Privacy Concerns in the Digital Age
Charles Hoskinson, the founder of Cardano, recently made some interesting comments about why the network’s privacy-focused sidechain, Midnight, was created. His remarks came in response to discussions about the European Union potentially moving toward ending online anonymity. I think this touches on something many people have been worrying about lately – the balance between security and privacy in our increasingly digital world.
Hoskinson was specifically responding to a viral post from Jim Ferguson, a political commentator who criticized Spanish Prime Minister Pedro Sánchez’s comments at the 2025 World Economic Forum. Ferguson had warned that these developments could lead to what he called a “digital surveillance grid” where every online action would be tied to an individual’s identity. That’s a pretty stark vision of the future, and it’s understandable why privacy advocates would be concerned.
Midnight as a Countermeasure
What’s interesting is how Hoskinson positioned Midnight as a direct response to these potential threats. Midnight is essentially a privacy-focused sidechain built on the Cardano blockchain, designed to let people engage online while still maintaining control over their personal information. The concept is that users can transact privately and choose what information to disclose, only complying with regulators when absolutely necessary.
Hoskinson framed this as Cardano’s answer to growing worries that governments might impose mandatory identity verification, biometric tracking, or comprehensive monitoring of all online activities. He used some pretty strong language too, telling users to “not let the vampires in” and encouraging them to adopt Midnight as a way to protect their privacy from unauthorized access by institutions.
Development Progress and Token Distribution
Midnight has been in development since November 2022, going through various phases including DevNet and token distribution. The first phase of NIGHT token distribution, called Glacier Drop, happened back in August. During that event, eligible users across eight different blockchains – including Cardano, Bitcoin, Ethereum, and XRP Ledger – were able to claim a share of the 24 billion NIGHT supply.
Right now, the second phase called Scavenger Mine is underway. This allows users to earn unclaimed tokens from the Glacier Drop by completing computational tasks. It’s an interesting approach to distribution that seems to reward active participation in the network.
Looking Ahead to Mainnet Launch
Many in the crypto community are looking forward to the upcoming Midnight Summit scheduled for November 17–19. There’s a lot of anticipation that the team will reveal the final roadmap for the project’s mainnet launch during this event. Some people are optimistic that the privacy sidechain could actually launch later this year, which would be a significant milestone for the Cardano ecosystem.
What strikes me about this whole situation is how it reflects broader conversations happening across the tech world. On one hand, there are legitimate concerns about security and preventing illegal activities online. But on the other hand, there’s this fundamental question about how much privacy we’re willing to sacrifice for that security. Midnight seems to be positioning itself as a middle ground – offering privacy while still allowing for compliance when necessary.
I’m curious to see how this develops, especially as governments around the world continue to grapple with these issues. The tension between privacy and regulation isn’t going away anytime soon, and projects like Midnight might offer some interesting solutions.
