Cardano Founder Says For the First Time Ever on a Blockchain, We Can Trade Securities Natively

Cardano founder Charles Hoskinson continues to emphasize the importance of the privacy-focused Midnight to the blockchain space.

He shared in his recent podcast that thanks to Midnight, the earlier skepticism in trading securities on-chain has been resolved.

“For the first time ever on a blockchain, we can actually trade securities natively,” he stated, citing Midnight’s creation as an enabler for this.

Privacy Issues and the Role of Cardano Sidechain Midnight

Hoskinson highlighted that to trade securities natively on the blockchain, specific requirements must be met. He mentioned privacy, selective disclosure, and the functionality of handling public and private information in the same stead as key components.

While institutional embrace of blockchain technology has escalated, bringing securities on-chain for native trading has continued to face major roadblocks. One major setback is that public blockchains provide full disclosure, revealing specific details of a transaction, such as sender and receiver addresses.

Notably, this differs from those seen in the traditional market, where exchanges retain specific user data for confidentiality and user protection. 

However, Hoskinson noted that this deficiency in the blockchain space prompted the creation of projects like Midnight. For the uninitiated, the Cardano sidechain employs zero-knowledge proofs (ZKPs) to preserve user privacy.

Midnight allows for selective disclosure for regulatory compliance and rational privacy. According to the Cardano founder, this now encourages investors to trade traditional securities without the need for third parties, provided the jurisdiction embraces algorithmic law.

Remarkably, the Midnight use case extends beyond encouraging on-chain native securities trading. In a recent post, Hoskinson fronted the need for Midnight, as hackers extort adult content site PornHub after stealing the data of its premium members.

Midnight Sustain Market Buzz

Meanwhile, the buzz around the NIGHT token has not subsided, as it continues to outperform major cryptocurrencies. Data from CoinMarketCap shows a 22% increase in the past seven days, the largest in the top 100 crypto market cap ranking.

In addition, its trading volume also continues to impress. It currently ranks as the 10th-largest cryptocurrency by 24-hour trading volume, with $1.56 billion.

NIGHT has also dominated the Cardano ecosystem despite its recent launch. Hoskinson earlier highlighted that the asset’s fully diluted volume (FDV) is larger than that of the other Cardano-native tokens combined.