The recognition of cryptocurrency has overshadowed blockchain to the purpose {that a} false impression has been fashioned: blockchain’s sole goal is to facilitate cryptocurrencies. Whereas that is actually one blockchain use case, it has many extra that aren’t being correctly utilised as a result of public nature of mainstream blockchains.
One organisation exploring a few of these use circumstances is the Midnight Basis, an organisation devoted to advancing the event, adoption, and real-world influence of the Midnight community. The Midnight community is designed for confidential good contracts, enabling censorship-resistant but compliant decentralised purposes.
Delving into how the Midnight Basis is unlocking the total potential of blockchain expertise by way of programmable privateness, Fahmi Syed, president at Midnight Basis spoke to Mark Walker, editorial director, The Fintech Instances, at Money20/20 Europe 2025 in Amsterdam.
The lacking piece for mass blockchain adoption
Midnight was initially created as a analysis mission with Enter Output Hong Kong (IOHK), the blockchain infrastructure analysis and engineering firm behind Cardano, and was strongly backed by Charles Hoskinson, IOHK’s founder and one of many authentic CEOs of the Ethereum basis and Ethereum mission.
Regardless of its rising use as a buzzword within the monetary sectors, blockchain’s real-world adoption was but to be seen. The plenty weren’t flooding to make use of the tech and Hoskinson concluded that one main purpose for this was the absence of identification and privateness.
“Every part on the blockchain is immutable and clear,” says Syed. “It’s nice as a result of it offers freedom and removes intermediation, however it does imply the whole lot you do will all the time be on a series.
“What Bitcoin launched to the world was implausible – it showcased decentralised finance, decentralised ledgers and the liberty to share info in a approach that would keep away from fraud, double spending and total improve transparency.
“Sadly, folks have centered an excessive amount of on the crypto facet of issues. We haven’t seen real-world adoption in banking, logistics or many different enterprise use circumstances.”
Privateness’s position in enhancing adoption
Blockchains at this time match into one in every of two classes: public or personal. Non-public blockchains are sometimes created by banks however endure as a result of their siloed nature, which can lead to decrease liquidity and interactions with different banks and blockchains. In the meantime, public blockchains give permissionless entry however lack the power to confirm who’s interacting with the blockchain – consequently, massive enterprises typically steer clear.
“At Midnight, we’re creating the idea of programmable privateness,” says Syed. “Our blockchain is neither public nor personal – we’re in a gray space between each these established ideas.”
Midnight provides customers the power to have each a private and non-private state on the blockchain and dictate who can and can’t see sure info. Exploring a use case the place this selection is beneficial, Syed explains how within the buying and selling sector, both DeFi or central trade buying and selling, the whole lot is seen. Each commerce may be seen and easily transferring collateral can sign the place or intentions of an organization to its competitor.
“What we intention to do at Midnight,” continues Syed, “Is grant customers the power to carry belongings privately. You subject them publically, then commerce and maintain them privately. Customers can then disclose info to counterparts for collateral, borrowing, or leveraging functions.”
Retaining possession over information
Syed explores the variations between a financial institution taking care of your belongings and the Midnight providing. “A financial institution is centralised. The blockchain expertise that Midnight is providing holds information however permits customers to current it to different events.”
He notes that the precise information is rarely on-chain. Midnight permits customers to take information off-chain or on different chains and current it as zero-knowledge proof on the Midnight blockchain. This permits them to retain custody and possession of the info, which they’ll then share with bigger enterprises after they want to.
The important thing to mainstream adoption
Whereas the Midnight community has been labored on for six years, the Midnight Basis was solely launched earlier in 2025. Supported by Shielded Applied sciences and new corporations coming into the equation, the Midnight Basis has recognized identification, logistics and stablecoins to be areas of excessive adoption. Actual-world belongings (RWAs) and stablecoins have emerged as key tendencies and Midnight’s position in facilitating these will open it as much as adoption from massive enterprises.
Syed offers an instance of how Midnight can be utilized by exploring how Coca-Cola may wish to use a stablecoin to maneuver revenues from Mexico again to its headquarters within the US. Utilizing a current-day public blockchain, anybody may see the worth of the cash moved. Nonetheless, utilizing Midnight, Coca-Cola would be capable of present public traits of the transaction whereas holding again the specifics. This implies rivals like Pepsi gained’t be capable of see money stream and determine tendencies in sure areas.
What’s subsequent?
Reflecting on his expertise at Money20/20 Europe 2025, Syed feedback on what he’s most enthusiastic about being on the occasion. “Strolling round, I’ve seen numerous conventional cost rails and I take into consideration how they may unlock their true worth utilizing blockchain. They will transfer in direction of a world which permits them to behave as platforms that permit people to personal their information and belongings.
“What we’re providing at Midnight is a chance to cut back prices by way of the way you deal with information and compliance rules.”
Look ahead to extra in-depth perception as Mark Walker chats to Midnight Basis’s Fahmi Syed
