XRP News Today: Shielded Technologies CEO Warns of AI Data Risks, Promotes Onchain Privacy

Eran Barak, CEO of Shielded Technologies, has underscored the critical importance of onchain privacy in the era of artificial intelligence. As AI technologies continue to evolve, the need to protect user data from being exploited by these systems becomes increasingly urgent. Barak's insights, shared during an interview at Consensus 2025, highlight the potential risks associated with AI's ability to process and analyze vast amounts of data, which could compromise user privacy if not properly managed.

Barak warned that corporate service providers and centralized servers are likely to become prime targets for AI-assisted hackers and malicious actors seeking to steal valuable data, including private keys, financial metadata, medical records, and government documents. He noted that hackers targeting centralized entities have a significant return on investment (ROI) and are incentivized to hack centralized targets that contain millions of valuable records. However, with blockchain technology, hackers would need to target individual wallets, resulting in a much lower ROI and making such attacks less attractive.

To address these concerns, Barak emphasized the role of zero-knowledge (ZK) proofs, a method of verifying onchain data without revealing it. He explained that blockchain technology can enhance global cybersecurity by making it more difficult for hackers to access large amounts of data. This shift would force hackers to target individual wallets, significantly reducing their potential gains and making such attacks less worthwhile.

Privacy solutions have become a major focus for many Web3 developers as the need to shield metadata from AI algorithms grows. Large institutions are increasingly demanding privacy tools to protect sensitive data as a prerequisite to bringing their business operations onchain. Shielded Technologies, with its Midnight privacy chain, is at the forefront of this movement, offering solutions that provide users with onchain privacy while maintaining compliance.

During the same event, Charles Hoskinson, co-founder of Cardano, announced an upcoming Midnight token airdrop for holders of various cryptocurrencies, including Avax (AVAX), XRP (XRP), Bitcoin (BTC), and Brave Attention Token (BAT). Hoskinson highlighted that this multichain airdrop aims to unite the industry through cooperative tokenomics and promote collaboration, emphasizing the importance of unity in a divisive era. Following the initial airdrop, Midnight plans to invite interested users across the entire Web3 ecosystem to mine the Midnight token, further expanding its reach and impact.

In summary, Eran Barak's emphasis on onchain privacy in the age of AI underscores the urgent need for robust privacy measures. As AI technologies advance, the protection of user data becomes increasingly important. Shielded Technologies' efforts in this area are crucial in ensuring that privacy remains a fundamental right in the digital age. The company's focus on privacy solutions positions it as a key player in the evolving landscape of data security, offering tools and technologies to enhance the protection of sensitive information for both individual users and large institutions.