In an era where artificial intelligence (AI) is becoming increasingly omnipresent, onchain privacy has become a pressing concern. According to Eran Barak, CEO of Shielded Technologies, the developer behind the Midnight privacy chain, obscuring sensitive user data from AI algorithms will become a necessity in the coming years.

"Blockchain privacy tools such as zero-knowledge (ZK) proofs will become increasingly necessary to protect online user data in the age of artificial intelligence," Barak said during an interview with Cointelegraph at Consensus 2025. "As AI improves, we can expect more sophisticated attacks on centralized entities, making it imperative for users to shield their metadata from these algorithms."

Centralized servers and corporate service providers are expected to become targets for AI-assisted hackers looking to steal valuable data, including private keys, financial metadata, medical records, and government documents. These malicious actors are motivated by the "massive" return on investment (ROI) they can achieve by breaching centralized entities that contain millions of valuable records.

"Hackers targeting centralized targets have a massive ROI and are incentivized to hack these targets because they contain millions of valuable records," Barak explained. "This makes it essential for us to develop privacy solutions that can protect sensitive data from being exploited by AI algorithms."

Barak highlighted the importance of ZK-proofs, a way of verifying onchain data without revealing it, as a solution to this problem. By using ZK-proofs, users can ensure their data remains private even when shared with trusted parties or processed by AI algorithms.

"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," Barak noted.

Cardano co-founder Charles Hoskinson also discussed the importance of onchain privacy during his speech at Consensus 2025. He announced an upcoming Midnight token airdrop for holders of Avax (AVAX), XRP (XRP), Bitcoin (BTC), Brave Attention Token (BAT), and others, which will unite the industry 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," Hoskinson said. "The multichain airdrop will bring users from across the entire Web3 ecosystem together to mine the Midnight token following the initial multichain airdrop."

Barak also emphasized that Midnight's token airdrop would extend beyond the initial recipients, inviting interested users across the entire Web3 ecosystem to participate in mining the Midnight token.

A New Era of Onchain Privacy

The need for onchain privacy has never been more pressing. As AI continues to advance and become increasingly pervasive, it's essential that we develop solutions that can protect our sensitive data from being exploited by these algorithms.

"The future of Web3 is not just about decentralization and security; it's also about onchain privacy," Barak said. "We need to develop tools that can ensure user data remains private even when shared with trusted parties or processed by AI algorithms."

Cooperative Tokenomics: A New Era of Collaboration

The Midnight token airdrop announced by Charles Hoskinson represents a new era of cooperation in the Web3 ecosystem. By uniting users across different chains and promoting collaboration, this initiative has the potential to revolutionize the way we approach onchain privacy.

"We have a chance to come together again, and I think in this divisive era, the industry absolutely needs that," Hoskinson said. "The multichain airdrop will bring users from across the entire Web3 ecosystem together to mine the Midnight token following the initial multichain airdrop."

Conclusion

In conclusion, onchain privacy has become a pressing concern in the age of AI. By developing solutions such as zero-knowledge proofs and cooperative tokenomics, we can ensure that our sensitive data remains private even when shared with trusted parties or processed by AI algorithms.

The future of Web3 is not just about decentralization and security; it's also about onchain privacy. As AI continues to advance and become increasingly pervasive, it's essential that we develop tools that can protect our user data from being exploited by these algorithms.