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Cardano is gearing up for an influx of users following the release of the Midnight Nightpaper, which introduces a new privacy-focused chain.
Notably, the Midnight team released the much-awaited Midnight whitepaper, dubbed the “Nightpaper” yesterday. One of the most notable revelations in the Nightpaper is the upcoming launch of the NIGHT token, which will serve as a Cardano native asset (CNA).
NIGHT Token Utility
As detailed in the Nightpaper, the NIGHT token plays a central role in Midnight’s ecosystem, launching initially as a native asset on Cardano. Unlike most networks where a single token is used for both transactions and rewards, Midnight employs a dual-token system.
NIGHT serves as the governance token and is unshielded, providing transparency for network participants. It also provides rewards for block producers and supports consensus participation on the network. In addition to its fixed supply, the token will be deflationary.
Paired with NIGHT is a second token, DUST, which acts as the transaction resource on the network. Unlike traditional gas tokens, DUST is shielded, which means that while it enables transaction processing, it conceals user data.
This is essential for Midnight’s privacy-focused applications, especially in regulated industries like finance, where both transparency and privacy are needed. DUST also decays over time, as its utility focuses more as an energy-like resource rather than a store of value.
Cardano Community Reactions
The release of the Nightpaper has triggered bullish reactions within the Cardano ecosystem, with certain community experts predicting a surge in network activity.
Philip DiSarro, the CEO of Anastasia Labs, stated that the launch of NIGHT could potentially bring in more users than any dApp previously deployed on Cardano.
You guys have absolutely no idea how many people this will onboard onto Cardano.
Night is launching as a Cardano native token. This easily has the potential to drive more traffic to the chain than the combined volume of every single dApp that has launched since Alonzo. https://t.co/eqnv1XtfLQ
— phil (@phil_uplc) September 18, 2024
He emphasized that this token, along with Midnight’s privacy-focused infrastructure, could drive more volume to Cardano than all the projects introduced since the network welcomed the Alonzo hard fork.
More from the Nightpaper
Beyond the token utility, the Nightpaper also reveals several important aspects of the Midnight blockchain’s design. Midnight introduces a next-generation architecture focused on safeguarding both user and business metadata.
It employs zero-knowledge proofs (ZK proofs) to allow organizations to protect sensitive information while still participating in decentralized ecosystems. This ensures that users and businesses can verify transactions without revealing confidential data.
For developers, Midnight simplifies blockchain development by utilizing TypeScript, one of the most popular programming languages. This will help to reduce the complexity of creating smart contracts and integrating blockchain systems.
Additionally, Midnight supports both layer 1 and layer 2 chains, making it versatile enough to work with existing systems and other blockchain platforms, such as Ethereum and Cardano.
This interoperability is important for Midnight’s appeal, as it enables businesses to leverage their existing infrastructure while gaining the benefits of data protection and scalability.
Midnight Roadmap
The Midnight Nightpaper also sets out the project’s roadmap. Per the roadmap, the Midnight project is expected to move from the Devnet phase to the Testnet phase. After the successful Testnet, the team will launch the Mainnet.
Notably, Midnight entered its Devnet phase in November 2023, an essential step in its development. This early testing stage allows developers to explore the platform’s capabilities, particularly its privacy features.
The project selected over 100 developers, referred to as “Midnight Pioneers,” to participate in the Devnet and build privacy-oriented applications. These applications will be crucial in proving Midnight’s ability to handle sensitive data while maintaining compliance with regulatory frameworks.
The Devnet launch also highlighted Midnight’s role as a sidechain to Cardano, which means it benefits from Cardano’s security and infrastructure while offering a distinct privacy framework.