I want to ask if anyone has ever had such a frustrating moment: wanting to handle a business online, having to submit all personal information like ID, address, and income, fearing that it might be leaked one day; investing in on-chain finance, where transaction records are all posted on a public chain, and strangers can figure out your asset situation with just a few clicks; companies wanting to move assets like artworks and real estate onto the chain, but fearing core business information exposure, ultimately can only give up. The current internet and blockchain seem to always make us choose between 'data usability' and 'data security.' However, this new blockchain project, Midnight, aims to turn this dilemma into a multiple-choice question—using privacy protection technology to allow data to create value without being exposed. It’s not some esoteric technical gimmick but is aimed at the real pain points of developers and enterprises, though behind this beautiful vision lie many unavoidable challenges. Midnight is a privacy-focused underlying public chain that relies on zero-knowledge proof technology to achieve 'selective disclosure' of data—simply put, it can prove 'I have this qualification/ability/data' without revealing specific information. From its inception, it has partnered with Cardano, a well-established 'big player,' as a launch partner, directly utilizing Cardano's node resources and ecosystem, starting with a solid foundation which is a significant advantage in the new blockchain project landscape. For developers: no need to grapple with obscure technologies; if you can write code, you can create privacy applications. Those who have done blockchain development understand that building an application with privacy features is like crossing a hurdle: having to learn niche programming languages, study complex zero-knowledge proof circuits, and the code you write is difficult to integrate with existing systems; after all that effort, you might not even produce a usable prototype. This is why many privacy blockchain technologies seem great but never really take off—barriers are too high, keeping most developers out. Midnight seems to have thoroughly understood the 'pain points' of developers. It directly uses TypeScript for core development, which by the first half of 2024 is already the second most popular programming language globally; front-end and full-stack developers are familiar with it, eliminating the need to spend months learning a new language. It has also created a dedicated language called Compact, which separates application development from cryptographic operations—developers can focus solely on implementing business logic for smart contracts, while the complex encryption and zero-knowledge proof conversions will be handled automatically by Compact, just like taking a photo with your phone without needing to understand optical principles; just press the shutter. In addition, its zero-knowledge proof architecture has also been optimized, not using generic circuits but rather creating specialized circuits based on Kachina technology. This way, multiple applications can run simultaneously on the same chain without competing for resources, leading to much higher efficiency in commercial scenarios. For developers, this is like moving from a single-lane road to a multi-lane highway—easier and more efficient. For enterprises: privacy, compliance, and cost—three essential needs covered. If being friendly to developers is the 'stepping stone,' then solving real problems for enterprises is Midnight's core competitive advantage. When enterprises build blockchain applications, they fear three things: data leakage, non-compliance, and unpredictable costs. Midnight directly addresses these three issues. First, data privacy is its fundamental principle. Unlike traditional public chains where 'all information is public,' Midnight's ledger can separate 'shielded data' from 'non-shielded data'—for example, if the transaction amount needs to be confidential, it uses shielded data; if the validity of a transaction needs to be verified by everyone, non-shielded data is used. Enterprises can choose as needed, hiding what should be hidden and revealing what should be shown. More importantly, users' private data does not exist on a public chain but is stored on their own mobile phones and computers, turning the originally centralized 'data target' into a decentralized 'data network,' making it much harder for hackers to attack as they can't find a focal point, which is significantly safer than traditional databases. Then there's compliance, a common pitfall for many privacy projects, but Midnight has come up with clever ideas. It doesn’t turn privacy into 'absolute secrecy' but instead implements 'programmable privacy protection'—enterprises can set data disclosure rules according to different countries' and businesses' regulatory requirements. For example, when faced with financial regulatory audits, they can provide the core information needed for compliance without leaking ordinary user data; when conducting cross-border business, they can adapt to different regional privacy regulations. This 'controllable privacy' allows enterprises not to be caught between innovation and compliance. Finally, cost issues are addressed, completely resolving the blockchain fee issue of 'high one moment, low the next.' The fees of ordinary public chains are linked to the native token, which fluctuates daily, making it impossible for enterprises to budget; Midnight separates 'transaction fuel' from the native token, using dedicated shielded resources DUST for transaction fees, which stabilizes the price, allowing enterprises to accurately calculate operational costs, and in the future, they might even pay with fiat currency—this is a solid assurance for enterprises seeking stability. Dual-token design: avoiding regulatory pitfalls while ensuring network security. Token design is the 'economic heart' of blockchain projects, and many privacy projects fail because they either use shielded tokens as transaction fuel, which can't get listed on exchanges due to regulatory issues, leading to poor liquidity and no one willing to maintain the network; or they use non-shielded tokens, sacrificing privacy in the process. Midnight's solution is simple: it creates two tokens, NIGHT and DUST, each serving its purpose. NIGHT is non-shielded, with a fixed total supply and deflationary, primarily used for network governance and rewarding node mining. It started as Cardano's native asset, supported by Cardano's ecosystem, ensuring liquidity and attracting a large number of node operators to maintain the network and strengthen its security; DUST serves as shielded 'transaction fuel' for processing on-chain transactions, characterized as 'like electricity, valuable for use but cannot be stored and will gradually diminish,' and it cannot be transferred. This fundamentally avoids regulatory concerns regarding shielded tokens, while DUST is continuously generated from the NIGHT pool, ensuring stable supply and that transaction fees do not fluctuate wildly. This design not only addresses the regulatory pain points of privacy projects but also maintains network security and liquidity, which is undoubtedly a clever idea. Practical scenarios: not just 'hiding data,' but empowering privacy in the real world. No matter how good the technology, without practical scenarios, it's all just castles in the air. Midnight's privacy capabilities are not about hiding data for the sake of hiding, but about maximizing data value while ensuring security. Its core practical scenarios directly address current real needs. If you want to prove your adulthood, you don’t need to send a photo of your ID; you just need to prove 'I am over 18,' without exposing your birthday or address; if you want to apply for a job, you don’t need to reveal your full academic background and work experience; you just need to prove 'I have a certain degree/relevant work experience'—this is how Midnight operates in the digital identity space, allowing 'proving oneself' without leaking privacy. In the future, decentralized exchanges can also rely on this for compliant KYC, satisfying regulations while protecting users. Real estate, artworks, and commodities looking to tokenize on-chain fear information leakage—high-value artworks leaking ownership information could be stolen, and exposure of real estate transaction information might affect pricing. Midnight can allow proof of asset ownership to go on-chain without revealing asset details, owner identity, or transaction records, enabling real assets to be safely converted into on-chain assets, unlocking new possibilities such as fragmented trading of niche artworks and on-chain traceability of commodities. Community voting and corporate shareholder decisions are either opaque, leading to distrust in results, or too transparent, making people hesitant to express their true intentions. Midnight can create an anti-fraud voting system that proves 'the voter is qualified, and the vote is valid' without disclosing anyone's specific choice; the results can be publicly verified but cannot be traced back to individuals—this allows for both fairness and privacy in voting decisions. Standing on the shoulders of Cardano: winning at the starting line but not omnipotent. From the very beginning, Midnight has worked closely with Cardano, a smart move. Cardano is a veteran player among public chains, secure and mature, with a large number of node operators. Midnight directly lets these operators become its initial block producers, requiring only a software package to participate; this not only provides a decentralized node network from its inception but also allows direct integration with Cardano’s developers and enterprise users without starting from scratch. Moreover, its technology supports cross-chain integration with non-privacy public chains like Ethereum and Cardano, allowing for 'hybrid applications'—using Midnight's privacy capabilities to protect data while leveraging other public chains' settlement and ecosystem capabilities for transactions, truly achieving interoperability between blockchains. However, relying on a big tree isn’t a panacea; Cardano's ecosystem characteristics and regulatory policies will directly impact Midnight's development in the future, which is a double-edged sword. Rationally speaking: behind the beauty, there are challenges that cannot be avoided. After discussing the highlights, we must also address the reality—Midnight is still a developing project, and the road ahead is not easy. The challenges it faces are also common issues across the privacy blockchain sector. First, there is the test of universal applicability regarding technology landing. It improves efficiency with specialized ZK circuits, but specialized circuits mean 'strong targeting but weak universality.' In the future, if developers want to create niche, complex privacy applications, can the specialized circuits support that? Can the compatibility and scalability of the Compact language keep pace? All of these need to be verified through practical applications because, ultimately, technology must be usable. Secondly, there is the fear of 'getting praise but no users' in ecological construction. There has never been a shortage of technically strong privacy blockchain projects, but many ultimately fail—developers find it troublesome and are unwilling to come, enterprises lack genuine needs and are hesitant to adopt; in the end, only technology remains without practical application. Although Midnight has lowered the barriers for developers, how can it attract people to actually build applications and implement them? How can it convince enterprises to abandon traditional solutions and choose it? This requires not just technology but also long-term ecological incentives, practical case studies, and business collaborations—not something that can be resolved with a mere white paper. Then there’s the uncertainty of regulations. Midnight’s 'programmable privacy' aims to balance privacy and compliance, but global blockchain regulatory policies are still changing, and different countries have vastly different attitudes toward data privacy and encrypted assets. For instance, some countries impose strict controls on shielded transactions; even if DUST cannot be transferred, will there be new regulatory requirements in the future? Will NIGHT, as Cardano's native asset, be affected by local regulatory policies? These are all Damocles' swords hanging overhead. Additionally, there’s the economic balance of the dual tokens. The design of NIGHT and DUST is clever, but balancing the two is difficult. NIGHT is a deflationary token, with its price fluctuating with the market, while DUST is generated from the NIGHT pool, and its supply closely relates to NIGHT's ownership and circulation. If NIGHT's price fluctuates wildly in the future, will that affect DUST's supply? Could there be situations where NIGHT is hoarded, leading to insufficient node incentives, or DUST runs low, causing transaction fees to rise? Currently, the team hasn’t disclosed the detailed economic relationship between the two, which is a primary concern for the market. Finally, there is fierce competition in the privacy sector. There are too many projects currently working on blockchain privacy: established privacy coins like Zcash and Monero, which have mature technology; Layer 2 projects like zkSync and StarkNet, which are backed by the Ethereum ecosystem and have many developers; and several new public chains that emphasize 'privacy + compliance.' For Midnight to stand out, it needs more than just developer-friendly technology; it must create differentiation—such as deeper enterprise services or a more comprehensive cross-chain ecosystem, or it risks being drowned in competition. Lastly, it must be said that the significance of Midnight is to make blockchain more 'practical.' The emergence of Midnight is not just about adding another blockchain project but represents an important shift in the blockchain industry: from the past of 'technology for technology's sake, decentralization for decentralization's sake' to 'solving real problems and pursuing practical value.' In the past, many blockchain projects boasted impressive technical parameters but overlooked the actual needs of developers and enterprises—developers couldn't learn, enterprises couldn't afford it, and ultimately, everything remained conceptual. Midnight has prioritized 'user-friendly, enterprise-ready' from the start, using privacy technology to solve the most pressing issues for everyone, which is how blockchain should be. It is like a reliable privacy steward, ensuring that your data isn't exposed while preventing privacy from becoming a stumbling block for compliance, trying to find the most comfortable balance between 'data usability' and 'data invisibility.' Of course, its future still holds many uncertainties; technology implementation, ecological construction, and regulatory adaptation, each step is full of challenges. But at the very least, it has painted a picture of a more reliable blockchain world for us: in this world, data belongs to individuals, privacy is protected, developers can innovate with ease, and enterprises can implement solutions with confidence; blockchain can finally step out of the laboratory and truly enter our lives. As for whether this dream can be realized, that depends on actual actions, but at least, this attempt is worth looking forward to.
