Charles Hoskinson, Cardano (ADA) founder, has explained how the cryptocurrency’s future privacy protocol (Midnight) would work within their ecosystem.
In a recent YouTube interview, he claimed that the planned integration would help establish a confidentiality network of smart contracts. According to him, Midnight aims to resolve the paradoxical issue of having privacy and disclosure of a protocol’s rules simultaneously.
The announcement yielded positive results, evident with a spike in on-chain activity. Data from Santiment on Cardano’s Age Consumed showed a movement of over 107 billion ADA (including old coins) on December 7.
Cardano’s Growth Booster: New Privacy Protocols And A Surge In On-Chain Activity
Below are the critical remarks made by Charles Hoskinson in the interview streamed on Corey Costa’s Crypto Coins YouTube channel.
From a regulatory perspective, you’re not actually allowed to use blockchain systems [for privacy]. Why? There’s [the] Bank Secrecy Act, GDPR [General Data Protection Regulation], you have all these privacy departments.
Anytime you could engage in a regulated business, there’s a privacy requirement because regulated business requires you to give away some personally-definable information, and there’s a privacy law on the other side of it that says you have to keep it a secret.
Hoskinson further added,
The problem is that if you try to do it in a blockchain setting, your private information becomes public to everybody… so it made sense to me to find a way to… create a confidentiality network, so like what Ethereum did to Bitcoin, where Ethereum said ‘we have programmability,’ Midnight does to [Cardano], where instead of having a privacy coin, what you do is you have a confidentiality network, you have smart private contracts.
Cardano’s Midnight targets a general issue—concurrent privacy and disclosure legislation—that most blockchain protocols face. And the result is a surge in on-chain activity, which many experts believe would add more value to the network.
Should You Buy Cardano Now?
Please note ADA has a fixed maximum supply of 45 billion tokens maximum supply. This figure would eventually have an impact on the cryptocurrency’s value in the future when it reaches its max supply. The future value of this coin may depend on its new privacy technology.
Cardano Crypto (ADA), according to CoinMarketCap, traded at a 3.33% loss. Even on its intraday charts, it prints a 0.12% loss. However, it experienced much volatility before grabbing profits. On the bright side, the token’s wallet addresses have increased, signaling a possible spike in demand. Possible catalysts could be the blockchain’s increased push for development. We can only wait to see how this surge affects the overall sentiment.
Featured image from Pixabay and char from TradingView.com