Midnight: A new privacy and data protection protocol on Cardano

25 thg 2, 2023

Protecting personal data has long been debated in the crypto community. The Midnight protocol, powered by Cardano, will create new conditions for online interaction. It can grant access to regulators while maintaining user privacy.

Midnight: A new privacy and data protection protocol on Cardano

With the advent of Web2, it became possible to create social networks where people can freely communicate and share information. But these platforms are owned by centralized companies, which can expose users to restrictions or surveillance, and confidential information and personal data can be "leaked" to the network. Web3 can create an environment without censorship or control over user data. But the implementation of decentralized projects either reveals too much information about users or leads to an overly closed system.

Here's the dilemma: by making payments on the Internet using cryptocurrencies, users can thus remain anonymous by not providing their personal data to third parties. On the other hand, the more anonymous the digital process is, the more negatively the regulatory authorities treat it due to lack of control. And to solve this dilemma, IOG is set to launch a new platform called Midnight.


Midnight is a blockchain that helps protect personal and commercially sensitive data. Such a solution will be fundamentally new in online interaction: users can decide what information they want to disclose.

Midnight will operate as a sidechain on the Cardano blockchain and inherit its security and decentralization.This will significantly expand the usefulness of Cardano, as it will be possible to create an extensive network with secure data.

The platform will enable commercial companies to exchange critical information directly with each other. For example, they can transfer financial data without fear of leaks or disclosing confidential information. And private users will be able to safely share their personal data on the Internet and not be afraid that they will be misused.


Midnight will make it easier for developers to create smart contracts than ever before. In this case, you can use various popular programming languages, starting with Typescript.

Charles Hoskinson, the founder of Cardano, explained the paradox of having a privacy law and a disclosure law at the same time:

"Every time you engage in a regulated business, there’s a privacy requirement because a regulated business requires you to give away some personally identifiable information and there’s a privacy law on the other side that says you have to keep it secret. The problem is, if you try to do that in a blockchain setting, your private information becomes public to everybody."

Midnight solves this problem with several new features. An important component will be private smart contracts to help ensure regulatory compliance. Another feature would be that blockchain relies on zero-knowledge proof. It is a form of encryption and transaction verification that allows one party to prove to another that they know something without revealing the information itself.

To put it very simply, it can be explained as follows:

Imagine a cave where there is one entrance, which is divided into two paths: A and B. These two paths are connected by a closed door with a code phrase. Bob wants to check if Alice knows the code for the door. But Alice wants to keep the code from Bob.

To do this, they make a check: Bob is standing outside the cave, and Alice goes inside and takes one of two paths, and Bob needs to know which one. Next, Bob asks Alice to come back using one of the paths chosen at random. If Alice took path A, and Bob asked to exit using path B, then Alice must open the door using the passphrase. This way, she will prove that she knows it without revealing the phrase itself.


Simply put, a platform can provide access to regulators while maintaining user privacy.

Midnight is currently in development. It is worth noting that the new blockchain will have its own DUST security token, and with the help of anonymous smart contracts, the level of privacy will be transferred to the user's hands. And according to Charles Hoskinson, Midnight will replace existing confidential coins, such as Zcash and Monero.

In conclusion, Midnight is vital to Cardano's global goal of creating secure blockchain technologies. This protocol aims to solve one of the main problems in the crypto community that worries many users. This again proves that the developers remain true to their philosophy and values: making a product for people while preserving their rights and freedoms.

"Midnight – designed for developers, built for humanity."