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- Charles Hoskinson discussed difficulties in integrating real-world apps onto blockchain platforms.
- Midnight aims to preserve decentralization, creating a seamless, interconnected blockchain ecosystem.
- Hoskinson highlighted the development of Decentralized Identifiers, private smart contracts, and MRC as essential technologies for Midnight.
Cardano founder Charles Hoskinson recently revealed the origins and guiding principles behind Midnight, a new privacy-focused blockchain platform, during a podcast interview.
The host inquired about Midnight’s core principles, seeking to understand the challenges and motivations behind its creation.
Hoskinson explained that the blockchain industry has always sought to integrate real-world applications and assets, including real estate, securities, intellectual property, gold, and decentralized autonomous organizations onto blockchain platforms.
However, traditional blockchains are inherently public and transparent, making all transactions visible. While this transparency ensures immutability and auditability, it poses challenges for businesses that need to protect proprietary information.
He noted that every business requires both public and private aspects to function effectively. For example, companies like McDonald’s keep certain operational details confidential, such as cash register contents or employee work hours.
Hoskinson emphasized the need for a system that preserves privacy and freedom of association, commerce, and expression while maintaining the integrity and ethics of a blockchain.
Traditionally, the blockchain industry has kept private information off-chain, resulting in a hybrid system dependent on centralized gatekeepers. This undermines the fundamental principle of decentralization.
Hoskinson stressed the importance of a truly decentralized system where all components, including privacy-preserving aspects, computation, storage, and audit processes, are decentralized.
The journey towards developing Midnight began in 2016, but technological limitations initially hindered progress. Over time, through extensive research and careful planning, the team developed the sophisticated technology stack that Midnight now represents.
The host further inquired whether any specific technological innovations or research triggered the realization that a transparent and shielded blockchain was possible. Hoskinson outlined three core technologies:
- Decentralized Identifiers (DIDs): These enable secure identity linking with transactions or wallets, facilitating a privacy-preserving disclosure regime.
- Private Smart Contracts: Kachina technology allows developers to write smart contracts that segregate public and private data, essential for managing real-world assets on the blockchain.
- Multi-Resource Consensus (MRC): MRC combines different consensus algorithms, such as proof-of-work and proof-of-stake, fostering interoperability and allowing various blockchains to interact seamlessly with Midnight.
These innovations allow Midnight to address regulatory requirements while maintaining decentralization, creating a seamless, interconnected blockchain ecosystem.
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