About
Midnight is a fourth-generation, privacy-focused blockchain developed by Input Output Global (IOG), the team behind Cardano. The protocol is designed to address the "radical transparency" of traditional blockchains, which often acts as a barrier for enterprises and individuals requiring data protection. By introducing the concept of "Rational Privacy," Midnight allows users to selectively disclose information, moving past the binary choice of being entirely public or entirely hidden. This enables the creation of decentralized applications (dApps) that are both privacy-preserving and regulatory-compliant.
The network utilizes a sophisticated dual-token model to separate governance and capital from operational transaction costs. NIGHT serves as the unshielded utility and governance token, while DUST acts as a shielded, non-transferable resource used exclusively to pay for private computation and transaction fees. Interestingly, NIGHT holders automatically generate DUST over time, creating a "token-generates-resource" dynamic that allows developers and users to predict their long-term operational costs without being exposed to the price volatility of the primary utility token.
Technically, Midnight is built using recursive zk-SNARKs (Zero-Knowledge Proofs) and a custom smart contract language called Compact, which is based on TypeScript. This choice of language is intentional, aimed at lowering the barrier for millions of traditional web developers to build zero-knowledge applications without needing to master complex cryptographic primitives. The protocol features a "Dual-State Architecture," allowing sensitive logic to execute in a private environment while using a public state for consensus and final settlement, ensuring that metadata and personal data remain off-chain.
Security for the Midnight network is anchored by a novel consensus protocol called Minotaur, which allows the network to leverage security resources from multiple blockchains, including Cardano's massive pool of Stake Pool Operators (SPOs). As a "partner chain," Midnight does not compete with Cardano but rather extends its functionality, offering a privacy-first layer where complex, metadata-protected transactions can occur. This interoperability is designed to scale across the entire Web3 space, positioning Midnight as a cross-chain privacy infrastructure for Ethereum, Bitcoin, and beyond.
The launch of the NIGHT token followed one of the largest and most inclusive distribution events in crypto history, known as the "Glacier Drop." This multi-phase campaign rewarded holders of various major assets including ADA, BTC, ETH, and SOL to ensure a diverse and decentralized initial stakeholder base. As the network transitions into its decentralized mainnet phases in 2026, the on-chain Treasury and governance mechanisms will empower NIGHT holders to direct the future of the ecosystem, funding projects that range from private healthcare data exchange to confidential institutional voting systems.
