Today is already March 24th, and there are only 2 days left until the @MidnightNetwork creator event, so I need to sprint a bit more. Every time I start writing articles, I habitually take a stroll around Binance Square to see everyone's thoughts.
I find that whenever Midnight is mentioned, there is always a voice that rhythmically says: "Isn't this thing just created by ADA to suck blood?" or "Since ADA technology is so great, why not just do a privacy upgrade directly on the main chain? Instead, why start a new coin to cut leeks?"
To be honest, every time I see comments like this, I feel quite regretful. Because this represents the voice of the vast majority, who have not yet understood the intricacies, and have not seen that this is an extremely grand business structure.
Today's market is fluctuating between 70,000 and 72,000, with no trading opportunities. Since everyone has no trading intentions, let's thoroughly uncover the 'blood relationship' behind ADA and Midnight. Let's see whether they are mutually draining each other's resources or engaging in an extremely clever commercial conspiracy.
Many people do not understand why the ADA main chain does not directly integrate privacy functions.
The answer is actually very cruel: if ADA really dares to do that, tomorrow the SEC and various regulatory agencies can have global exchanges delist it completely.
Just look at the fate of Monero. A public chain aiming to carry globally significant funds and survive in the future financial system must have a 'completely transparent, absolutely sunny' underlying main road. It must be an intersection where anyone can take a magnifying glass to audit. If the main chain becomes completely black-boxed, regular forces won't even dare to touch it.
However, traditional enterprises and Wall Street money want to enter the market but are unwilling to disclose their commercial secrets. What to do?
This is the ultimate reason for ADA launching Midnight. They are not competitors at all, but have set up an extremely cunning 'front store and back factory' dual-track system.
ADA is the bright 'front shop' that welcomes the world's attention, providing the most solid decentralized security consensus in the entire industry. Anyone can check, the accounts are clear.
Midnight, on the other hand, is a 'fully enclosed data isolation chamber' behind ADA — that is the back factory.
When a multinational company or large institution comes in to do business, the process is extremely smooth:
They value the underlying security of the ADA mainnet, which will never go down and is extremely decentralized. However, when it comes to their core big client list and the real procurement prices of each supply chain, they throw all this sensitive information into the Midnight 'data isolation chamber' to operate.
#night Using its ZK algorithm is like a 'blind box engine' that only provides results and does not give the underlying orders. When enterprises finish their business, if the compliance department comes to check the accounts, Midnight will only submit a cryptographic 'health report' — stating that all indicators are completely legal and there is no money laundering. However, the enterprise's commercial flow data will not leak a bit to that transparent ADA mainnet.
In this design, no one is draining anyone's blood.
On the contrary, ADA's miners can directly provide packaging services for Midnight, conveniently earning double network profits. This is akin to a police officer on the main road casually taking on the security job of a nearby VIP bank vault; the entire ecosystem's stickiness and security are tightly bound together.
As for the dual-token design often mentioned in Binance Square, many people do not understand how $NIGHT and $DUST are actually divided in terms of responsibilities.
The cost actually consumed in the isolation chamber for running business and paying fees is $DUST.
The most frustrating deadlock for traditional public chains lies here: if you want to work on the chain, you must constantly buy mainnet tokens as fuel on the market. If you happen to encounter chaotic dog coins flying around or network congestion, the fuel costs can multiply by dozens in a day. Who is going to approve this budget that can blow up at any moment?
Midnight operates an extremely clever 'internal blood production' mechanism. Enterprises do not need to check the secondary market daily to buy DUST. They only need to stockpile$NIGHT this core asset.
Holding NIGHT will automatically produce DUST for you continuously, like a self-flowing well.
Therefore, NIGHT is the 'money-printing machine' that has been bought out, while the produced DUST is the true 'consumable' used to pay tolls. No matter how chaotic the transactions on the mainnet outside are or how fuel costs soar, as long as the bottom stock of NIGHT is in hand, the business fuel can always be self-sufficient. This is equivalent to setting up a firewall on their financial statements, completely cutting off the risk of being crazily drained by external currency price fluctuations.
Funds are always smart. When true industry giants start moving to the chain, they need not only the ADA brand that can prove its innocence to the whole world but also the Midnight that can tightly cover their own bottom cards. This ecological position, combining both swords, is currently unique in the entire Web3. Don’t lose your soul because of a few shadowy lines; understanding the underlying logic is key to holding onto the core assets of the next cycle.