In November 2022, Input Output Global (IOG) announced Midnight, a data protection-based sidechain solution for Cardano. One of the key features of Cardano's architecture is the ability to deploy sidechains, which are essentially separate blockchains that can interact with the main Cardano chain. In this article, we will explore Midnight and understand what the benefits for users and developers will be.
 
What is a sidechain?
Firstly, let us understand what sidechains are and why they are important. Sidechains are separate blockchains that are connected to the main blockchain, enabling users to perform transactions and execute smart contracts that are not possible on the main chain due to scalability or functionality limitations. Sidechains can be designed to serve a specific purpose or to provide a specific service, such as private transactions, interoperability with other blockchains, or enhanced privacy and security.
 
How will Midnight help users?
Midnight is a Cardano sidechain solution that is designed to enable efficient, secure, and cost-effective smart contract execution on Cardano. The main purpose of this sidechain is to safeguard important commercial and personal data. In most of the Web2-based platforms, users do not have the authority and control over their own personal data. While keeping the visibility of the transactions on blockchain, Midnight will allow users to have autonomy and control over their own personal data.
 
How can developers benefit from Midnight?
Midnight is designed to address some of the scalability and functionality limitations of the Cardano main chain, enabling developers to build and deploy complex smart contracts that are not possible on the main chain. Midnight is being built with the aim of making smart contract development more accessible and convenient for developers. It will be designed to support a range of widely used programming languages, including Typescript, enabling developers to write smart contracts using the language they are most comfortable with. This will simplify the development process, making it easier and more efficient to create smart contracts on the Cardano network. Through the utilization of zero-knowledge cryptography and a unique blend of private and public computation techniques, the platform will establish a trustless ecosystem that guarantees the security and confidentiality of sensitive personal and commercial data.
 
Building decentralized Applications (dApps) in an easier way will allow the onboarding of a new wave of users at a fast pace. DApps are software applications that are built on top of a blockchain and are designed to provide decentralized services, such as peer-to-peer lending, decentralized exchanges, or social media platforms. DApps are often built using smart contracts, which are self-executing agreements that run on the blockchain.
 
With Midnight, developers can leverage the power of smart contracts to build complex dApps that are efficient, secure, and cost-effective. The Midnight sidechain also supports the issuance and management of custom tokens, which can be used to represent assets, currencies, or other types of value on the Cardano network.
 
Future is interoperable
Another key advantage of Midnight is that it is designed to be interoperable with other blockchains, enabling developers to build DApps that can interact with other blockchain ecosystems. This interoperability is achieved through the use of sidechain bridges, which are software components that enable the transfer of data and assets between different blockchains. With sidechain bridges, developers can build dApps that can leverage the strengths of multiple blockchain ecosystems, providing users with greater flexibility and choice.
 
Conclusion
Midnight is a Cardano sidechain solution that is designed to enable efficient, secure, and cost-effective smart contract execution on the Cardano network. Midnight enables developers to build complex DApps, but with improved efficiency and scalability. With interoperability through sidechain bridges, developers can build DApps that can interact with other blockchain ecosystems, providing users with greater flexibility and choice. As Cardano continues to evolve and mature, sidechains like Midnight will play an increasingly important role in the growth and adoption of the Cardano ecosystem.
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#cardano #sidechain

What are Sidechains?
At its essence, a sidechain is a parallel blockchain that functions autonomously from the main blockchain (often called the main chain). Usually, this connection is facilitated by a two-way bridge, allowing for the smooth transfer of digital assets or tokens between the main chain and the sidechain.
How Do Sidechains Work?
The defining feature of sidechains lies in their autonomy. In contrast to the main chain, sidechains possess the flexibility to adopt unique consensus algorithms and customize block parameters according to their specific objectives. This autonomy empowers them to process transactions efficiently, providing benefits such as quicker confirmation times and reduced fees.
Consensus algorithms on sidechains can vary, encompassing Proof-of-Authority to Delegated Proof-of-Stake. Validators within the sidechain network play a pivotal role in verifying transactions, generating blocks, and ensuring the overall security of the chain.
Furthermore, sidechains often deviate from the main chain in terms of block parameters. While the main blockchain enforces limits on block times and sizes, sidechains can adjust these parameters to achieve higher throughput. However, this flexibility comes with trade-offs, as more permissive block parameters may compromise decentralization by relying on a smaller number of powerful nodes.
#webgtr #Launchpool #sol #sidechain #BTC

The founder of #Cardano , Charles Hoskinson, expressed great joy and pride in the fact that the public test network for Cardano’s #sidechain , known as Midnight, is now active.
Midnight Testnet is Officially Launched
The Midnight team announced the launch of this test network on Tuesday, while also inviting blockchain developers from around the world to get involved in its development. Midnight is primarily aimed at organizations and developers who require #blockchain transparency but also need to protect sensitive data and maintain a balance between privacy and data utilization.
A Safe and Reliable Environment for Development
The Midnight team offers developers an environment that faithfully simulates live network conditions. This means they can work on this test network with confidence, without the concern of frequent system resets, made possible by improvements to the code base. This step is crucial as the Midnight team moves closer to launching the mainnet.
Charles Hoskinson Expresses Pride and Support
Cardano founder Charles Hoskinson ( #charleshoskinson ) did not hide his excitement over the launch of the Midnight Testnet. He acknowledged that while there are still many challenges ahead for Cardano, this step is exceptionally important and deserves significant attention. Hoskinson even added, "It’s worth sending a little love their way," expressing his gratitude to the team.
Developing Applications on Midnight
Midnight comes with programmable credentials that allow developers to choose which data will be shared on-chain and which will remain confidential. The Compact programming language, based on Typescript, is designed so that even developers with less blockchain experience can easily create smart contracts.
Community Engagement and Developer Tools
Since the launch of the devnet, the Midnight team has created several opportunities for feedback and community engagement, such as community calls and ticket sales on Discord. Future hackathons will help developers better utilize Midnight’s features. To successfully develop on Midnight, developers will need a suitable environment like macOS, Linux, or Windows WSL, as well as the necessary tools to run the node and other network components.

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

In March 2023, developer Domo introduced the BRC-20 standard using the Ordinals protocol and Inscriptions, allowing users to issue and trade tokens on the Bitcoin network, similar to Ethereum's ERC-20 standard. The issuance of new assets created significant wealth opportunities, attracting the attention of many developers and venture capitalists to the Bitcoin ecosystem.With the rise of the Ordinals protocol and the BRC-20 standard, user-friendly asset management tools and trading markets became essential for participants. Unisat is a browser-based wallet focused on the Bitcoin blockchain, specifically on the Ordinals and BRC-20 standards. Leveraging its first-mover advantage, Unisat has captured a significant market share.

What is Fractal Bitcoin?
Fractal Bitcoin improves transaction processing capacity and speed by recursively creating infinite expansion layers on the BTC main chain using the BTC core code, while maintaining full compatibility with the existing Bitcoin ecosystem. Fractal creates multiple expansion layers on top of the BTC main chain, forming a tree-like recursive structure. This structure allows each layer to further expand in a "forking pattern," increasing the network's parallel processing capacity. Fractal possesses the following 6 characteristics:g capacity and speed by recursively creating infinite expansion layers on the BTC main chain using the BTC core code, while maintaining full compatibility with the existing Bitcoin ecosystem. Fractal creates multiple expansion layers on top of the BTC main chain, forming a tree-like recursive structure. This structure allows each layer to further expand in a "forking pattern," increasing the network's parallel processing capacity. Fractal possesses the following 6 characteristics:
Fast Transaction Speed: The block confirmation time on the Fractal network is approximately 30 seconds, and its transaction processing capacity is 20 times that of the BTC main chain.Native Compatibility: Fractal Bitcoin is developed based on the BTC core code, ensuring full compatibility with existing Bitcoin wallets, tools, and mining equipment.Dynamic Adjustment: The recursive system based on the BTC main chain can automatically adjust the number of expansion layers according to network congestion.Security and Traceability: All transactions conducted on the Fractal network can ultimately be traced back to the Bitcoin main chain.Cadence Mining: Every three blocks constitute a cycle, with two mined in a permissionless manner (anyone with suitable hardware can participate), and one mined through merged mining (targeted at BTC miners), balancing decentralization and security.Reapplication of OP_CAT: The "purified" OP_CAT is applied to enhance BTC's scripting capabilities.

Commentary on Fractal
Bob Bodily, CEO of Bioniq, shared his views on Fractal, summarized as follows:
Fractal Bitcoin is a Bitcoin sidechain: This is because it has its own miners and nodes, its own token, its own proof of work, and is completely separate from BTC. Comparing it to other BTC sidechains, Fractal Bitcoin combines the advantages of multiple BTC sidechains.Limited Smart Contracts: Fractal Bitcoin does not add new opcodes to enhance smart contract functionality, nor does it add a virtual machine. Its method is to re-enable OP_CAT to add smart contract-like features.Lack of Innovation in Bitcoin Bridges: The official documentation mentions MPC-based bridging, which essentially relies on the same trust assumptions as multi-signature.
In response, Unisat Founder and CEO Lorenzo commented that Fractal is making rapid progress in implementing smart contracts and cross-chain bridges. In terms of smart contracts, Fractal introduced OP_CAT during the testnet reset and plans to activate it on the mainnet starting September 1. This is the first step in enhancing Bitcoin's scripting capabilities with the support of the Unisat and sCrypt teams. Developers can explore potential programming capabilities with OP_CAT enabled on GitHub. Regarding cross-chain bridges, 3-5 methods for transferring assets from the Bitcoin mainnet to Fractal are under development, including both traditional and innovative approaches.
Sats and Pizza Surge
There has been debate within the community regarding the technology of Fractal Bitcoin. However, the secondary market seems optimistic about Fractal Bitcoin.
As the Fractal Bitcoin testnet progresses and the announcement of the expected mainnet activation on September 1, related BRC-20 tokens ORDI and PIZZA have seen significant increases. Additionally, SATS has surpassed the previous BRC-20 leader ORDI in market capitalization.

Note:
SATS will be used as the transaction fee on Fractal Bitcoin.
PIZZA is a MEME token airdropped for Unisat users.

#btcecosystem #sidechain #BinanceLabsInvestment #BRC20DEX