On April 11, 2025, Ethereum co-founder Vitalik Buterin unveiled a comprehensive plan aimed at enhancing privacy on the Ethereum network, a topic that has sparked heated discussions within the crypto community. Buterin's roadmap proposes several innovative strategies to incorporate privacy tools into Ether (ETH) wallets and to implement privacy-enhancing features throughout the Ethereum ecosystem.
The motivation behind this initiative stems from ongoing concerns about user privacy on the blockchain. As it stands, the Ethereum network is known for its transparency, which, while fostering trust, also exposes users to potential surveillance and exploitation. In a world where every transaction is etched into the public ledger, the need for privacy has become paramount.
Buterin argues for the integration of privacy-enhancing systems such as Railgun or Privacy Pools into existing wallets. He believes that when users send funds using these wallets, they should have the option to "send from shielded balance," which would anonymize the transaction. Ideally, this option should be enabled by default, allowing users to engage in private transactions without having to download a separate "privacy wallet." He stated, "Users should NOT have to download a separate ‘privacy wallet.’" This approach aims to simplify the user experience while ensuring that privacy is not an afterthought.
In addition to wallet improvements, Buterin advocates for significant changes in the decentralized finance (DeFi) and decentralized application (DApp) landscapes. He suggests limiting each application to a single address, a move that he acknowledges may require "significant convenience sacrifices." However, he believes this is the most practical approach to removing public links between user activities across different applications. He likens the user experience to depositing funds from one chain to another in cross-chain interoperability systems.
Buterin's roadmap also emphasizes the need for technical improvements within the Ethereum protocol. He proposes the implementation of fork-choice enforced inclusion lists (FOCIL) and the Ethereum Improvement Proposal (EIP) 7701. EIP-7701 aims to facilitate the operation of privacy protocols without the need for relays or public broadcasters, thereby streamlining the development and maintenance of these protocols. FOCIL, on the other hand, is designed to prevent the censorship of transactions, including those that are privacy-preserving. This is crucial, as anonymized transactions face a heightened risk of censorship attempts.
Buterin's short-term solution to address the privacy limitations of current remote procedure call (RPC) systems involves the implementation of a trusted execution environment (TEE). This secure area within a processor ensures that code and data are protected, enabling users to interact with RPC nodes while receiving stronger assurances that their private data is not being collected. As a long-term solution, he advocates for replacing TEEs with a private information retrieval (PIR) system, which would allow users to retrieve blockchain data without revealing which specific data is being accessed.
Furthermore, Buterin suggests that wallets should connect to multiple RPC servers and use a separate RPC for each DApp, potentially employing a mixnet—a privacy-enhancing technology designed to obscure metadata. This would further enhance user privacy and security.
On the same day, discussions among Ethereum developers were reignited, particularly in light of past events, such as the U.S. government's sanctions on the crypto mixing service Tornado Cash in 2022. Crypto security researcher Pascal Caversaccio highlighted the necessity for a more private Ethereum, stating, "Publicly accessible transaction graphs allow anyone to trace the flow of funds between accounts, and balances are visible to all participants in the network, undermining financial privacy." Caversaccio's insights have prompted Ethereum developers to explore ways to make the network inherently private.
Caversaccio proposed the encryption of Ethereum's public mempool, where transactions are sent before they are permanently recorded. He also suggested using zero-knowledge cryptography and new transaction formats to ensure confidentiality. He emphasized that privacy must not be an optional feature but rather the default state of the network.
Buterin responded to these discussions by proposing a focus on several key areas: enhancing privacy for on-chain payments, anonymizing on-chain activities within applications, making network communication anonymous, and privatizing on-chain reads. He reiterated the importance of integrating third-party privacy features into the core network.
As Ethereum prepares for its next major upgrade, Pectra, which is set to launch soon, the discussions surrounding privacy enhancements are timely. While Pectra may not focus primarily on privacy, the subsequent upgrade, Fusaka, is still in the planning stages, leaving room for potential privacy-related improvements.
In summary, Vitalik Buterin's roadmap represents a significant step towards addressing the privacy concerns that have long plagued the Ethereum network. By implementing these recommendations, Ethereum could transition from a partially transparent framework to one that prioritizes user anonymity and security. As the crypto community grapples with the implications of privacy in a transparent world, Buterin's vision may pave the way for a more secure and private blockchain experience for all users.
