Shielded Technologies CEO Predicts a Privacy Shift in the Age of AI
Eran Barak, CEO of Shielded Technologies, the company behind the Midnight privacy chain, has voiced his strong belief that blockchain privacy tools like zero-knowledge (ZK) proofs will become increasingly crucial for protecting online user data in the era of artificial intelligence (AI). Speaking at Consensus 2025, Barak articulated his vision for the future of digital privacy, emphasizing the growing threat posed by AI-assisted hackers and malicious actors.
Barak argues that centralized servers and corporate service providers will become prime targets for these sophisticated attackers, who are motivated by the potential to steal valuable data, including private keys, financial metadata, sensitive medical records, and even government documents. These hackers, he notes, are incentivized by the “massive” return on investment (ROI) they can achieve by targeting centralized entities that store vast amounts of sensitive information.
ZK-Proofs: A Solution to AI-Driven Security Threats
Barak believes that ZK-proofs, a cryptographic technique that allows for verifying onchain data without revealing its contents, offer a powerful solution to this emerging threat landscape. “Blockchain is going to improve cybersecurity around the world,” he told Cointelegraph, “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.”
His vision paints a compelling picture of a future where decentralized security, enabled by blockchain technology and ZK-proofs, becomes the dominant force. Hackers would be forced to shift their focus from large-scale, centralized targets to individual wallets, making their efforts less lucrative and ultimately deterring them from pursuing such attacks.
Industry-Wide Adoption of Privacy Solutions
The demand for privacy solutions in the Web3 space is growing rapidly, as developers grapple with the challenge of shielding metadata from powerful AI algorithms. Large institutions are also demanding robust privacy tools as a prerequisite for bringing their business operations onchain. Midnight, with its shielded assets, aims to provide users with onchain privacy while ensuring compliance.
“We have a chance to come together again, and I think in this divisive era, the industry absolutely needs that.” – Charles Hoskinson at Consensus 2025
This trend towards onchain privacy is further highlighted by the recent announcement of a multichain airdrop for Midnight tokens, spearheaded by Cardano co-founder Charles Hoskinson. Hoskinson sees this airdrop as a way to unite the industry through cooperative tokenomics and promote collaboration.
The convergence of AI advancements and the growing need for onchain privacy underscores the crucial role that blockchain technology and privacy-enhancing tools will play in shaping the future of digital security. As the adoption of blockchain technology accelerates, expect to see a continued focus on developing and deploying innovative privacy solutions to protect users and their data in this evolving digital landscape.
