The Midnight Foundation, an organization dedicated to advancing Midnight, a fourth-generation blockchain built for rational privacy, today announced its partnership with Creditcoin, a foundational L1 blockchain revolutionizing real-world asset financing, to research infrastructure that would allow people to prove they are humans – not AI – through financial history, without sacrificing privacy or exposing sensitive financial information.
With the recent boom in generative AI, identity fraud has seen a huge spike in highly-credible digital forgery. According to Entrust’s 2025 Identity Fraud Report, generative AI now accounts for 57% of all document fraud – a 244% increase over the previous year.
Midnight and Creditcoin will explore how Decentralized Identity (DID) and Onchain Credit Reputation create a longstanding record of human economic behavior directly on the blockchain that can distinguish humans from non-human entities.
“AI is becoming increasingly powerful, and that innovation is important to technological advancements as a whole, but at the same time, we cannot allow AI to erode the trust we are working so hard to bring to the digital world,” said Fahmi Syed, President of the Midnight Foundation. “Verification and privacy can absolutely coexist as long as users have the proper cryptographic tools. Our work with Creditcoin shows that we don’t have to choose between technological progress and protection."
A survey from gov.uk demonstrates the current usage of digital identity and showcases the desire and importance of privacy-preserving technology, furthering the need for digital identity as it currently stands, to be decentralized. While 44% of respondents said that they had used a digital identity service at some point in their lives, 79% of those respondents noted that privacy and security are the two most important factors to consumers.
Midnight’s technology allows individuals to provide statements of economic actions without choosing to compromise privacy. For example, an individual could prove they have a credit history spanning three years without revealing specific loan amounts or demonstrate consistent repayment behavior without exposing which merchants they have worked with. The overall goal is to prove the user is a real person with genuine economic relationships and history, all while maintaining control over sensitive financial data.
“There are billions of people worldwide who have been excluded from traditional financial systems and we believe that our research with Midnight can help open new doors to the global digital economy,” said Tae Oh, Founder of Creditcoin. “We believe we have the concept of proving true, human identity, without ever having to give up financial sovereignty or privacy, which is clearly so important to a large number of people. We are trying to build an inclusive future where someone’s digital existence works for them and not against them.”
The clear desire for decentralized identity reflects the accelerating global demand for secure, user-controlled, privacy-preserving solutions. Forecasts show that the market is expected to reach over $102 billion by 2030, up from $1.1 billion in 2023.
For updates on the research and findings from Midnight and Creditcoin, visit https://midnight.network/ or follow on X.