Balaji Srinivasan says crypto has moved into a new privacy era, powered by zero-knowledge proofs. He outlined crypto’s evolution from proof-of-work to smart contracts and now privacy-focused systems. Zcash and Cardano’s Midnight reflect growing interest in privacy-based blockchain networks.
The crypto industry entered a privacy era in December 2025, according to comments made by Balaji Srinivasan in Dubai. Speaking at the Binance Blockchain Week, he explained how crypto moved from proof-of-work to smart contracts. Crypto is now focused on privacy, driven by zero-knowledge proofs that protect user data. The privacy era idea connects closely with existing privacy-focused networks.
Zcash is one of the earliest examples; it uses zero-knowledge proofs to hide transaction details. Users can send funds without revealing addresses or amounts, while verification remains possible.
Recent market activity suggests renewed interest in privacy assets. Cardano’s Midnight token, NIGHT, rose 6.53% in 24 hours, with trading volume reaching $111.93 million. This level is below Zcash, which recorded $679.52 million in transaction volume during the same period, and ZEC gained 13.81% over that time.
Midnight is a privacy-focused sidechain developed by Input Output Global. It aims to add private transactions and smart contracts to the Cardano ecosystem. The design avoids changes to Cardano’s main structure. Community support and public remarks from Charles Hoskinson helped draw attention to the project.
It is worth noting that Zcash and Midnight use similar cryptographic ideas but differ in structure. Zcash operates as a standalone privacy network. Midnight is built to work alongside an existing chain. Both highlight how privacy tools are gaining relevance across different models.
The privacy era could influence how developers and users approach blockchain systems. Privacy tools allow sensitive data to remain hidden while transactions stay valid. This balance may support wider use in finance and identity systems.
Srinivasan did not predict immediate results from this shift. His comments framed privacy as a long-term direction. He suggested future systems may encrypt most user activity by default. Zero-knowledge proofs make this possible without breaking verification.
Market data indicate a growing interest in privacy-focused projects. Increased trading activity suggests investors are watching these developments closely.
Developers may also explore privacy features to meet regulatory and user needs. Security and scalability remain important concerns. While privacy does not replace them, it adds another layer to system design. Notably, the privacy era reflects an effort to protect users while keeping open networks functional.
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