Onchain Privacy in the AI Era: Shielded CEO Urges Urgent Action

As artificial intelligence (AI) advances, the need to shield sensitive user data will only become more critical, according to Eran Barak, CEO of Shielded Technologies — the company behind the Midnight privacy chain.

Barak explained that blockchain-based privacy tools, particularly zero-knowledge (ZK) proofs, will play a key role in protecting online data in an era when AI-driven hacking attempts are on the rise. Speaking at Consensus 2025, he emphasized that corporate service providers and centralized servers are turning into major targets — or "honeypots" — for AI-assisted hackers eager to steal valuable information such as private keys, financial metadata, medical records, and government documents.

“Hackers targeting centralized entities get a massive return on investment (ROI). They are incentivized to attack centralized systems holding millions of sensitive records,” Barak said. But with ZK-proofs — cryptographic methods that verify data without revealing its content — blockchain offers a way to change this dynamic.

Midnight generates shielded assets that provide users with onchain privacy while maintaining compliance. Source: Midnight

“Blockchain is going to improve cybersecurity worldwide,” Barak noted. “For a hacker to access actual data, they’d need to hack individual wallets — and their ROI drops to just one record instead of millions. It’s simply not worth it. They’ll move on to other targets.”

The growing focus on privacy solutions is now a central theme for many Web3 developers. As AI algorithms become more capable of analyzing metadata and large institutions begin demanding privacy guarantees, advanced tools like ZK-proofs are seen as essential for safeguarding sensitive information and ensuring that business operations can safely transition onchain.

Cardano’s Hoskinson Teases Multichain Airdrop

In related developments at Consensus 2025, Cardano co-founder Charles Hoskinson announced an upcoming multichain airdrop of the Midnight token. This airdrop will target holders across several major networks, including Avalanche (AVAX), XRP, Bitcoin (BTC), Brave Attention Token (BAT), and others. Midnight operates as a partner chain within the Cardano ecosystem.

Hoskinson highlighted the airdrop as an opportunity to bring the blockchain industry together through cooperative tokenomics and shared goals. “We have a chance to come together again, and in this divisive era, the industry absolutely needs that,” he said.

Beyond the airdrop, Barak added that Midnight plans to open up mining opportunities for interested users across the broader Web3 landscape, allowing more participants to engage with the Midnight network following the initial token distribution.