Zero-knowledge (ZK) proofs will become increasingly necessary to protect online user data

In an interview with Cointelegraph at Consensus 2025, Barak said corporate service providers and centralized servers are expected to become honeypots for AI-assisted hackers

In the age of artificial intelligence, blockchain privacy tools such as zero-knowledge (ZK) proofs will become increasingly necessary to protect online user data, according to Eran Barak, CEO of Shielded Technologies, the developer behind the Midnight privacy chain.

Speaking to Cointelegraph at Consensus 2025, Barak said that corporate service providers and centralized servers are expected to become honeypots for AI-assisted hackers and malicious actors looking to steal valuable data, including private keys, financial metadata, medical records, and government documents.

Hackers are expected to have a "massive" return on investment (ROI) and are accordingly expected to be heavily incenvitised to hack centralized targets that contain millions of valuable records. However, ZK-proofs, a way of verifying onchain data without revealing it, solve this problem, Barak said.

"We can't have a world where people are afraid to go online or use their bank accounts because the hackers will get them, or a world where institutions are afraid to come onchain because they'll be drained by overbearing AIs scraping the chain for metadata," Barak stated.

"This is why we're building Midnight — to provide the privacy needed for a truly inclusive Web3, where everyone can participate without fear or compromise."

Privacy solutions have become a major focus for many Web3 developers, as the need to shield metadata from AI algorithms grows and large institutions demand privacy tools to be able to bring their business operations onchain.

Cardano's Hoskinson teases multichain airdrop

Meanwhile, Cardano co-founder Charles Hoskinson announced an upcoming Midnight token airdrop for Avax (AVAX), XRP (XRP), Bitcoin (BTC), Brave Attention Token (BAT) and others at Consensus 2025. Midnight is a partner chain of the Cardano network.

Speaking at the event, Hoskinson said that the multichain airdrop will bring the industry together through cooperative tokenomics and will promote collaboration.

"We have a chance to come together again, and I think in this divisive era, the industry absolutely needs that," he added.