Privacy Chains ZEC & Midnight to Define Next Blockchain Era
Charles Hoskinson, co-founder of Cardano, predicts that privacy chains will drive the next evolution of blockchain technology. Projects like Zcash (ZEC) and Cardano’s Midnight sidechain are attracting investor and developer interest as demand for confidential transactions rises. ZEC’s price surged over 150% last week amid privacy concerns. Launched in October 2023 by IO Global, Midnight balances private transactions with regulatory compliance using a hybrid PoW/PoS consensus (Minotaur) and a GDPR-compliant Kachina Virtual Machine. New rules, such as the Clarity Act and Genius Act, offer clearer guidelines for digital assets and stablecoins. These laws encourage enterprises and institutions to adopt regulated privacy solutions. Meanwhile, the Cardano ecosystem has surpassed $250 million in TVL, paving the way for Midnight’s integration and broader privacy-based DeFi growth.
Bullish
Hoskinson’s endorsement of privacy chains, combined with ZEC’s 150% price surge and regulatory clarity from the Clarity and Genius Acts, points to growing market confidence. Enterprises seeking compliant privacy solutions are likely to adopt Midnight, boosting ADA and related DeFi activity. Historically, clearer regulations and high-profile support have driven asset rallies—similar to when Monero gained traction after privacy-focused legislation. In the short term, demand and speculation could lift ZEC and ADA prices. Long term, widespread institutional use of regulated privacy chains may underpin sustained growth in TVL and token value.