Please describe your proposed solution
Midnight is a new data protection L1 blockchain. While it is positioned as the first Cardano partner chain, it has its own consensus and ledger. As such, it has no native capability to send/receive assets or other data structures to/from the Cardano mainnet.
To address this lack of interoperability, Wanchain, with support from Midnight, will deploy decentralised cross-chain bridges connecting the Cardano mainnet and Midnight mainnet. This will allow users to move digital assets like ADA and NIGHT seamlessly between the two networks.
To facilitate cross-chain transactions between Midnight and Cardano, a novel cross-chain mechanism that leverages a Zero Knowledge Proof relayer will be investigated. A basic overview of this kind of mechanism is:
- A user initiates a transaction on the source chain
- A ZKP prover detects the user’s transaction on the source chain
- A ZKP prover computes a proof attesting to the authenticity of the successful completion of the user’s transaction on the source chain
- A ZKP prover transmits this proof to a smart contract on the target chain for verification
- A user receives asset on the destination chain
Should development of this kind of mechanism fail, a Multi-Party Computation (MPC) relayer will serve as a fallback option to ensure that a decentralised bridge between the Cardano mainnet and Midnight mainnet is delivered.