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Today we have the pleasure of speaking with Eran Barak, a seasoned growth business builder with over 20 years of experience in scaling and driving execution efficiency across various sectors. As the CEO of Midnight, Eran has been at the forefront of developing a regulatory-friendly blockchain that prioritizes data protection and safeguards sensitive information for both individuals and organizations.
Eran’s impressive career spans both small startups and large international franchises. He has a proven track record of launching startups and scaling lines of business, notably growing a company from inception to over $100 million in annual revenue and achieving a valuation exceeding $1 billion. With formal education in both technology and business—holding a BSC in Computer Science and an MBA from Northwestern—Eran combines technical knowledge with strategic insight.
His expertise includes business building, channel development, P&L management, and strategic planning, along with experience in mergers and acquisitions that have driven significant revenue acceleration.
Join us as we delve into Eran's journey, explore the innovative work being done at Midnight, and discuss the future of data protection in the blockchain space. Welcome, Eran!
James Schwahn: Let me take a moment to introduce myself. I'm James Schwahn from Crypto Bit 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.
All interview transcripts have been meticulously transcribed by Stylo.Network, ensuring accuracy and clarity in every detail.
https://discord.com/invite/midnightnetwork
https://t.me/Midnight_Network_Official
https://www.linkedin.com/showcase/midnight-ntwrk/
https://www.youtube.com/@midnight.network
In the evolving landscape of blockchain technology, Midnight emerges as a beacon for those prioritizing data protection without sacrificing the benefits of transparency and decentralization. Here's why Midnight.network is capturing the attention of developers, businesses, and tech enthusiasts alike:
Midnight is engineered to offer the best of both worlds. While most blockchains struggle with the dichotomy of public transparency versus privacy, Midnight leverages zero-knowledge technology, specifically ZK Snarks, to ensure that sensitive data remains confidential. This means transactions and smart contract interactions can be verified without revealing the underlying data, offering an unprecedented level of privacy.
Developers looking to build on blockchain now have a playground where they can create applications that not only give users control over their data but also comply with stringent regulations. Midnight's architecture supports both public and private ledgers within DApps, making it versatile for various use cases, from healthcare to finance.
Midnight introduces an intriguing token system with NIGHT and DUST, where these tokens work in tandem to manage network operations and security. This system not only incentivizes participation but also ensures the sustainability and security of the network.
With its testnet now live, Midnight showcases its commitment to scalability and performance. The network's design supports unlimited scalability and low latency, making it an attractive platform for applications that require real-time data processing without the typical blockchain bottlenecks.
Midnight isn't just about individual privacy; it's about enabling enterprises to harness blockchain technology. By protecting trade secrets, intellectual property, and sensitive customer data, Midnight positions itself as a bridge for traditional businesses stepping into Web3, ensuring compliance and data integrity.
The launch of regular hackathons and the release of comprehensive documentation like the Nightpaper illustrate Midnight's focus on community involvement. These initiatives not only foster innovation but also help refine the platform based on real-world feedback and use cases.
One of Midnight's standout features is the upgradeability of its ZK Snark technology. This ensures that as advancements in zero-knowledge proofs emerge, Midnight can adapt without necessitating a complete overhaul, keeping the network at the cutting edge of security and efficiency.
As we delve deeper into a digital age where data breaches are common and privacy concerns grow, Midnight.network stands out as a solution designed for the future. It's not just about creating another blockchain; it's about redefining how data protection can coexist with the ethos of decentralization. Whether you're a developer eager to innovate or a business looking to safeguard your digital assets, Midnight offers a platform where privacy meets potential.
Join the conversation, explore the testnet, and consider how Midnight could shape your approach to blockchain technology. The future of data protection is here, and it's called Midnight.
Midnight is a data-protection blockchain developed by Input Output Global (IOG), designed to help organizations manage sensitive data securely while complying with data protection regulations.
Midnight utilizes zero-knowledge technology, specifically ZK Snarks, to protect data and metadata, allowing for transactions and smart contract interactions to be verified without exposing the underlying information.
Yes, developers can build DApps on Midnight using TypeScript and Compact, a custom language for creating zero-knowledge circuits. This allows for the creation of applications that leverage both public and private data.
The Nightpaper is an introductory litepaper that outlines Midnight's technology, its approach to data protection, and how it aims to remove barriers for organizations wanting to use blockchain technology.
Yes, Midnight has a testnet that's live, allowing developers to build and test applications in a environment that simulates the mainnet conditions.
While the specific functionalities can evolve, generally, these tokens are integral to the network's operations, potentially involving network security, transactions, or governance mechanisms.
On the Midnight testnet, finality typically occurs one or two blocks after block creation, which means within approximately 18 seconds given the 6-second block time.
Midnight allows for selective disclosure of data. For example, you might prove someone is over a certain age without revealing their exact birthdate, thereby keeping personal details private while verifying necessary information.
Yes, one of Midnight's goals is to enable enterprises to use blockchain technology while complying with regulations like GDPR by providing programmable data protection.
Midnight's use of upgradable ZK Snarks, its distinction between public and private information within smart contracts, and its focus on both developer experience and regulatory compliance set it apart from other privacy blockchains.
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