Cardano is making major moves in the world of privacy-focused blockchain technology. The project has teamed up with some of the biggest tech giants, including Google and the Linux Foundation, along with other Fortune 10 companies, to develop a new initiative called Nightstream. This project is centered around building advanced privacy tools using cutting-edge cryptography.

According to Cardano founder Charles Hoskinson, Nightstream will form the foundation for Midnight, Cardano’s privacy sidechain. The team is working on integrating lattice-based cryptography into a new system called a “folding scheme.” This approach is designed to be more secure and future-proof, especially as quantum computing and AI continue to evolve.

Currently, Midnight uses two major technologies: PLONK and Halo 2. PLONK handles zero-knowledge proofs (a way to verify information without revealing it), while Halo 2 helps scale the network. These tools give Midnight strong privacy protections, but Hoskinson believes there’s room for even more advanced systems.

The new direction aims to replace traditional cryptography with universal primitives based on lattice cryptography. These are better suited for long-term security and can be used with AI hardware, making them more adaptable as technology grows.

Hoskinson also criticized Ethereum’s use of zero-knowledge technology. He believes Ethereum’s approach is too narrow and was originally focused only on scaling the network, not on giving users true privacy or freedom. He pointed out that Ethereum’s infrastructure relies on hash-based systems, which lack the mathematical depth needed for future innovation.

In contrast, Cardano’s lattice-based approach offers more flexibility and can support features beyond what Ethereum currently offers. It also aligns better with AI hardware, which big tech companies like Nvidia and AMD are heavily investing in. Hoskinson argued that Ethereum can’t compete with the massive resources behind these tech giants.

He also shared a bold prediction: Bitcoin could reach $250,000, driven by growing interest from institutions and governments. He sees Bitcoin-based DeFi—especially non-custodial yield products—as a key driver of adoption that could also benefit Cardano in the long run.

At the time of reporting, Bitcoin is trading at $91,250, down 2% due to ongoing global trade tensions. Cardano’s ADA token is priced at $0.3595, having dropped over 8% in the past week.