How Cardano Is Advancing Its Rollup Strategy With Midnight

Jul. 23, 2023
How Cardano Is Advancing Its Rollup Strategy With Midnight

Cardano, the blockchain platform le­d by Charles Hoskinson, has made significant progress in de­veloping and implementing rollups. The­se Layer 2 scaling solutions offer a promising way to e­nhance the network’s pe­rformance and efficiency.

Charles Hoskinson, the­ CEO of Input Output Global (IOG) and the mastermind behind Cardano, re­cently shared some intriguing update­s about the network’s rollup strategy in re­sponse to a curious Twitter user.

The user asked Hoskinson which project he referred to when he mentioned rollups or a rollup strategy in two YouTube videos this year. In one of them, an AMA session in April, Hoskinson hinted that ZK-rollups would soon be available on Cardano and that there was a “beautiful plan” in the works.

Hoskinson replied to the user that rollups are required for some “sidechain” projects being developed on Cardano. He also said that the rollout is happening on a very aggressive schedule and that Midnight will be the first user of rollups on Cardano.

Midnight: A Privacy Sidechain For Cardano

Last year, IOG introduce­d Midnight as a privacy-oriented blockchain, which functions as a sidechain of Cardano. A side­chain runs parallel to the main chain and has the capability to inte­ract with it through interoperability protocols.

Midnight leverages zero-knowledge cryptography (ZK proofs) and a mix of private and public computation to create a trustless environment that protects sensitive personal and business data while complying with regulations. Some potential use cases for Midnight include financial workflows, healthcare data, and supply chain operations.

Cardano has been working on various Layer 2 solutions, such as sidechains and off-chain solutions (like ZK rollups), to enhance its scalability, security, and functionality.

One of the notable achievements in this regard was the launch of the EVM sidechain on the public testnet in February this year, which enabled the community to deploy dApps, create smart contracts, and move tokens between the testing environment chains.

The EVM sidechain is compatible with Ethereum’s tools and libraries, allowing developers to write Solidity smart contracts, dApps, and ERC20 tokens on Cardano test environments.

Another milestone was the release of a toolkit for building custom sidechains in January this year, which gave developers the flexibility to create blockchains for specific use cases on Cardano.

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Cardano’s rollup strategy will enhance its performance and foster further innovation as it launches smart contracts and decentralized applications on its network.

Kashif is a crypto-journalist with over 4 years of experience in the Cryptoverse. He began his career as a software engineer, but his curiosity towards decentralized technology lured him into the labyrinth of crypto, where he discovered a passion for reporting the latest news and developments in the field.