In today’s digital landscape, where personal data is increasingly threatened by sophisticated cyberattacks, the necessity for robust privacy measures has never been more critical. With the rise of artificial intelligence (AI), the need for tools that protect online user data is paramount, as highlighted by Eran Barak, CEO of Shielded Technologies, during a recent interview at Consensus 2025.
As centralized servers and corporate service providers become prime targets for AI-assisted hackers, the risks associated with data breaches escalate significantly. Barak pointed out that these centralized entities effectively act as ‘honeypots’ for malicious actors seeking to exploit valuable user information, including private keys, financial metadata, and sensitive medical records.
“Hackers targeting centralized entities see a massive return on investment due to the concentration of valuable records,” Barak stated. In contrast, decentralized solutions, particularly those employing zero-knowledge (ZK) proofs, promise a paradigm shift in cybersecurity. By enabling the verification of on-chain data without revealing it, ZK-proofs mitigate the incentive for hackers to pursue individual wallets, as the reward for such attacks is significantly diminished compared to breaching centralized databases.
“Blockchain is going to improve cybersecurity around the world, because for a hacker to access actual data, they need to hack individual wallets, but the ROI would be one record instead of millions – not worth it. They are going to go elsewhere.”
The demand for privacy solutions is surging among Web3 developers, driven by the imperative to shield user metadata from AI algorithms and accommodate the requirements of large institutions looking to protect sensitive data before integrating their operations into blockchain systems.
Furthermore, Charles Hoskinson, co-founder of Cardano, announced an upcoming Midnight token airdrop during his appearance at Consensus 2025. This initiative aims to promote collaboration across the industry through cooperative tokenomics. By incentivizing participation from holders of popular cryptocurrencies such as AVAX, XRP, and BTC, the multichain airdrop is designed to unify the Web3 community.
Barak also confirmed that following the initial airdrop, Midnight will invite users within the entire Web3 ecosystem to engage in mining the Midnight token, further emphasizing the inclusive approach to enhancing blockchain privacy.
As the digital world evolves, the integration of advanced privacy measures through blockchain technology will not only fortify cybersecurity but also pave the way for a more secure online environment, helping to protect users from the ever-increasing threats of AI-related breaches.
