Cardano founder Charles Hoskinson has highlighted the fundamental purpose behind the network’s privacy-focused sidechain, Midnight.
In a recent commentary, Hoskinson responded to claims that the European Union aims to end online anonymity.
Specifically, his comments came in response to a viral post from political commentator and Freedom Train International founder Jim Ferguson, who criticized comments made by Spanish Prime Minister Pedro Sánchez at the 2025 World Economic Forum (WEF).
Notably, Sánchez was advocating for an EU-wide policy requiring all online accounts to be linked to a government-issued digital ID wallet, framing online anonymity as a threat to security.
Criticizing the proposal, Ferguson argued that the EU aims to eliminate digital privacy by requiring residents to link their names and biometric data to all online activity. He emphasized that the initiative is less about accountability and more about total traceability.
As a result, Ferguson warned that it could create a “digital surveillance grid” in which every online action is tied to an individual’s identity.
Why Midnight Exists
Interestingly, Hoskinson positioned Midnight as a direct countermeasure to the potential threat to traceability. Notably, Midnight is a privacy-focused sidechain on the Cardano blockchain. It aims to allow people to engage online while maintaining control over their personal information and identity.
Through Midnight, users can transact privately, maintain selective disclosure, and comply with regulators only when necessary. Hoskinson frames Midnight as Cardano’s response to growing concerns that governments may impose mandatory identity verification, biometric tracking, or comprehensive monitoring of all online activity.
He cautioned users to “not let the vampires in,” encouraging them to adopt Midnight as a means to protect their privacy and prevent unauthorized access by institutions or other entities.
This is why Midnight exists. Don't let the vampires in https://t.co/7yvYth2exO
— Charles Hoskinson (@IOHK_Charles) November 13, 2025
Upcoming Launch
Since its introduction in November 2022, Midnight has undergone various developmental phases, including DevNet and token distribution.
The first phase of Midnight (NIGHT) token distribution, dubbed Glacier Drop, took place in August. During the event, eligible beneficiaries across eight blockchains, including Cardano, Bitcoin, Ethereum, and XRP Ledger, were allowed to claim a share of the 24 billion NIGHT supply.
The second phase, known as Scavenger Mine, is currently underway, allowing users to earn unclaimed tokens from the Glacier Drop by completing computational tasks.
Currently, crypto enthusiasts are eagerly anticipating the Midnight Summit, scheduled for November 17–19, where many expect the team to reveal the final roadmap for the project’s mainnet launch. There’s optimism that the privacy sidechain could launch later this year.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
