Cardano is teaming up with major tech players, including Google and the Linux Foundation, to work on a new privacy-focused project called Nightstream. According to Cardano founder Charles Hoskinson, this initiative also involves several of the world’s top 10 companies. The goal is to improve privacy and security in blockchain technology using advanced cryptography.

Nightstream is building on lattice-based cryptography, a powerful and secure method that could be future-proof against threats like quantum computing. This technology is being integrated into a system that will eventually power Midnight, Cardano’s privacy-focused sidechain. Since launching last year, Midnight has attracted global developer interest and collaboration.

Right now, Midnight uses two main cryptographic systems: PLONK and Halo 2. PLONK handles zero-knowledge proofs, which allow users to prove something is true without revealing details. Halo 2 helps scale these operations efficiently. While this provides strong privacy today, Cardano is already working on upgrading the system to support more advanced and flexible cryptographic tools.

Hoskinson didn’t go into detail about what roles Google, the Linux Foundation, or other large partners are playing in the Nightstream project. But both organizations are known for leading work in post-quantum cryptography — a growing concern in the blockchain world as quantum computers could eventually break current encryption methods.

Hoskinson also had strong words for Ethereum’s approach to privacy and scaling. He criticized Ethereum’s use of zero-knowledge (ZK) tech, saying it was introduced just to help the network scale, not to protect user freedoms like privacy or free expression. While Ethereum has added rollups and recursion to improve scalability, it still relies on hash-based cryptography. Hoskinson believes this limits Ethereum’s potential because it lacks the advanced algebraic capabilities needed for more complex features.

In contrast, Cardano’s focus on lattice-based cryptography enables broader functionality. It can do everything Ethereum does, but it’s also designed to work with AI hardware. This opens the door for future integration with artificial intelligence technologies from companies like Nvidia, AMD, and Microsoft — something Hoskinson claims Ethereum can’t match.

He emphasized that even though Ethereum is a large platform, it doesn’t have the same backing or future prospects as companies driving the AI revolution. He doubts major tech firms will spend billions building custom chips just to support Ethereum’s current cryptographic methods.

Looking beyond Cardano, Hoskinson shared his belief that Bitcoin could reach $250,000, thanks to growing interest from institutions and governments. He pointed out that decentralized finance (DeFi) on Bitcoin — especially yield-generating products that don’t require custody — could boost adoption across the crypto space and benefit platforms like Cardano.

As of now, Bitcoin is trading at around $91,250, down 2% amid ongoing trade tensions between the US and EU. Cardano’s ADA token is priced at $0.3595, having fallen more than 8% over the past week.