Protecting Privacy in an Era of AI
Privacy is becoming one of the biggest challenges in today’s digital world, especially as artificial intelligence continues to evolve rapidly. Eran Barak, CEO of Shielded Technologies, shared with Cointelegraph at Consensus 2025 why safeguarding sensitive data from AI and cybercriminals is now essential. Shielded Technologies is developing Midnight, a blockchain project focused on keeping user data private and secure.
Artificial intelligence can process and analyse huge amounts of information at remarkable speeds. This capability makes it easier for AI tools to detect patterns in personal data, such as financial records, medical files, or government documents. If AI gains access to this information, it could lead to serious privacy breaches or aid hackers in stealing valuable data.
Barak pointed out that large organisations — like banks, healthcare providers and government bodies — which hold vast amounts of information, are likely to become prime targets for hackers using AI. These hackers focus on centralised servers where data is kept in one place because it’s a much easier way to access millions of records at once.
Image 1: Consensus 2025 (Source: TradingView)
The Danger of Centralised Systems
Centralised data storage means all sensitive information is kept on single servers. While this setup may be convenient, it creates a huge risk. If hackers break into one of these central points, they can gain access to vast amounts of personal data. Barak stated that such attacks offer a very high return for cybercriminals, making centralised servers attractive targets.
By comparison, blockchain technology takes a different approach by decentralising data. Instead of storing information in one location, data is spread across many individual wallets controlled by users themselves. This decentralisation makes it far tougher for hackers to steal large amounts of information, since they would have to attack each wallet separately. Barak explained that this could change the hacking landscape, pushing attackers to look for easier opportunities.
Zero-Knowledge Proofs Provide a New Layer of Privacy
One promising tool that Shielded Technologies is using to protect data is zero-knowledge proofs, or ZK-proofs. This technology allows someone to prove that a piece of information is true without revealing the actual details behind it. For example, a person could prove they are over 18 years old without showing their exact birthday. This protects privacy while still allowing verification.
With AI’s growing capabilities, privacy tools like ZK-proofs are becoming increasingly important. Developers building Web3 — the next generation of internet services using blockchain — are focusing on protecting not only data but also metadata. Metadata includes information such as who sent a message and when, which can be sensitive. Many large companies are now demanding these privacy features before they will even consider moving their operations onto blockchain platforms.
Midnight’s Vision for Privacy and Industry Unity
Midnight is a privacy-focused blockchain developed by Shielded Technologies to give users more control over their data and keep it safe from AI surveillance and cyberattacks. At Consensus 2025, Charles Hoskinson, co-founder of Cardano, announced a multichain airdrop of Midnight tokens. This means holders of several cryptocurrencies — including Bitcoin, XRP, Avalanche (AVAX), and Brave Attention Token (BAT) — will receive free Midnight tokens.
Hoskinson also explained that this airdrop aims to foster greater cooperation within the blockchain space. The crypto industry is often fragmented, with many projects working independently. Initiatives like the Midnight token airdrop help bring different communities together and encourage collaboration. Barak added that following the airdrop, Midnight plans to invite users from across Web3 to participate in mining the Midnight token, offering more ways for people to contribute and benefit from the project.
Image 2: Consensus (Source: Shielded Technologies)
A Changing Landscape for Data Security
The growth of AI presents new challenges for data privacy. Traditional centralised databases are increasingly vulnerable to attacks, especially when targeted by AI-driven hacking tools. This shift means it’s more important than ever to rethink how sensitive data is protected.
Blockchain’s decentralised structure, combined with advanced privacy tools like zero-knowledge proofs, offers a stronger defence against cyber threats. Projects like Midnight and the efforts of Shielded Technologies demonstrate how the crypto industry is adapting to these challenges.
By promoting collaboration and innovation, the blockchain community is working to create a safer, more private digital environment. As more businesses and users move onto blockchain platforms, privacy will continue to be a critical factor in building trust and security online.
