Charles Hoskinson said Midnight makes blockchain safer and protects essential data while still complying with the rules, thereby increasing adoption among banks and institutional investors.
Hoskinson said he loved the Matrix theme with Neo and Morpheus to show just how much users lack privacy online, and Midnight could be the solution that offers better privacy.
Midnight uses privacy technology to keep user and business data safe
People trust the blockchain because users can track transactions and verify that systems work properly without needing a central authority. However, this transparency comes with a serious privacy issue, as strangers, competitors, and criminals can access transaction records with malicious intent.
The extent of data visibility creates new risks, as companies that pay suppliers in Bitcoin leave behind payment records competitors can use to learn about business relationships, costs, and operations.
Similarly, criminals will always target users holding large amounts of crypto, using their wallet history to make malicious attempts. The Midnight ad showed how the system monitors every online activity, and blockchain isn’t any better since the public ledger records all financial transactions permanently.
The advertisement also pointed to cases that stemmed from information leaks, such as crypto theft, exchange hacks, wallet hacks, and even physical kidnappings and robberies where criminals targeted crypto wallets.
Midnight uses a technology called zero-knowledge proofs, which allow users to transact without sharing all their personal information or leaving an obvious trail. It also uses selective disclosure, where users and companies choose the information they want to share and what they want to keep private.
As a result, a balance between transparency and privacy emerges, favoring banks and institutional investors who must protect customer data, business contracts, payment information, and internal financial records.
While earlier blockchains focused on payments, then smart contracts, then scaling, Midnight takes it further by also focusing on privacy, data protection, and regulatory compliance. What’s more, private smart contracts will allow businesses to run contracts on the blockchain without sharing more details with the public.
The levels of data access through selective disclosure on Midnight also allow regulators to see the information they need, while companies protect business secrets and users safeguard their personal data.
Governments today want transparency and compliance in all business activities, but users and companies crave privacy, so Midnight is the middle child that allows controlled transparency and secrecy.
Hoskinson says privacy technology helps more institutions use crypto
Midnight launched its mainnet on March 30 after months of testing on its beta testnet, making it ready for real users, including companies, banks, and large investors seeking both privacy and compliance.
Before the mainnet launch, Midnight ran the Midnight City Simulation to process zero-knowledge proofs at scale, and the results proved positive. Such preparation will help attract institutional investors accustomed to strict consumer protection and compliance laws.
Midnight’s privacy technology also helps tokenize assets with sensitive information, and banks like Monument have already begun using the infrastructure to tokenize retail deposits.
Hoskinson has always said that blockchain can only reach large institutions if they offer privacy infrastructure, because banks, governments, and financial organizations can’t operate fully transparent, decentralized systems.
The simulation and launch demonstrate how well the network is ready for real-world use, and organizations that were hesitant to adopt blockchain due to privacy risks can now adopt Midnight in their operations.
The Midnight ad proved that a lack of privacy is what’s blocking banks and institutions from adopting blockchain, but with the network’s new features, technology can be safe, usable, and compliant.
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Source: https://www.cryptopolitan.com/hoskinson-praises-midnight-ad/
