比特笑

One, Under the Spotlight: Privacy is becoming the biggest necessity of Web3

From the data abuse controversy of AI large models to the ongoing discussion of 'on-chain data exposure,' by 2025-2026, 'data privacy' has become a core topic in the global tech circle. In the traditional blockchain world, 'complete transparency' was once seen as the basis of trust, but more and more users are beginning to question: Must privacy be sacrificed?

Midnight was born against this hot background — it attempts to answer a key question: Is it possible to be both transparent and private?

Two, What is Midnight: Redefining 'Rational Privacy'

As the global regulatory framework for crypto assets (such as MiCA II and various countries' new AML laws) is fully implemented in 2026, the contradiction between 'privacy' and 'compliance' has been pushed to the forefront. Once, privacy protocols were the 'thorn in the side' of regulation; but now, the Midnight Network, with its logic of 'rational privacy', is completely changing this situation.
1. Background: In 2026, why do we need Midnight more than ever?
In the past few weeks, global financial regulators have once again emphasized the traceability of on-chain transactions. However, for institutions and ordinary users, data sovereignty is equally a bottom line. No one wants their business secrets or personal asset details to be publicly scrutinized.

A few days ago, the U.S. government contractor Conduent leaked health records and personal information of over 25 million people, and LexisNexis and TELUS also faced issues, with hackers readily available. AI regulations, like the Colorado AI Act, are tightening, requiring transparency while fiercely protecting privacy. Regular people, businesses, and developers are caught in the middle: to use blockchain, they must reveal all their cards, yet they want to keep their privacy while avoiding crossing regulatory lines. Midnight is designed to address this pain point.
Rational Privacy: Proving the Truth Without Showing Your Underwear
Midnight is Cardano's privacy partner chain, a fourth-generation blockchain, with a core philosophy encapsulated in four words – Rational Privacy. Simply put, you can prove to anyone or any system that 'I meet the criteria', 'the result is correct', 'I have this permission', without exposing any unnecessary personal information. No one forces you to see things in black and white; this is the freedom that blockchain should embody.

Friend, imagine this scenario:

You live in a completely transparent fish tank, where every day you earn money, buy things, and transfer money to someone, and everyone passing by can clearly see through the glass. Someone tells you: 'Don't worry, transparency is a virtue!' Do you want to curse inside: 'Do I have to live stream my little savings to the whole world?'

This is the awkwardness of the blockchain now – all transactions are public and traceable, your 'privacy' is basically equivalent to 'running naked'. Want to do something serious? Sorry, your transaction records, wallet balance, and even who you do business with are all displayed on the chain for everyone to see.

My friend, let me ask you a soul-searching question: would you use your own stocks to buy a bottle of water at the convenience store downstairs?

Definitely not, right? Because stocks are the 'capital' kept for appreciation to marry a wife, not pocket change to be spent.

But strangely, all blockchains are forcing you to do this now. If you want to transfer money on Ethereum, you have to sell a little bit of your ETH for 'gas fees'. It feels like if you want to use WeChat Pay, you have to sell a few shares of Tencent's stock first—using your investment to pay the transaction fees. The more ETH rises, the more painful it is when you pay the fees; is this reasonable? This is not reasonable!