TLDR
- Hoskinson says Midnight and Zcash are shaping the fourth generation of blockchain.
- Zcash gained 150 percent in 2025 as interest in privacy networks increased.
- Midnight uses Minotaur consensus and a GDPR-ready VM for compliant privacy.
- New US rules in 2025 are creating space for enterprise use of privacy chains.
A new debate has opened in the crypto sector as privacy networks gain fresh momentum. Investors are watching Zcash and Cardano’s Midnight project after sharp market moves and strong support from Cardano founder Charles Hoskinson. His new prediction has widened interest in the next phase of blockchain growth as privacy tech returns to the center of industry talks.
Hoskinson Backs Privacy Chains as New Era Begins
Charles Hoskinson has stated that privacy-focused networks could become the fourth generation of blockchain. He made this remark while speaking about the rise of Zcash and the progress of Midnight, Cardano’s privacy sidechain. Hoskinson said these networks aim to offer better protection for users while staying within new legal rules.
He has been part of the crypto sector since 2010, and his view comes at a time when Zcash has seen sharp gains. Zcash rose about 150 percent in 2025, which is one of its best yearly moves since 2017. The rise has created renewed interest in projects that use zero-knowledge proof systems.
Midnight Develops as a Privacy Chain With Compliance Tools
Midnight was introduced in October 2023 by Input Output Global. The chain is built to offer both privacy and compliance, and the team has called it a fourth-generation blockchain. It uses Minotaur, a multi-resource consensus design shared in a 2022 IOG paper, which processes transactions through several resource types.
The chain also uses the Kachina Virtual Machine. It is built to support privacy while staying aligned with GDPR rules. The system offers user privacy and still allows audits for companies that must follow strict reporting laws. This balance has drawn interest from firms that want privacy tools that do not break compliance needs.
Eran Barak, Midnight’s CEO, is set to speak at the Cardano Summit 2025 in Dubai. He is expected to share new details on technical progress and upcoming partnerships. The event comes as more platform features move toward public release.
Zcash and Midnight Gain Strength in New Regulatory Setting
The renewed growth in privacy networks has come during a shift in US policy. The Clarity Act and Genius Act were passed in mid-2025, and both offer more clear rules for digital assets and stablecoins. Market analysts believe these rules may encourage companies to use privacy chains that meet compliance needs.
Zcash has been one of the early gainers in this cycle. Its zk-SNARK system enables private yet verified transactions, and the design helped build the idea behind Midnight’s hybrid model. Kraken also said in November 2025 that it plans to list Midnight’s token once launched, which added more attention to the project.
Cardano Ecosystem Grows While Midnight Builds Toward Launch
Cardano has continued to expand its ecosystem. In March 2025, the network shared a roadmap that includes using Bitcoin as a smart contract layer to support cross-chain DeFi. This plan seeks to bring more activity and new liquidity to the network.
Platforms such as Fluid Tokens and Indigo Protocol now hold more than 500 million dollars in total value locked, according to DefiLlama. Cardano’s market cap stood near 30 billion dollars in October 2025, showing steady yearly growth as more DeFi tools go live.
Analysts say that the mix of privacy chains, clearer laws and new enterprise tools could shape the next steps for Cardano and Midnight as both look toward wider use.
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