Cardano founder Charles Hoskinson expressed optimism that Midnight will considerably strengthen the community and broaden the DeFi ecosystem tenfold.
He made this assertion throughout a latest livestream, addressing issues that Midnight may undermine Cardano’s core blockchain. IIn response, Hoskinson argued that merely making Cardano sooner, cheaper, and extra scalable won’t drive mass adoption of the community.
He prompt that competing with networks like Ethereum and Solana would require greater than incremental technological enhancements. Moreover, Hoskinson emphasised that even main upgrades like Leios and Hydra could solely present marginal consumer incentives, comparable to decrease transaction charges or dramatic enhancements in throughput.
Nonetheless, he identified that these options alone won’t be sufficient to persuade customers to go away established ecosystems like Ethereum or Solana and be a part of Cardano.
In his view, customers will solely transfer to a brand new platform if it provides one thing basically totally different. That is the place Midnight comes into Cardano.
Cardano’s privateness sidechain, Midnight, offers programmable privateness, which is essentially absent in mainstream DeFi in the present day.
Strengthen Cardano DeFi 10x in the midst of the evening
Slightly than leaving current ecosystems fully, Hoskinson believes that Midnight permits customers to proceed interacting with them whereas accessing privateness safety options that Ethereum and Solana do not supply natively.
This privateness function of Midnight will assist create a brand new worth proposition for Cardano DeFi, doubtlessly growing it by as much as 10x.
Particularly, whereas Cardano has made nice strides in safety and decentralization, the community nonetheless lags behind in DeFi exercise. In response to DeFiLlama knowledge, Cardano’s complete worth locked (TVL) is $178.98 million. That is considerably decrease than Ethereum and Solana’s roughly $70.09 billion and $8.57 billion, respectively.
With optimism that Midnight may enhance Cardano’s DeFi exercise by as much as 10x, the community’s complete worth locked (TVL) may attain round $1.78 billion. Whereas this quantity is important, it’s going to nonetheless fall in need of the degrees at the moment recorded by Solana and Ethereum.
Tier-1 stablecoin powers DeFi actions on Cardano
In the meantime, Hoskinson predicts that Cardano’s DeFi exercise will achieve momentum subsequent 12 months with the launch of Midnight’s mainnet.
He additionally believes that past midnight, the introduction of tier 1 stablecoins into the Cardano ecosystem may additional speed up DeFi development. Particularly, he confirmed that he’s in ongoing discussions with Ripple about bringing the RLUSD stablecoin to Cardano.
Equally, Midnight Basis just lately revealed that it’s finalizing a partnership to launch a privateness stablecoin on its platform, including one other potential catalyst for DeFi enlargement.
