Charles Hoskinson, the CEO of Input Output Global (IOG), has recently highlighted the features of a new privacy-focused protocol coming to the Cardano ecosystem.
In a new interview on Corey Costa’s Crypto Coins YouTube channel, Cardano creator said the upcoming privacy protocol Midnight aims to create a confidentiality network of smart contracts.
Hoskinson said this is the most challenging mission Cardano developers have embarked on until now. He pointed out that the upcoming protocol aims to proffer a solution to the paradoxical problem of having privacy and disclosure laws concurrently.
Charles Hoskinson noted:
“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.
“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 contracts that are private…
“It’s a really hard product. It’s the hardest product we’ve ever worked on and it makes Cardano look like kid’s play.”