Ethereum Foundation launches privacy initiative with ambitious plans
The Ethereum Foundation made a significant announcement on September 13, 2025, unveiling its new “Privacy Stewards of Ethereum” initiative, a departure from its previous focus on “Privacy & Scaling Explorations.” This shift in strategy aims to provide practical solutions to real privacy challenges rather than just theoretical research into technology. The timing of this announcement coincides with heightened scrutiny from governments worldwide on cryptocurrency transactions, with the U.S. Treasury Department considering incorporating government identity checks into smart contracts, a move that has sparked opposition from the crypto community.
The new initiative outlines a three-track privacy system designed to address various privacy requirements on the Ethereum platform. The first track, Private Writes, is dedicated to simplifying and lowering the cost of private transactions by introducing PlasmaFold, a Layer 2 network facilitating private transfers. The system leverages a novel approach where servers manage block proofs, while users maintain balance proofs on their devices, enabling quick exits without intricate procedures. The second track, Private Reads, focuses on safeguarding user data during interactions with Ethereum by exploring solutions to shield sensitive information exposed by standard RPC services. Lastly, Private Proving aims to streamline the generation of zero-knowledge proofs on everyday devices, enabling users to produce privacy proofs without high-powered computers or external services.
Over the next 3-6 months, the Privacy Stewards team plans to present a PlasmaFold proof-of-concept at the upcoming Devconnect event in Argentina. Simultaneously, they will publish a “State of Private Voting 2025” report and develop confidential DeFi protocols to provide privacy while ensuring compliance with institutional requirements. Additionally, the team aims to introduce privacy-preserving wallet features and investigate private identity solutions through zero-knowledge proofs, enabling data verification without disclosing actual information.
The framework for this initiative draws inspiration from Ethereum co-founder Vitalik Buterin, involving input from various sources such as the Silviculture Society, the PSE team, and independent researcher Oskar Thorén. Collaboration remains a key principle for the Foundation, which prioritizes ecosystem-wide solutions over isolated projects. Sam Richards, leading the Privacy Stewards team, underscores the urgency of their mission, emphasizing that the potential for Ethereum to become a pivotal infrastructure for global digital commerce hinges on private data, transactions, and identity.
The Foundation has set an ambitious target to integrate a native Layer 1 zkEVM (zero-knowledge Ethereum Virtual Machine) by the end of 2025, positioning privacy features at Ethereum’s core. Notable industry figures, including ARK Invest’s Cathie Wood, have endorsed these privacy enhancements, recognizing their significance for Ethereum’s institutional market position. The roadmap’s potential to boost Ethereum’s market performance by attracting institutional interest aligns with a timeless concern over digital financial surveillance, heightening the appeal of privacy-compliant solutions amidst evolving regulatory landscapes.
For users, the Privacy Stewards initiative represents a fundamental shift towards default privacy features, promising seamless private transfers, safeguarded personal data in application interactions, confidential decentralized governance voting, anonymous blockchain data browsing, and secure identity verification without divulging personal details. These enhancements aim to enhance Ethereum’s appeal to individuals and institutions prioritizing data protection and regulatory adherence.
As Ethereum navigates increased regulatory attention and strives to fortify its role as a leading privacy-preserving blockchain, the Privacy Stewards initiative marks a pivotal juncture in enhancing the platform’s privacy capabilities to meet evolving industry and user demands.
