Cardano’s Midnight Vision: Hoskinson Defends Midnight as Key Growth Catalyst
Charles Hoskinson, the founder of Cardano, has expressed hope that Midnight will increase the network considerably. He thinks it may increase the size of the DeFi ecosystem tenfold. During a recent livestream, he addressed worries that Cardano’s primary blockchain would be weakened by Midnight. In response, Hoskinson contended that merely improving Cardano’s speed, affordability, and scalability won’t encourage widespread network usage.
Midnight Emerges as Cardano’s Differentiator in DeFi
Hoskinson said it takes more than small technical advancements to compete with networks like Ethereum and Solana. Furthermore, he emphasized that even significant improvements like Leios and Hydra might only provide slight user incentives. These offer notable throughput gains and reduced transaction prices.
He did note, though, that these characteristics by themselves are not enough to persuade consumers to go from well-known ecosystems like Ethereum and Solana to Cardano. According to him, people only switch to a new platform when it provides something radically different. For Cardano, this is where Midnight enters the picture. Programmable privacy, which is mostly lacking in today’s popular DeFi, can be provided by Midnight, a privacy sidechain on Cardano.
Privacy Sidechain Midnight Could Reshape Cardano DeFi
Hoskinson thinks that people won’t completely abandon their current environments. Midnight, on the other hand, permits people to keep engaging with those environments. Additionally, it gives users access to privacy-preserving capabilities that Solana and Ethereum do not have by default. Midnight’s anonymity capacity may help develop a new value proposition for Cardano DeFi, perhaps increasing its worth tenfold.
Interestingly, Cardano remains trailing in DeFi activity despite making major advancements in security and decentralization. The total value locked (TVL) of Cardano is $178.98 million, based on statistics from DeFiLlama. This is a lot less than Ethereum’s and Solana’s respective values of about $70.09 billion and $8.57 billion. It is anticipated that Midnight will increase Cardano’s DeFi activity by up to ten times. Thus, the total value locked (TVL) of the network may reach approximately $1.78 billion.
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[…] example, a contract can access the current block height from the Cardano network and incorporate it into its own logic. The significance lies not in the mathematics, but in the […]