Cardano Expert Addresses FUD, Dispels Concerns About Midnight Sidechain

The Charles Hoskinson-led blockchain project Cardano has remained subject to persistent panic calls and messages of fear, uncertainty, and doubt (FUD). Recent apprehensions have predominantly revolved around the novel Midnight project, which focuses on privacy-oriented sidechains.

This development has sparked significant intrigue within the crypto community. Despite Cardano’s founder, Charles Hoskinson, providing insights into Midnight’s potential impact on the industry earlier this month, some individuals continue to express concerns about certain key details.

Specifically, questions have surfaced regarding the launch of Midnight’s native coin, DUST, and the identity of partners collaborating with Input Output Global (IOG) to ensure the sidechain’s compliance with legal regulations.

Meanwhile, Dan Gambardello, a well-known Cardano enthusiast, has taken it upon himself to address the network’s concerns comprehensively. In a recent post on the X platform (formerly Twitter), Gambardello responded by asserting that the concerns surrounding Cardano and the Midnight project have been somewhat exaggerated. He underscored that these concerns primarily arise from overly scrutinizing or insufficiently examining the situation, urging the community to adopt a more nuanced perspective.

I’m about to address the Cardano / Midnight concerns.

By breaking it down with straightforward data, it’ll be evident that the concerns are very inflated. While I rarely reference Charles Hoskinson, a few of his remarks offer a grounded view on the topic, as there is not a ton…

— Dan Gambardello (@cryptorecruitr) October 24, 2023

Furthermore, Gambardello pointed out that the Midnight project is not a sudden or impulsive endeavor to replace Cardano. He cited that Hoskinson has described Midnight as a meticulously crafted project that has been in development for over four years.

Significantly, this project came into being as a result of IOHK’s exploration of both proof-of-work and proof-of-stake mechanisms. Gambardello further clarified that the Midnight project’s purpose is not to outshine Cardano but to complement it by serving as a sidechain. Midnight introduces novel capabilities to the Cardano ecosystem, including implementing private smart contracts written in TypeScript.

Moreover, Gambardello emphasized that Midnight is not just a peripheral side project. Instead, it enhances Cardano’s potential, fortifying its network effect and technological capabilities. Besides, he noted that Hoskinson and the Cardano team had planned a “glacier drop” of the DUST token to ensure that ADA holders and other participants would benefit, underscoring the commitment to ADA holders’ interests.

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