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Cardano Founder Charles Hoskinson recently hailed Midnight Network as the solution to centralized digital identity control. Hoskinson believes Midnight can combat open-source projects, emphasizing it as a haven for opinions without fear of being blacklisted.
Battle between decentralization and centralized control
"This is why Midnight exists. Don't let the vampires in," Hoskinson wrote in an X post.
His comments highlight a clash between two visions in the crypto space: decentralized resistance and centralized control. Hoskinson’s comments were in response to a viral post by Jim Ferguson, founder of Freedom Train International.
The post from Ferguson warns of a "digital surveillance grid" being built through the EU’s push for mandatory digital IDs. Ferguson referenced a recent statement by Spanish Prime Minister Pedro Sánchez at the World Economic Forum (WEF) in Davos, Switzerland.
During the meeting, Sánchez advocated for ending online anonymity on social media by linking all user accounts to the EU’s Digital Identity Wallet (EUDI Wallet).
Ferguson explained that the EU is preparing to abolish digital privacy. He said the EU aims to force every citizen to attach their name, ID and biometric data to their online activity.
Meanwhile, Sánchez's remarks, delivered during the WEF annual meeting, compared anonymous online activity to "walking the streets with a mask" or driving without a license. He argued that it enables misinformation, hate speech, bots and harms democracy.
Sánchez, therefore, proposed that users have a public handle but must verify their real identity behind the scenes as the solution.
Charles Hoskinson positions Midnight as solution
In response, Charles Hoskinson positions Midnight as a defense against such centralized control. Midnight is a privacy-focused sidechain developed by IOG, built on the Cardano ecosystem.
It allows users to interact with decentralized applications (dApps) and store/share sensitive data, without revealing their identity to unauthorized parties. Midnight uses zero-knowledge proofs (ZKPs), a cryptographic method where users can prove something is true.
Unlike public blockchains, Midnight ensures computations and data remain shielded from surveillance.
In essence, Hoskinson is saying Midnight was created precisely to counter threats like the proposal from Sánchez.
In a world where governments mandate real-name linking to digital IDs, Hoskison thinks Midnight is the solution to digital privacy.
His comments come shortly after he revealed that Midnight is approaching its official launch. Hoskinson also disclosed his intention to start a podcast called the Night Shift as early as January 2026.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team