I just read a research report on RWA and discovered an extremely contradictory deadlock: if you cast a commercial building into an NFT, the market requires its underlying property information to be 100% "open and transparent" to prevent fraud; but the wealthy individuals who buy fragmented income rights (FT) of this building need 100% "absolute privacy".
This is simply impossible on Ethereum. Both ERC-721 and ERC-20 are fully public on the network, which makes traditional old money hesitant to put core assets on-chain.
However, after studying the underlying white paper of @MidnightNetwork , I found its most terrifying killer feature during the mainnet phase: it natively supports the token's "dual personality" (seamless folding of public and private states) in a smart contract.
【Investment Research Breakdown】
To explain the white paper in simple terms: in the architecture of Midnight, you can define a token's "non-fungible metadata" (such as the compliance audit report of this building, physical coordinates) as a shieldless (public) state, allowing all network nodes to verify at any time, establishing a foundation of trust.
At the same time, you can define the token's "fungible liquidity attributes" (who holds it, how much is held, daily dividend flow) as a shielded (private) state, tightly sealed in the user's local device using ZK (zero-knowledge proof).
【Valuation and Risk Quantification】
This underlying capability that physically separates "asset verification" from "holder profiling" is the only key to unlocking the $16 trillion RWA market predicted by Citibank. It allows institutions to comply with public disclosure while maintaining business confidentiality. The influx of such large B-end capital will be the strongest support for the underlying valuation of $NIGHT .
Cold water warning: However, the hardcore risk lies in "State Contention". The frequent handling of public data and local ZK privacy state cross-calls within the same contract can easily lead to read-write conflicts in the underlying ledger. Whether this dual architecture can withstand high concurrency stress testing is an engineering reef that must be crossed before its ecosystem can explode.
Freelance Writer: Moon