Key Takeaways
- Midnight’s CEO talks about the role of privacy in Web3 in an exclusive interview.
- Fahmi Syed noted that privacy is a layer that offers added protection and is not just about anonymity.
- Midnight used ZK proofs to offer blockchain developers a scalable, focused solution.
Privacy is an integral part of the crypto world and a key ethos; however, over the years, centralization among blockchain networks and regulatory oversight have put privacy in the back seat.
In 2025, decentralization seems to be back in fashion as firms like Midnight continue to build privacy-focused, scalable solutions, something Ethereum has long promised but hasn’t delivered.
Midnight: A Privacy-Focused Blockchain Incubated by Input Output
Midnight is a blockchain platform built on Cardano focused on data protection and user privacy by leveraging zero-knowledge proofs (ZKPs).
It aims to allow developers to create applications that handle sensitive data while giving users control and ensuring regulatory compliance, offering a new “data protection blockchain” category distinct from traditional privacy chains.
The network uses advanced cryptography for granular confidentiality, a user-friendly programming model, and has a native token called NIGHT.
CCN talked to Fahmi Syed, CEO of Midnight Foundation, at Token2049 to gain insight into Midnight’s focus and niche.
Talking about the project beginning, Syed said:
“The project was incubated within input-output over several years, a vision of Charles. We all recognize that we’re entitled to privacy and data protection in our physical and digital worlds. We hear about data hacks all the time.”
“With the advent of CK zero-knowledge proofs, we can learn to talk to different private or web chain databases, and bring those together by presenting proofs. So we become a meta chain, a truth layer to all other chains, to all other databases, to Trusted Execution environments and beyond,” he added.
Talking about Midnight’s versatility, Syed said
“The companies could use our technology and build natively on Midnight or a consumer service for Midnight. It allows a hybrid application blockchain stack to be built. So make a super fast Solana Dex, but use Midnight for privacy or identity. There’s one meta chain providing that single chain, and almost to the extent that the user doesn’t see midnight, it just sits as a layer beneath everything else.”
The Rational Privacy in Web3
Syed noted that Rational privacy is a simple concept and gave an example.
“You and I have just met, and briefly we’ve identified a little about our heritage, where we’re from, and where we live. But you haven’t given me a specific, rational privacy.”
“Similarly, when we interact in Web 2.0, we buy stuff or share information on social media. And in web three, that is a concept we’re trying to introduce: that the world is not just a public state or a private state, but different shades in between.”
He added that with Midnight,” you can present proofs of who you are to keep things very private, keep your data off-chain, and share that information. And sharing that information is about what you have, when you have it, and to whom you want to share it. That’s very powerful.”
Talking about the generation of blockchains, Syed noted that the third generation had some adoption, but not the mass adoption that we or the projects aim for. Privacy plays a key role in finance.
Privacy Is not Just Anonymity
When discussing what privacy means in Web 3.0, Syed explains that everybody wants data protection or confidentiality, which gives you confidence when everything you do today is on a blockchain.
“At some point, people believe anonymity is privacy. It is not. I see anonymity is like having a translucent blind in your room. When you go to bed, if you have the translucent blind in the morning, the light will start to shine through and wake you up, whereas if you have curtainsor blind black screen, or at least the option to have a curtain, then it protects you, and the light doesn’t come in and you sleep through the morning, through the dawn.”
Syed describes privacy as a layer that aids compliance rather than hinders it. “It is a fundamental human right.”
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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Insha Zia is the News Editor at CCN. Based in Dubai, United Arab Emirates, he ensures the CCN newsroom provides value to readers by educating, informing, and engaging them with accurate and timely coverage.
Before joining CCN, Insha was a Senior Journalist at DailyCoin, where his career in crypto journalism took off. At DailyCoin he garnered ample experience by covering some of the biggest news in the crypto industry, especially in the Cardano ecosystem, and maintain solid relations with KOLs in the industry.
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