By ET

Imagine a “magic diary” that exists in thousands of places at once. Every time you write something in it, that entry becomes permanent—it can never be erased or changed. While this is great for security and preventing fraud, it creates a massive headache when that diary contains your private information.

This is the challenge highlighted by the EDPB (European Data Protection Board). They’ve raised concerns because the “eternal” nature of blockchain often clashes with our fundamental right to privacy under the GDPR.

The conflict boils down to two main points:

  • The Right to be Forgotten: Law says we should be able to delete our data, but blockchains are designed to never forget.
  • Data Protection: Guidelines advise against putting personal data out in the open where it stays forever.

Enter Midnight Network: The “Data Protection” Architect

Midnight Network was built specifically to solve this puzzle. Instead of seeing privacy as an obstacle, they treat it as a core feature through a philosophy called “Rational Privacy”. This approach balances the need for public transparency with the human right to confidentiality.

Here is how they turn complex laws into smart technology:

1. The “Green Light” Trick (Zero-Knowledge Proofs)

Imagine you need to prove you are over 18 to enter a club. Instead of handing over an ID card that shows your name, address, and exact birthday, you simply show a device that flashes a green light to say, “Yes, I am of legal age”.

Midnight uses this technology (called ZK-SNARKs) to verify data without actually revealing the sensitive information itself. This “selective disclosure” allows businesses to be audited without exposing everyone’s private lives.

2. The Hybrid Vault (Dual-State Ledger)

Midnight doesn’t store your personal details in a public “diary” for the whole world to see. Instead, they use a “Dual-State Ledger”:

  • Public State: A public ledger for basic transfers and proof that a transaction is valid.
  • Private State: A local, private environment where sensitive data and smart contracts are handled off-chain.

Because the raw personal data stays off-chain, it can be managed or deleted in accordance with GDPR rules. The blockchain only stores a cryptographic “proof” that the data exists, not the data itself.

Why This Matters for the Real World

Midnight is designed to make this high-level tech accessible. They allow developers to build these privacy-focused apps using TypeScript, a language many programmers already know.

The Bottom Line: You Stay in Control

At the heart of Midnight’s response to the EDPB is User Control.

  • Data remains under your thumb, and you decide what is shared and with whom.
  • You hold the encryption keys and make the disclosure choices.
  • The system is “compliant by design,” meaning privacy isn’t a bandage added later—it’s built into the very foundation of the network.

By doing this, Midnight proves that we can have the security of the future without losing our right to a private past.

Source: https://www.edpb.europa.eu/system/files/202504/edpb_guidelines_202502_blockchain_en.pdf

Photo by Claudio Schwarz on Unsplash

About the writer: ET

ET is a seasoned IT professional with over three decades in the technology sector. A blockchain enthusiast since 2021, he is now fully dedicated to driving the growth of the Midnight Network ecosystem, focusing on rational privacy and real-world adoption. His X handle: @eskotorkkola