Midnight The Fourth Generation Cryptocurrency & Blockchain  

Midnight, the fourth-generation cryptocurrency, data and metadata protection platform, is considered by experts to be the most complex cryptocurrency built to date, it is a metachain or sidechain build on the third-generation Cardano blockchain it’s going to be a private smart contract and an open source that could be used on any blockchain, once all of this has started, we can say a new fourth generation blockchain has been born. Eran Barak, CEO of Shielded Technologies, the company leading the development of Midnight, recently said in a forum that the three pillars will be:

1- Predictability   

2- Privacy   

3- Composability  

The most striking point for both companies and individuals is privacy, for both on Web2 and especially on Web3, privacy on the blockchain is virtually non-existent. Imagine if you pay for a transaction using a blockchain and pay in cryptocurrency, using a Visa, MasterCard or other card, the moment you touch the PDQ machine, your crypto account address is recorded, anyone can see the amount of crypto with its value held in that wallet, they can also trace all other wallets with their addresses that have had any transactions with each other.  

Now imagine a private clinic or hospital, needs to send a medical report through the blockchain, they can’t do so because anyone can see it, or imagine you need to buy medicine restricted to adults, or to buy liquor, to prove you’re an adult, you must show your ID, passport, or driver’s license, whoever asks for that document only needs to know if you’re an adult, however, by showing some of these documents, they can see your name, place of birth, ID number, and even your address on your driver’s license.  

So, the doctor or hospital wants only interested parties to see your medical reports, if you pay rent for your business or home, you don’t want anyone to know how much you pay, if you send money to your family, you don’t want anyone to know how much you send, if you want to buy liquor, you just want to prove you’re an adult without showing further details and using blockchain technology, anyone, known or unknown, can see everything, it’s open to the public, there are no secrets, contrary to what most people believe today.  

With so many privacy violations, identity theft, scams, certificate forgery, fake property registrations, etc, the solution to this problem came with Midnight, where privacy, security, and asset protection prevail, all of this can be achieved not only with its blockchain but also with its Night token and the renewable resource Dust, which I will explain later, and using the Zero Knowledge Proofs (cryptographic) system that can prove that you are an adult without revealing your name or where you live, etc.  

Now let me explain how this wonderful new technology works, although it is a Cardano sidechain, it can be used on any blockchain, security will be guaranteed by the Cardano blockchain, one of the most secure in the world alongside the Bitcoin blockchain, it has never been hacked, security is guaranteed by using its ADA cryptocurrency staking with more than 3,500 pools, Cardano will soon become the most decentralized altcoin blockchain in the world, it will be the first to create a constitution, one of its priorities is governance, the time will come when most, if not all, decisions are not made by its boards, CEOs, etc., but by everyone involved in the Cardano system.  

Midnight is a composite system where NIGHT, the native and utility token, continually generates DUST, the shielded network resource that powers transactions. This segregation enables metadata protection and promotes sustainable operations.   

There’s no capital expenditure for executing transactions: NIGHT holders can effectively transact on Midnight for free for as long as they hold enough tokens to generate the minimum required DUST.  

Dust complies with the transparency required by governments in compliance with regulations and laws so as not to facilitate crime, cybercrime and scams since it is not transferable once used it disappears like dust and therefore criminals or scammers will not be able to obtain it, contrary to what happens with the Monero cryptocurrency that forms a shield and it can be transferred violating the regulations of many countries that already prohibit it, there is nothing wrong with Monero like everything in life most of the people who use it are honest people looking for privacy in their decentralised finances but criminals and scammers also benefit. So, if you want to obtain a Dust token for free and for life, you can generate it by holding a Night token. But how do you get a Night token? Starting from August 5, 2025, the 24 billion airdrop will be in progress over 3 months and 2 phases. A third phase will be added for those who forgot to claim the tokens during the airdrop.  

Midnight is an innovative sidechain that protects wallet addresses and transaction information with programmable data and metadata protection. This allows developers to choose who can access sensitive data, it also allows developers to easily and securely build applications that comply with regulations and protect their personal and business data.  

Midnight uses zero-knowledge proof (ZKP) technology but specifically uses zero-knowledge snarks (ZKSnarks) to separate the source of an application’s public and private data. This ensures that sensitive data remains on its owners’ systems or devices, while maintaining data security and integrity, allowing for selective data disclosure.  

Cryptocurrencies are no longer a novelty; they are a reality, many developed countries in 2023, legally required all crypto exchanges operating in their respective countries to practice the Know Your Customers (KYC) system for individuals and Know Your Business (KYB) for businesses, and that same year all OECD countries agreed to share data on all crypto users starting in January 2026 if required by a government, others joined this program, some will begin in January 2026, others in 2027, and others in 2028, such as the United Arab Emirates, Portugal and others will cease to be tax havens for crypto investors.  

What does this mean? Well, the world is in a state of turbulence, and governments needs to collect more taxes not only for national security but also for social policies, digital assets like NFTs and cryptocurrencies are a reality, which is why the European Union, with the MICA law, USA, UK and many other countries will soon regulate these digital assets, individuals must pay taxes on their profits, for them sharing data about their crypto addresses and transactions is a danger to personal security, just as companies don’t want to share their data publicly, governments are obligated to protect the data of all their users, and for all of them, the solution lies in the Midnight sidechain.  

As an educational source and not financial advice: everyone and businesses need certainty of their cost to transact and right now it’s not possible to know exactly how much it will cost to pay fees in 4 or more years, Midnight could offer an opportunity to create passive income, as anyone who holds the Night token can generate Dust resource for free for life and whoever needs them do not have to worry if the fees go up or down due that can use the same amount of Dust now, in 4 or more years. The good news is that 100% of Night tokens will be airdropped, so a developer, startup, or company that intends to use the MidNight sidechain will need to purchase Night tokens to generate Dust; otherwise, anyone who holds Night can generate Dust in a wallet and then exchange it for a commission in fiat or crypto, generating a passive income.  

NOTE: AI was not used. All information written here, it’s 100% based on the knowledge and experience of the author h.g.menco.   

We never recommend investments or give financial advice. Doing so it’s at your own risk, and make sure you do your homework before investing.