Artificial intelligence is quickly becoming one of the biggest generators of data within the digital world. As artificial intelligence gets more advanced, it is beginning to rely more and more on decentralized technologies to store data, verify results, and make decisions. Blockchains are a technology that seem to be a natural fit for artificial intelligence. However, as we explore this intersection of technology, there is a major problem that becomes more apparent. Most blockchains are completely transparent by nature.
Transparency is one of the biggest advantages that a blockchain has. All transactions, contract executions, and data are publicly accessible by anyone who wishes to view it. While this is a great advantage for a blockchain, it is a major problem when dealing with confidential data. Artificial intelligence is a system that is often based upon proprietary models, data, and user information. When everything is publicly accessible by default, it is hard to imagine a scenario where artificial intelligence is able to function at a large scale.
And that is where @MidnightNetwork takes a completely new route. Instead of accepting transparency as the only means to build trust, they pose a new question: What if smart contracts could demonstrate that they were working, without showing any evidence of the data they were working on? Instead of making developers choose between these two options, Midnight proposes a new approach in which they can coexist.
The concept behind #Night confidential smart contracts is based on the following: Instead of showing all the data involved in executing a smart contract, in traditional blockchain networks, executing a smart contract means showing all the data involved in that calculation. This is where Midnight takes a completely new route, proposing that smart contracts can now demonstrate that they have worked, without showing any evidence of the data they were working on.
This strategy can be very powerful when it is used with artificial intelligence systems. Artificial intelligence systems frequently make use of sensitive data sources like financial information, health information, proprietary data, and private enterprise data. In case the data sources need to be made public for verification, many organizations will be unable to make use of blockchain technology altogether. The availability of confidential smart contracts will be able to assist by enabling AI systems to verify data on a blockchain while keeping their data private.
This could possibly be a fundamental change for the world of decentralized systems as a whole. Most blockchain systems are optimized for maximum visibility, and it is true that maximum visibility makes it easier for users to verify data. However, as blockchain systems start getting used in environments where discretion is as important as transparency, the concept of maximum visibility will start to disintegrate.
Midnight Network’s design indicates that the basis of a new generation of blockchain networks may not be about revealing data but about establishing truths without revealing the basis for that data. If we are to expect further convergence between AI and decentralized networks, this is a capability that is only going to become more important. Enterprises, research teams, and developers are going to need networks that allow collaboration without requiring a loss of discretion.
In this regard, privacy is no longer simply a function that is tacked onto a system. It is a fundamental part of it. Systems that are able to provide a guarantee of discretion and verification are more likely to be able to handle the complex data flows that are a part of AI-driven applications.
While many blockchain projects are racing to make data more visible and accessible, Midnight is working quietly toward a different future. A future in which trust is not created by seeing everything, but by proving what matters without compromising the security of the data. In a future in which AI is creating and analyzing vast amounts of private data, such a solution may not only be desirable, but necessary.
