Authored by Eran Barak, CEO of Midnight, it has been almost 16 years since the inception of blockchain, which garnered global attention, especially with backing from Wall Street. Despite its surge in popularity, the technology has not yet fully realized its potential due to the difficulty of maintaining the privacy of sensitive data on public blockchains. Businesses require confidentiality for their data, while individuals seek to safeguard their personal information. However, once data is stored on a public blockchain, it remains permanently exposed, leading to privacy breaches and compliance issues. This underscores the significance of implementing robust measures to safeguard sensitive data on blockchain platforms.

Analyzing investment and trading strategies, as well as other behavioral patterns, is possible. This could have adverse effects on businesses, impeding their growth and competitive advantage. Safeguarding metadata and preventing deductions is essential for security, which can be accomplished through the utilization of a private token. Nevertheless, there is a potential risk of misuse for money laundering. To tackle this challenge, a dual-asset system that combines public and private tokens can be deployed to ensure confidentiality while deterring illicit activities. This framework enables compliance and enforcement of business policies without the limitations of traditional metadata protection.