In the crypto world, there has always been a dilemma: privacy or compliance. Many blockchains are completely transparent, meaning anyone can trace transactions and analyze data. That's great for public auditing, but not so much when it comes to sensitive information.
This is where Midnight Network comes in. This project proposes an interesting concept: rational privacy. Instead of hiding everything or revealing everything, it uses zero-knowledge proofs (ZK) to allow information to be verified without exposing the actual data.