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

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 and malicious actors 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, the CEO told Cointelegraph. Barak added that ZK-proofs, a way of verifying onchain data without revealing it, solve this problem:

"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."

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 protect sensitive data as a prerequisite to bringing their business operations onchain.

Related: EU to ban anonymous crypto accounts and privacy coins by 2027

Cardano's Hoskinson teases multichain airdrop

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.

Hoskinson the multichain airdrop will unite the industry 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."

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.

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