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Cardano founder Charles Hoskinson recently hailed Midnight Network as the solution for centralized digital identity control. Hoskinson believes that Midnight can fight open-source projects, emphasizing it as a haven for opinions without fear of being blacklisted.
Battle between decentralization and centralized control
“That’s why Midnight exists. Do not let the vampires,” Hoskinson he wrote in an X position.
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.
Ferguson’s post warns of a “digital surveillance grid” being built through the EU’s push for mandatory digital ID. Ferguson referred to a recent statement by Spanish Prime Minister Pedro Sánchez at the World Economic Forum (WEF) in Davos, Switzerland.
During the meeting, Sánchez advocated ending online anonymity on social media by linking all user accounts to the EU 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 add their name, ID and biometric data to their online activity.
Meanwhile, Sánchez’s remarks, made during the WEF’s annual meeting, compared anonymous online activity to “walking the streets with a mask” or driving without a license. He argued that it allows disinformation, hate speech, bots and damage democracy.
Sánchez, therefore, proposed that users have a public handle, but they have to verify their true identity behind the scenes as the solution.
Charles Hoskinson posits Midnight as a 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.
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Unlike public blockchains, Midnight ensures that calculations and data remain protected from surveillance.
In essence, Hoskinson says Midnight was created precisely to counter threats like Sánchez’s proposal.
In a world where governments are enforcing a real-name link to digital IDs, Hoskison thinks Midnight is the solution for digital privacy.
His comments come shortly after he revealed that Midnight is getting closer to its official launch. Hoskinson also disclosed his intention to start a podcast called Night Shift in January 2026.
