The transparency of the blockchain has been regarded as an advantage of blockchain in the past, but after being taught by MEV, it was discovered that sometimes excessive transparency is not a good thing.
Every swap you make, every interaction, all the data is hanging on the chain. Those monitoring bots are watching your trading paths; as soon as one broadcasts, the trap is already set behind. In the past, everyone said this was the fairness of Web3, but to be honest, if we want more real money to enter the market, this characteristic may deter large funds.
Recently, I studied the data in my hands regarding @MidnightNetwork . To be honest, some of its design ideas are quite pragmatic.
It hasn't taken the extreme route of 'complete invisibility', but instead aims to solve the problem of 'selective disclosure'.
For example, its ZSwap logic. In traditional DEX trading, your input, output, and balance are all transparent. But in Midnight, transaction data is generated locally, and only zero-knowledge proofs are verified on-chain. In simple terms, the whole network only knows 'this transaction is valid', but specific amounts, who exchanged, and how much is left are locked locally. This prevents those arbitrage bots relying on on-chain data from taking action. All of this is integrated into the Kachina protocol.$NIGHT
#night In its architecture, it uses Partner Chain. I became convinced of this from my doubts because it doesn’t require you to perform 'mass asset migration'. You continue to run your main business on Ethereum or Cardano, and when you encounter sensitive operations, such as payroll, large transactions, or bidding, you can then invoke Midnight's privacy module. Once the job is done, the results are returned. This concept of 'privacy as a service' is much more convenient than making you move the entire ecosystem.
There is another small detail that is quite critical: compliance.
Many privacy projects fail by going against regulations. Midnight operates on 'on-demand disclosure'. You can keep secrets from competitors, but when facing audits or regulations, you can prove your innocence through ZK, such as proving the legality of fund sources without revealing specific transactions.
This design of 'hide what should be hidden and reveal what should be revealed' is the premise for institutional funds to dare to enter the market. After all, no one is willing to place billions in a completely un-auditable black box.$RIVER