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Technology
15 April 2025

Vitalik Buterin Advocates For Privacy In Web3 Development

Ethereum co-founder highlights risks of centralization and calls for privacy-preserving technologies

Ethereum co-founder Vitalik Buterin has made a strong case for prioritizing privacy in the development of web3 technologies, emphasizing the growing need for individuals to protect their personal information from potential misuse by governments and corporations. In a blog post published on April 14, 2025, titled "Why I Support Privacy," Buterin expressed his concerns regarding the risks associated with centralization and transparency in today’s digital landscape.

Buterin argues that the preservation of individual privacy is becoming increasingly critical, especially as it can no longer be assumed that governments and corporations operate with good intentions. He pointed out that the idea of a transparent yet fair society, where privacy concerns are minimal, is based on what he described as "overly-optimistic assumptions." According to Buterin, these assumptions include the belief that global political leaders will act in the best interest of their citizens and that societal norms will continue to evolve positively.

“Today, there is no single major country for which the first assumption is broadly agreed to be true, and quite a few for which it’s broadly agreed to be false,” Buterin stated. He highlighted a concerning trend of cultural regression, where tolerance appears to be diminishing rather than improving.

To bolster Ethereum’s privacy features, Buterin suggested the increased use of privacy-preserving technologies, notably zero-knowledge proofs (ZK proofs) and the platform’s recently launched privacy pools. ZK proofs allow users to verify information without revealing the underlying data, thus enhancing privacy while maintaining transparency regarding transactions.

Buterin’s advocacy for privacy does not simply stem from theoretical concerns; he also reflected on his personal experiences with privacy intrusions due to his prominence in the tech community. He noted that privacy is essential for individuals to live their lives according to their personal goals without constantly balancing their private needs against public scrutiny. “Privacy gives you the freedom to live your life in a way that best suits your personal goals and needs, without having to constantly balance every action between ‘the private game’ and ‘the public game,’” he explained.

In discussing privacy, Buterin addressed the contentious issue of government backdoors into computer systems. He asserted that allowing such access is "risky" and poses numerous threats, including unauthorized data usage and hacking. He pointed out that authorities already possess more information than ever before, even without requiring warrants, which raises significant concerns about the potential for abuse.

“The risk of misuse by authorized parties, including illegally selling the data, hacking, and the possibility of political regimes changing, making the data usable against individuals, cannot be ignored,” Buterin warned. He advocates for a model in which data is maximally held by users themselves, utilizing cryptographic methods to enable the aggregation of useful statistics without compromising individual privacy.

Buterin believes that decentralized blockchain networks can play a vital role in safeguarding privacy against the encroachment of governmental and corporate interests. He elaborated on the capabilities of programmable cryptography techniques like ZK proofs, likening them to "Lego bricks for information flow." This analogy underscores the modularity and flexibility of these technologies in controlling who can access specific pieces of information.

For instance, Buterin provided an example where an individual could prove they possess a Canadian passport and are over 18 without disclosing any additional personal information. This capability illustrates how privacy can be maintained while still allowing for necessary verifications.

Moreover, Buterin highlighted the potential of Ethereum’s privacy pools to enhance user privacy while ensuring that assets are not linked to illicit activities. He explained that users could demonstrate their coins originated from legitimate sources without exposing themselves to unnecessary scrutiny or risk.

As new technologies emerge, Buterin noted that the risks associated with centralized data collection are magnified, particularly with advancements in artificial intelligence. He warned that future innovations, such as brain-computer interfaces, could further exacerbate privacy concerns.

In his blog post, Buterin also debunked long-held beliefs advocating for transparency, stating that the assumptions underpinning these views have proven to be misguided. He emphasized that the expectation that governments would become more benevolent and that society would evolve towards greater tolerance has not materialized.

Instead, Buterin sees a pressing need for robust privacy measures to safeguard individuals in this changing landscape. He believes that technologies such as Zero-Knowledge (ZK) proofs and fully homomorphic encryption (FHE) offer promising avenues for addressing privacy and identity challenges in the blockchain space.

FHE allows computations to be performed on encrypted data without exposing the data itself, further enhancing security and privacy. Buterin suggested that as these technologies develop, they will enable solutions that protect user privacy without compromising security.

In conclusion, Vitalik Buterin’s insights underscore the critical importance of prioritizing privacy in the web3 era. As the digital landscape continues to evolve, developers must embrace innovative technologies to protect individuals’ data from potential misuse, ensuring that the foundational principles of decentralization and individual freedom are upheld.