The Ethereum Foundation has unveiled a transformative approach to privacy with the launch of the “Privacy Stewards of Ethereum” initiative, which replaces the previous “Privacy & Scaling Explorations” team. This new program aims to address tangible privacy issues rather than solely focus on technological research. This announcement comes amid rising governmental scrutiny over cryptocurrency transactions, particularly from the U.S. Treasury Department, which is considering proposals for mandatory identity checks within smart contracts. This move has sparked considerable pushback from the cryptocurrency community.
The initiative centers around a three-track privacy system aimed at fulfilling diverse privacy needs across Ethereum. The first track, Private Writes, is dedicated to facilitating private transactions that are as efficient and cost-effective as standard ones. The team is in the process of developing PlasmaFold, an experimental Layer 2 network tailored for private transfers. This innovative system allows servers to handle block proofs while users maintain balance proofs on their devices, enabling instantaneous exits without cumbersome procedures.
The second track, Private Reads, addresses the challenges of data leaks that occur during user interactions on Ethereum. Traditional Remote Procedure Call (RPC) services can inadvertently expose sensitive information, such as IP addresses and account interests. To mitigate this issue, the Privacy Stewards team has initiated a working group dedicated to evaluating solutions that protect user data against leaks.
The third track, Private Proving, is focused on simplifying and reducing the costs associated with generating zero-knowledge proofs on everyday devices. This “prove anywhere” strategy aims to empower users to create privacy proofs independently, negating the need for high-powered computers or reliance on third-party services.
The team has outlined immediate objectives for the next three to six months, with plans to present a proof-of-concept for PlasmaFold at Devconnect, scheduled for November 17, 2025. Other short-term goals include releasing a “State of Private Voting 2025” report and advancing the development of confidential decentralized finance (DeFi) protocols that balance privacy with compliance for institutional clients. Additionally, the team intends to implement privacy-preserving wallet features and explore identity solutions utilizing zero-knowledge proofs.
Drawing inspiration from Ethereum co-founder Vitalik Buterin, the roadmap incorporates insights from the Silviculture Society, the previous Privacy & Scaling Explorations team, and independent researcher Oskar Thorén. This collaborative effort underscores the Foundation’s commitment to comprehensive solutions rather than isolated projects.
Sam Richards, leader of the Privacy Stewards team, articulated the urgency of their mission by stating that Ethereum must evolve into a core infrastructure for global digital commerce, identity, collaboration, and the internet of value. He affirmed that achieving this vision is contingent on prioritizing private data, transactions, and identity.
The Foundation has ambitious plans to implement a native Layer 1 zero-knowledge Ethereum Virtual Machine (zkEVM) by the end of 2025, potentially embedding privacy features at Ethereum’s foundational layer.
The industry response to these privacy enhancements has been overwhelmingly positive. Cathie Wood, founder of ARK Invest, has publicly endorsed the initiative, highlighting its significance in bolstering Ethereum’s position within the institutional market. This privacy roadmap may act as a crucial driver for Ethereum’s market performance, akin to previous upgrades like Ethereum 2.0, which significantly boosted price appreciation and institutional interest in the platform.
The announcement responds to escalating concerns regarding digital financial surveillance as the mainstream adoption of cryptocurrency grows. Although the importance of privacy has always been fundamental to the cypherpunk ethos behind cryptocurrencies, the increased governmental focus amplifies these concerns.
For users, the Privacy Stewards initiative signifies a paradigm shift toward defaulting privacy features, offering benefits such as:
- Seamless private transfers comparable to regular transactions
- Enhanced protection for personal data during application interactions
- Confidential voting mechanisms in decentralized governance
- Anonymous browsing of blockchain data
- Secure identity verification without disclosing personal information
These advancements are anticipated to enhance Ethereum’s appeal to both individual users and institutions that prioritize data protection and regulatory compliance.
Looking ahead, the Privacy Stewards initiative represents a pivotal moment for Ethereum as it navigates heightened regulatory scrutiny while striving to maintain its status as the leading smart contract platform. The effectiveness of this privacy roadmap may ultimately dictate whether Ethereum remains a cornerstone of global digital commerce or cedes ground to competitors with a stronger focus on privacy. The Foundation’s proactive efforts to address specific privacy issues, rather than merely indulging in theoretical research, signal a mature and responsive approach to blockchain development amidst evolving global regulatory landscapes.
