Blockchain Privacy Tools to Become Essential in AI Era
The increasing prevalence of artificial intelligence (AI) is set to make blockchain privacy tools like zero-knowledge (ZK) proofs indispensable for protecting online user data, according to Eran Barak, CEO of Shielded Technologies, the company behind the Midnight data protection blockchain.
In an interview with Cointelegraph at Consensus 2025, Barak explained that corporate service providers and centralized servers are expected to become prime targets for AI-assisted hackers looking to steal valuable data, including private keys, financial metadata, medical records, and government documents. “Hackers targeting centralized entities have a ‘massive’ return on investment (ROI) and are incentivized to hack centralized targets that contain millions of valuable records,” Barak told Cointelegraph.
Barak highlighted that ZK-proofs, which allow for the verification of onchain data without revealing it, address this issue. “Blockchain is going to improve cybersecurity around the world, because, for a hacker to get to actual data, they need to hack individual wallets, but their ROI would be one record instead of millions — not worth it. They are going to go elsewhere,” he said.
Privacy solutions have become a major focus for many Web3 developers as the need to shield metadata from AI algorithms grows. Large institutions are demanding privacy tools to protect sensitive data before bringing their business operations onchain.
Midnight generates shielded assets that provide users with onchain privacy and data protection while maintaining compliance. The Midnight token is set to be airdropped to holders of various cryptocurrencies, including Avax (AVAX), XRP (XRP), Bitcoin (BTC), and Brave Attention Token (BAT), as part of an initiative to unite the industry through cooperative tokenomics.
Cardano co-founder Charles Hoskinson announced the multichain airdrop at Consensus 2025, stating, “We have a chance to come together again, and I think in this divisive era, the industry absolutely needs that.” Following the initial airdrop, Midnight plans to invite users across the Web3 ecosystem to mine the Midnight token.
As the industry moves towards greater adoption of blockchain technology, the importance of privacy solutions like Midnight and ZK-proofs is set to grow. By providing a secure and private way to conduct transactions and store data, these technologies have the potential to bring about a significant improvement in cybersecurity.
