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

Blockchain privacy tools such as zero-knowledge (ZK) proofs will become increasingly necessary to protect online user data in the age of artificial intelligence

Eran Barak, CEO of Shielded Technologies, the developer behind the Midnight privacy chain, has highlighted the growing need for blockchain privacy tools such as zero-knowledge (ZK) proofs to protect online user data in the age of artificial intelligence (AI).

In an interview with Cointelegraph at Consensus 2025, Barak explained that corporate service providers and centralized servers are expected to become honeypots for AI-assisted hackers and malicious actors. These hackers will be aiming 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, the CEO added. However, ZK-proofs, a way of verifying onchain data without revealing it, solve this problem:

“We're talking about billions of dollars in ROI for a single hack, which is mind-boggling. They're going to go after centralized service providers and servers because they hold vast amounts of data. But the question is, how do we verify this data without revealing it? That's where zero-knowledge proofs come in.”

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 as a prerequisite to bringing their business operations onchain.

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

According to Hoskinson, the multichain airdrop will serve as a way to bring the industry together through cooperative tokenomics and promote collaboration.

"We have a chance to come together again, and I think in this divisive era, the industry absolutely needs that. We're going to be making an announcement about a Midnight token airdrop to a large user base across different chains, including Avax, XRP, Bitcoin, BAT, and others."

Barak also told Cointelegraph that Midnight would invite interested users across the entire Web3 ecosystem to mine the Midnight token following the initial multichain airdrop.