James Schwahn
View the Permissionless III Recap
Introducing Eran Barak, CEO of Midnight
We are delighted to sit down with Eran Barak, a seasoned growth business builder with over 20 years of experience in scaling and optimizing execution across diverse industries. As the CEO of Midnight, Eran is leading the charge in developing a regulatory-friendly blockchain platform that prioritizes robust data protection for individuals and organizations alike.
A Distinguished Career in Business and Innovation
Eran’s career is a testament to his ability to drive transformative growth. From launching startups to scaling global franchises, he has consistently delivered results. Notably, Eran grew a company from its inception to over $100 million in annual revenue, achieving a valuation exceeding $1 billion.
His expertise spans:
- Business Building:
Creating and scaling high-impact ventures. - Channel Development:
Establishing effective distribution and partnership networks. - P&L Management:
Driving profitability through strategic financial oversight. - Strategic Planning and M&A:
Accelerating revenue through mergers, acquisitions, and long-term vision.
With a BSC in Computer Science and an MBA from Northwestern, Eran blends technical expertise with strategic acumen, making him a dynamic leader in both technology and business.
Pioneering Data Protection at Midnight
Under Eran’s leadership, Midnight is redefining blockchain technology by prioritizing data security and regulatory compliance. His vision is to create a platform that empowers users while safeguarding sensitive information.
Join us as we explore Eran’s remarkable journey, the innovative work at Midnight, and the future of data protection in the blockchain ecosystem. Welcome, Eran!
James Schwahn: Let me take a moment to introduce myself. I'm James Schwahn from CryptoBit Magazine. Could you introduce yourself and tell us more about the story behind Midnight?
Eran Barak: Sure. My name is Eran Barak. I'm the CEO of the Midnight initiative at Input Output. The backstory is that Charles Hoskinson, who's the co-founder of Ethereum, founder of Cardano, and CEO of Input Output, sat down with the team a few years back. He thought about the challenge we have with life having both a public and a private side, and the fact that existing blockchains, whether it's Bitcoin, Ethereum, or even newer ones like Cardano, Solana, or Polkadot, have everything out in the open.
He considered what we would need to develop for a blockchain to be able to keep a secret. From that thinking came over five years of research and development that led to the technology that Midnight is bringing to the market today.
James (CryptoBit Mag): How long have you been with the company?
Eran: I've been here slightly over a year and a half. I joined when the technology had reached a certain level of maturity, and they were thinking it was time to take this concept to the market. Over the last year and a half, we've been getting it ready for deployment. We launched a DevNet late last year and a testnet about a week ago, at the beginning of October. We've had a fantastic response with over 2000 teams trying out and building applications. It's been a very exciting engagement with the community.
James (CryptoBit Mag): Before this, were you in blockchain, or were you in a different industry?
Eran: I started my career as a software developer. I got curious about why we build what we build, so I went into product management. Then I wanted to tell the story, so I went into marketing. After that, I wanted to be the one telling the story, so I went into sales. I spent many years in telecom and finance, creating networks and things around data protection.
My real intro to blockchain, other than playing with Bitcoin miners and other small side hobbies, was in 2021 when I joined forces with Gavin Wood, another co-founder of Ethereum. I worked with him to help with Parity, which is the company behind Polkadot. Then Charles reached out about Midnight, and that got me here.
James (CryptoBit Mag): Which features do you offer users that they'd be interested in specifically?
Eran: When you look at blockchain technology in general, I think everybody understands it's going to be part of many things in the future. It feels almost like how we thought about cloud maybe 10 years ago, and now it's everywhere in every aspect of our lives.
The drawbacks we see today in getting mass market adoption are really around three things:
Data protection: Nobody's comfortable just putting everything out there. Businesses are not going to put all their confidential information out for everybody to see. Even as individuals, people don't want to have their Amazon purchases, web search history, or financial information all public. There are aspects of your life that you want to keep private. For blockchain to become usable in the real world, it has to have data protection and what we refer to as selective disclosure, meaning you need to decide as the owner of the data what you want to expose versus what you want to keep private.
Cost control: In existing blockchains, the cost of submitting a transaction is based on the price of the token. If the token price is volatile, you don't have certainty on how much it's going to cost you to run an application on that infrastructure. For a business use case, you need to approve a budget and know how much it's going to cost to use the system next year. Without that certainty, projects and applications won't get approved.
Service level assurance: Today, blockchains are operated by people out in the world, and you need to know that the infrastructure is going to be up and running whenever you want to use it. It's not okay to say, "Sorry, the blockchain is busy right now, come back in 20 minutes." When we use regular infrastructure, you get an SLA from Google, Amazon, Azure, or whoever it is. In the blockchain world, who are you going to turn to? We need to figure out a way to give that assurance.
Midnight has designed a system that addresses these three aspects. You've got data protection for both the data and metadata, cost control, and SLA. These things come together to make business applications actually possible in real-world scenarios.
James (CryptoBit Mag): Is there anything else you'd like to share with the audience? Also, where can they connect with you on social media?
Eran: I'll add one more thing related to data protection. We're not the only chain trying to do data protection - I think everybody understands this is a primitive that is truly missing. But what Midnight did is not just protect the data, but do it in a way that is compliant and helps people using the technology be compliant with regulatory requirements.
There's a lot of concern with other technologies trying to shield data that we would create vehicles for money laundering or other illicit activities. So we had to design things in a way that would allow for data protection but still keep with the perspectives and rules that regulators like to see. I think that was a real innovation that we achieved.
I want to thank you for the opportunity and extend an invite to anybody out there interested in blockchain technology to check out Midnight. You can go to midnight.network website. We've got all the information, documentation, as well as Discord groups, Telegram channels, and other ways to engage with us. As I said, there's already a very vibrant community of people trying things out, and there are other partners that we'll announce shortly. It's exciting times to be a part of this industry, and I hope to find more players out there to work with and grow this ecosystem for the market.
James (CryptoBit Mag):That’s exciting! I truly appreciate you taking the time to speak with us.
Eran: Sounds great. Thank you very much. I appreciate it.
James (CryptoBit Mag): Thanks so much.
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Discovering Midnight:
The Future of Data-Protection Blockchain
In the rapidly evolving world of blockchain technology, Midnight, developed by Input Output Global (IOG), stands out as a pioneering solution for those prioritizing data protection while embracing the benefits of decentralization and transparency. Here’s why Midnight.network is gaining traction among developers, enterprises, and blockchain enthusiasts:
1. Balancing Transparency with Privacy
Midnight redefines blockchain privacy by leveraging advanced zero-knowledge technology, specifically ZK Snarks, to ensure sensitive data and metadata remain confidential. Unlike traditional blockchains where data is fully public, Midnight allows transactions and smart contract interactions to be verified without exposing underlying information, offering unparalleled privacy for users and businesses.
2. Empowering Decentralized Applications (DApps)
Midnight provides a robust platform for developers to build DApps that prioritize user control over data while adhering to strict regulatory standards. Supporting both public and private ledgers within DApps, Midnight is versatile for use cases spanning healthcare, finance, supply chain, and gaming, enabling secure and compliant decentralized solutions.
3. Innovative Token System with NIGHT and DUST
Midnight’s dual-token system, featuring NIGHT and DUST tokens, drives network operations, security, and potential governance. These tokens incentivize participation, ensure network sustainability, and provide a stable economic framework, making Midnight an attractive ecosystem for developers and users alike.
4. Scalability and High Performance
With its testnet live since early October 2024, Midnight demonstrates a commitment to scalability and low-latency performance. The network’s architecture supports high-throughput applications, eliminating common blockchain bottlenecks and enabling real-time data processing for industries like finance and logistics.
5. Bridging Enterprises to Web3
Midnight is tailored for enterprises transitioning to Web3, offering robust data protection for trade secrets, intellectual property, and customer information. Its compliance-friendly design aligns with regulations like GDPR, making it a trusted platform for businesses seeking to integrate blockchain without compromising data integrity.
6. Vibrant Community and Developer Engagement
Midnight fosters innovation through regular hackathons, comprehensive documentation like the Nightpaper, and active community channels on Discord and Telegram. With over 2,000 teams already building on the testnet, Midnight’s collaborative ecosystem drives real-world feedback and continuous improvement.
7. Future-Proof with Upgradeable ZK Snarks
Midnight’s use of upgradeable ZK Snarks ensures the platform remains at the forefront of privacy technology. As zero-knowledge proof advancements emerge, Midnight can seamlessly adopt them without requiring a network overhaul, ensuring long-term security and efficiency.
8. Regulatory Compliance Without Compromise
Unlike some privacy-focused blockchains, Midnight is designed to prevent misuse, such as money laundering, by aligning with regulatory standards. Its selective disclosure feature allows users to share specific data points while keeping sensitive information private, ensuring compliance without sacrificing privacy.
9. Cost Control for Business Adoption
Midnight addresses token price volatility to provide predictable transaction costs, enabling businesses to budget effectively for blockchain applications. This cost stability is critical for enterprises planning long-term blockchain integration.
10. Reliable Service Level Assurance
Midnight guarantees consistent infrastructure availability through service level assurances, overcoming the unpredictability of traditional blockchains. This reliability makes it suitable for mission-critical applications requiring uninterrupted access.
Conclusion: Why Midnight Matters
In an era of increasing data breaches and privacy concerns, Midnight.network redefines blockchain technology by harmonizing data protection with decentralization. Whether you’re a developer building innovative DApps, an enterprise safeguarding sensitive data, or an individual prioritizing privacy, Midnight offers a platform where security meets opportunity. Join the future of data protection today.
Get Involved
Explore the testnet, access the Nightpaper, and join the vibrant Midnight community at midnight.network. Connect via Linktree for updates and engage in hackathons to shape the future of privacy-focused blockchain technology.
Midnight Blockchain Comprehensive FAQ:
Your Guide to Data-Protection Blockchain
What is Midnight Blockchain?
Midnight is a cutting-edge blockchain developed by Input Output Global (IOG), designed to prioritize data protection. It enables individuals and organizations to securely manage sensitive data while ensuring compliance with global data protection regulations, positioning it as a leader in privacy-focused blockchain solutions.
Who Created Midnight?
Midnight was initiated by Input Output Global (IOG), founded by Charles Hoskinson, co-founder of Ethereum and creator of Cardano. The project stems from over five years of research to address privacy challenges in blockchain technology.
How Does Midnight Ensure Data Privacy?
Midnight utilizes zero-knowledge technology, specifically ZK Snarks (Zero-Knowledge Succinct Non-Interactive Argument of Knowledge), to safeguard both data and metadata. This allows transactions and smart contract interactions to be verified without exposing sensitive information, ensuring robust privacy.
What is Selective Disclosure, and How Does Midnight Implement It?
Selective disclosure empowers users to control what data they share. For example, Midnight enables proving specific attributes, such as being over 18, without revealing exact details like a birthdate, balancing privacy with necessary verification.
Can Developers Build Decentralized Applications (DApps) on Midnight?
Yes, developers can create DApps using TypeScript and Compact, a custom language designed for zero-knowledge circuits. Midnight’s architecture supports both public and private ledgers within DApps, making it versatile for industries like finance, healthcare, and supply chain.
What is the Nightpaper?
The Nightpaper is a detailed litepaper that outlines Midnight’s technology, its approach to data protection, and its mission to remove barriers for organizations adopting blockchain. It serves as a key resource for developers, businesses, and enthusiasts.
Is Midnight Available for Development?
Midnight’s testnet is live, providing a mainnet-like environment for developers to build and test applications. Over 2,000 teams have already engaged with the testnet, showcasing strong community interest.
What Are NIGHT and DUST Tokens Used For?
NIGHT and DUST tokens are integral to Midnight’s ecosystem, supporting transaction processing, network security, and potential governance mechanisms. They incentivize participation and ensure the network’s sustainability and efficiency.
How Does Midnight Handle Transaction Finality?
On the Midnight testnet, transaction finality typically occurs within one or two blocks, approximately 18 seconds, given a 6-second block time. This ensures fast and reliable transaction processing.
How Does Midnight Support Enterprise Compliance?
Midnight enables compliance with regulations like GDPR by offering programmable data protection. Enterprises can safeguard sensitive data, such as trade secrets, intellectual property, and customer information, while leveraging blockchain’s transparency and decentralization.
What Makes Midnight Different from Other Privacy-Focused Blockchains?
Midnight stands out with its upgradeable ZK Snarks, support for both public and private data in smart contracts, and a focus on regulatory compliance and developer experience. Unlike some privacy blockchains, it avoids enabling illicit activities by aligning with regulatory standards.
How Does Midnight Address Cost Control for Businesses?
Midnight mitigates token price volatility to provide predictable transaction costs. This allows businesses to budget effectively for blockchain applications, addressing a key barrier to enterprise adoption.
What is Midnight’s Approach to Service Level Assurance?
Midnight ensures reliable infrastructure with service level assurances, addressing the unpredictability of traditional blockchains. This guarantees consistent availability, making it suitable for business-critical applications.
What Programming Languages Are Supported for Midnight Development?
Developers can use TypeScript for DApp development and Compact, a specialized language for creating zero-knowledge circuits, ensuring flexibility and ease of integration for privacy-focused applications.
How Scalable is Midnight?
Midnight’s design supports unlimited scalability and low latency, addressing common blockchain bottlenecks. This makes it ideal for applications requiring real-time data processing, such as financial transactions or supply chain tracking.
What Industries Can Benefit from Midnight?
Midnight’s privacy-first approach suits industries like:
- Healthcare: Securely managing patient data.
- Finance: Protecting financial transactions and client information.
- Supply Chain: Safeguarding trade secrets and logistics data.
- Gaming: Enabling private in-game transactions.
- Enterprise: Supporting compliance with data protection laws.
How Does Midnight Use Zero-Knowledge Proofs (ZK Snarks)?
Midnight employs ZK Snarks to enable cryptographic verification of transactions and smart contracts without revealing underlying data. Its upgradeable ZK Snarks ensure the network stays at the forefront of privacy technology.
What is the Role of Input Output Global (IOG) in Midnight?
IOG, the creators of Cardano, developed Midnight to address privacy gaps in existing blockchains. They oversee its ongoing development, testnet deployment, and ecosystem growth.
How Can I Get Involved with Midnight Blockchain?
Visit midnight.network for comprehensive documentation, join the community on Discord or Telegram, or explore the testnet to start building. Midnight hosts regular hackathons to foster innovation and collaboration.
What is the Midnight DevNet and Testnet?
The DevNet, launched late last year, and the testnet, launched in early October, are environments for developers to test and build applications. The testnet simulates mainnet conditions, allowing real-world feedback and refinement.
How Does Midnight Prevent Illicit Activities?
Midnight’s design ensures data protection while adhering to regulatory requirements, preventing misuse for activities like money laundering. Its selective disclosure and compliance-focused approach align with global standards.
What is the Significance of Midnight’s Token System?
The NIGHT and DUST tokens incentivize network participation, secure operations, and potentially support governance. Their dual-token system enhances network efficiency and user engagement.
How Does Midnight Compare to Other Blockchains Like Cardano or Polkadot?
Unlike Cardano, Ethereum, or Polkadot, which prioritize transparency, Midnight focuses on data protection using ZK Snarks. Its regulatory-friendly approach and cost control mechanisms make it uniquely suited for enterprise use.
Can Midnight Be Used for Web3 Applications?
Yes, Midnight is a Web3-ready platform, enabling enterprises and developers to build privacy-focused applications that bridge traditional business with decentralized technology.
What Are the Benefits of Midnight’s Upgradeable ZK Snarks?
Upgradeable ZK Snarks ensure Midnight can adopt advancements in zero-knowledge technology without requiring a network overhaul, keeping it secure and efficient as cryptographic methods evolve.
How Does Midnight Support Community and Developer Engagement?
Midnight fosters engagement through hackathons, comprehensive documentation, and active community channels like Discord and Telegram. These initiatives encourage innovation and real-world feedback.
Where Can I Learn More About Midnight?
Explore midnight.network for the Nightpaper, technical documentation, and community resources. Follow Midnight on social platforms via Linktree for updates.
When Will Midnight’s Mainnet Launch?
While no official mainnet launch date has been announced, the testnet’s success and community engagement suggest ongoing progress. Check midnight.network for updates on the mainnet timeline.
How Does Midnight Ensure Low Latency for Applications?
Midnight’s architecture is optimized for low latency, supporting real-time data processing critical for applications like financial transactions or supply chain management, without compromising privacy.
Can Individuals Use Midnight for Personal Data Protection?
Yes, individuals can use Midnight to keep personal data, such as financial transactions or browsing history, private while interacting with DApps, ensuring control over their digital footprint.
How Does Midnight Balance Transparency and Privacy?
Midnight allows public and private ledgers within the same DApp, enabling transparency where needed (e.g., for audits) and privacy for sensitive data, offering a versatile solution for diverse use cases.
What Are the Risks of Using Midnight?
As with any blockchain, risks include potential bugs in early-stage development, regulatory changes, or market volatility affecting token value. Midnight mitigates these through rigorous testing and compliance-focused design.
How Can Businesses Start Using Midnight?
Businesses can explore the testnet via midnight.network, access developer resources, and join hackathons to prototype applications. Midnight’s compliance features make it enterprise-ready.
What Support Does Midnight Offer for Developers?
Midnight provides extensive documentation, a testnet for experimentation, and community support via Discord and Telegram. The Nightpaper and developer guides offer insights into building privacy-focused DApps.
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