Controlled access to tokenized digital assets

Non-fungible tokens (NFTs) are increasingly being used to represent assets, credentials, receipts, or even loyalty attributes that can be tracked on a public ledger for any party to view. This has led to innovations in multi-party loyalty programs, cookieless e-commerce, and the ability for customers to bring their own credentials to help organizations provide targeted services or products.

An NFT recorded on a public permissionless blockchain can be visible to everybody, and importantly, metadata from transactions or wallet usage can be correlated to identify individuals and compromise their privacy.

Midnight addresses this challenge by leveraging zero-knowledge (ZK) technology, which ensures privacy in digital interactions. ZK enables one party to prove a statement or claim is true without revealing any other information. For instance, a customer can prove they are eligible for a discount without sharing their full purchase history or sensitive credentials.

With ZK, Midnight's data protection can enable tokenized assets to remain private while still allowing necessary information to be selectively revealed to conduct related activities. Customers can securely share their credentials, points, or membership details with third parties without exposing sensitive data. This approach ensures that customer identity remains secure and free from the risk of compromise through on-chain history analysis, providing privacy without sacrificing functionality.