experiences, allowing users to use it at a low cost without having to deal with complex concepts right away. This is quite crucial for the ecosystem's cold start.
Why do I think this direction is meaningful?
Because the bottleneck of on-chain applications is often not performance, but rather that they are 'not usable.' For example, KYC, credit scoring, medical data, supply chain traceability—these scenarios all require verification of authenticity but cannot expose the data. Once on-chain, it’s like running naked; who dares to use it? Midnight's solution is: by default, do not expose, and only provide conclusions when necessary. This leaves room for many institutional applications and compliance scenarios, and also makes ordinary users feel safer. Privacy is no longer just a slogan but a practical tool for solving problems.
Can it be run out? I think I need to focus on a few things:
- Whether the developer tools are user-friendly. If integrating ZK is troublesome, developers will definitely not want to play along.
- Whether the user experience is smooth. There is privacy protection, but if transactions are delayed for a long time and interactions are complex, users won't stay.
- Whether the ecosystem is truly driven by real demand. Are there DApps that people really need and are continuously using, rather than just temporarily gathering to grab airdrops?
Of course, challenges are also evident. It is backed by Cardano, and the popularity of the parent chain directly affects attention; the privacy track itself has high thresholds, and cold starts take time; whether the subsidy model can turn into self-circulation is also a question mark. However, it must be said that the trend is for Web3 to move towards the physical world and compliance. In this process, being able to provide 'dignified connections'—verifiable but not naked—indeed has its unique value. Privacy is gradually no longer a geek's ideal but a cost and risk issue in reality. DYOR. Ultimately, the landing still depends on real scenarios; just telling stories is useless.#night