Cardano founder Charles Hoskinson recently shared new insights during an AMA on the potential impact of the upcoming Midnight initiative.
According to Hoskinson, Midnight could become the largest economic event in the Cardano’s history. He outlined a vision where Midnight, combined with Bitcoin and Cardano, creates a “triumvirate” capable of solving deep financial system challenges.
Midnight’s Ambition
Midnight is designed to facilitate cross-chain transactions and DeFi activities by leveraging advanced cryptographic techniques. According to Hoskinson, if users are willing to tolerate high fees and longer transaction finality, they can already perform Taproot-style transactions using SNARKs to move assets between chains, returning with gains or losses.
However, to meet broader adoption goals, Midnight will employ a system of “operators” to manage and bundle transactions efficiently. This operator layer is being built under a project called Fairgate, which acts as the infrastructure stack for secure and fast interoperability.
“You have tools like MPC, multi-signature, and trusted hardware,” Hoskinson explained. “Connect those, and you enable fast transactions with sub-minute latency and low fees, secured long-term by Bitcoin.”
Fairgate, Thundercloud, and the Operator Economy
Meanwhile, the Cardano founder revealed that anyone could become an operator by running a full node or light client with the right software stack.
Fairgate incorporates tech from Blockfrost, Hydra, and emerging efforts like Thundercloud. He noted that the team is exploring this potential fusion of Hydra and the Lightning Network with developer Adam Dean’s team.
Fairgate will also use BitVMX to transition to RISC-V and Bitcoin Script, applying zero-knowledge cryptography for long-term security. With this, the user can choose high speed with lower fees and slightly reduced security or Bitcoin-grade finality for high-value transactions.
“If BlackRock were to move $100 million, they’d likely use the Bitcoin-secured path,” said Hoskinson. “That’s the magic; users are in control.”
Midnight Airdrop and Token Generation Event
Furthermore, Hoskinson touched on the upcoming Midnight airdrop. He noted that Cardano holders will receive the largest distribution of Midnight tokens of any blockchain. Other participating chains include Ethereum, Solana, Bitcoin, and XRP Ledger.
Notably, the Midnight Foundation will organize the upcoming Token Generation Event (TGE). It will kick off a full marketing campaign including tokenomics, infographics, and videos.
Hoskinson noted that the Midnight Foundation will become operational this month and the next following the introduction of its president, Fahmi Syed.
Big Players and Bigger Plans
Meanwhile, Hoskinson also confirmed ongoing conversations between the Cardano Foundation and Franklin Templeton, a global investment firm. “We’ve known their CEO for years,” he said.
He added that while their work may align more with the Foundation’s mission, Cardano will engage them on Midnight. “There’s a lot to discuss,” he said. “Cardano and Midnight, together with Bitcoin, which we call the triumvirate, can solve a lot of financial world challenges.”
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