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Midnight uses technology that allows DApps to validate user data without sharing it, which protects users’ identities, ensuring integrity – the assurance that data has not been tampered with.

For this, Midnight uses zero-knowledge (ZK) technology. ZK allows one party to prove to another that a certain statement or claim is true without revealing all the evidence for the proof of that statement. Zero-knowledge proofs (ZKPs) are used to address secure data protection, and interoperability concerns.

Midnight employs ZK Snarks, a highly efficient form of ZKP that enables secure transactions without revealing the identities of transacting parties or transaction details.

It is important to note that there are different types of ZKPs. Midnight chose ZK Snarks as this is currently the most attractive proving system from the verifier’s perspective. By ensuring both efficiency and strong security guarantees, ZK Snarks are a ‘Swiss army knife’ for blockchains and distributed ledgers, with applications in data protection, and interoperability.

ZK Snarks are implemented in the Zswap transaction protocol and Midnight smart contracts. These protocols preserve confidential data and enable smart contract development methods that facilitate concurrency and security for transactions involving assets and the exchange of value.