- Blockchain privacy tools are seen as essential for protecting user data from AI-driven threats.
- Centralized servers are expected to become major targets for Hackers using Artificial Intelligence.
- Zero-knowledge proofs can secure sensitive data without revealing personal information.
- Web3 developers and institutions are demanding stronger privacy measures for onchain data.
- Cardano’s Midnight chain will conduct a multichain token airdrop to broaden ecosystem collaboration.
Eran Barak, CEO of Shielded Technologies and developer of the Midnight privacy chain, stated that privacy tools like zero-knowledge (ZK) proofs will be more important than ever as artificial intelligence continues to advance. Barak shared these views at Consensus 2025, expressing concern that centralized platforms will attract hackers using AI to steal valuable records.
According to Barak, attacks on centralized service providers and servers could yield high returns for bad actors. These centralized entities hold millions of sensitive records, including private keys, financial data, and medical or government documents. Barak explained that zero-knowledge proofs can help by verifying transactions or information on the blockchain without revealing the actual data.
"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," Barak said.
As the risk of AI-powered data theft rises, many Web3 developers are prioritizing privacy solutions to defend against threats. Barak noted that large organizations require these tools to safeguard sensitive information before moving their operations to the blockchain. Midnight, the privacy-focused chain developed by Shielded Technologies, uses shielded assets to protect user data while complying with relevant regulations.
In addition to privacy developments, Cardano co-founder Charles Hoskinson announced plans for a multichain airdrop involving Midnight tokens for holders of various cryptocurrencies, such as AVAX, XRP, BTC, and BAT. Hoskinson said this airdrop aims to promote industry unity and encourage collaboration across blockchain ecosystems.
Barak added that the Midnight team will invite users from across the Web3 landscape to mine the Midnight token following the initial airdrop. For more context on regulatory changes, see EU to ban anonymous crypto accounts and privacy coins by 2027.
More coverage of recent advancements in AI and security can be found in UK’s Orwellian AI murder prediction system, will AI take your job? AI Eye.
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