Cardano Founder Charles Hoskinson Critiques Ethereum Privacy as Midnight Prepares AI Testbed
Cardano (ADA) founder Charles Hoskinson argued that Ethereum (ETH) has structural privacy flaws due to its public ledger model. Speaking on the need for personal data confidentiality, Hoskinson proposed Midnight (NIGHT), a privacy-focused network built alongside Cardano, as a solution. He introduced a personal computing setup called a night frame, which uses zero-knowledge proofs, multi-party computation, and trusted execution environments to keep user data sealed while performing computations.
The emphasis on privacy comes as artificial intelligence agents increasingly require personal data to operate effectively. Hoskinson warned that public blockchains expose sensitive user transaction details permanently. To address this, Midnight plans to launch a simulated testing environment called Midnight City within the next few months. The platform currently has about 14,000 beta testers and will allow AI agents to trade and rent strategies across networks such as Solana (SOL), Ethereum, Hyperliquid (HYPE), and Binance (BNB).
Investors should monitor the upcoming launch of Midnight City and broader market sentiment as cryptocurrency prices face downward pressure. Midnight (NIGHT) dropped 19.3% over the past week to trade around $0.03872 USD, down 4.98% today. Meanwhile, Cardano (ADA) traded down 2.08% today at $0.2147 USD after falling 13.1% this week, and Ethereum (ETH) slid 1.67% today to $2,359 USD following a 6.7% weekly decline.
Key points
- Cardano founder Charles Hoskinson criticized Ethereum's public blockchain design for failing to protect user data privacy.
- Hoskinson proposed Midnight (NIGHT), a privacy network using zero-knowledge proofs and secure execution environments to protect personal data.
- Midnight City, a simulated environment for AI agents with 14,000 beta testers, is scheduled to open in the next few months.
- Token prices declined over the past week, with Midnight falling 19.3%, Cardano dropping 13.1%, and Ethereum sliding 6.7%.
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How we writeDisclaimerQuestions and answers
What did Charles Hoskinson say about Ethereum's privacy?
Charles Hoskinson stated that Ethereum's public blockchain reveals too much personal user data, arguing that public ledgers create privacy issues as AI agents proliferate.
What is Midnight City and when does it launch?
Midnight City is a simulated world for AI agents to trade and test strategies across multiple blockchains. It currently has about 14,000 beta testers and is set to become fully operational in the next few months.
How have Midnight, Cardano, and Ethereum tokens performed recently?
All three tokens dropped over the past week, with Midnight declining 19.3%, Cardano falling 13.1%, and Ethereum dropping 6.7%.