I just found a new possibility with Midnight's tech: You’re able to do native cross-chain privacy swaps with ADA and BTC (and others)… Here’s how: 1. User sends native BTC to our Bitcoin liquidity pool The pool address is controlled by protocol validators with a threshold scheme or perhaps even a Sundial/BitcoinOS program The swap instructions are encoded in the metadata (recipient ADA address, min-out, etc.) No custody transfer to a company occurs. Funds are locked under protocol control. 2. Bitcoin payment is proven Instead of protocol validators simply observing the input chain, Midnight can verify the BTC event cryptographically, using a zk proof of: - inclusion in BTC block - sufficient confirmations - correct pool address - encoded swap parameters This proof becomes a public input to a Compact circuit. 3. Compact circuit executes the AMM transition Inside Midnight the AMM pool state is updated, using the proof generated in (2): - BTC-side liquidity increases - ADA-side liquidity decreases - A fraction of the input BTC or output ADA is reserved as a fee - Swap-specific information can be registered on-chain (shielded!) 4. ADA release authorized on Cardano and delivered to user A Cardano transaction is created that consumes the ADA liquidity UTxO and sends ADA to the recipient address. This authorization can be enforced via threshold control or a Cardano smart contract that only releases funds when a valid Midnight proof is provided. We’ll be bringing this technology to Pulse along with some other novel privacy features that we will share soon. Thanks to everyone for the support and hope you enjoyed this tweet.