Ethereum’s Quest for Enhanced Wallet Privacy: Insights from Vitalik Buterin
At the Ethereum Cypherpunk Congress 2, held on November 16, 2025, Vitalik Buterin delivered a compelling keynote titled “Kohaku: Wallet Privacy On Ethereum.” In his address, Buterin critically assessed Ethereum’s current state concerning privacy, asserting that while cryptographic techniques are effective, the user experience requires significant improvements.
The Evolution of Ethereum’s Privacy Infrastructure
Buterin began by highlighting Ethereum’s decade-long commitment to advancing privacy and security. He referenced the introduction of elliptic-curve precompiles in 2018, foundational to protocols like Tornado Cash and Railgun. Furthermore, he acknowledged the work of the Privacy & Scaling Explorations team on zkSNARK protocols and application-layer innovations.
Advertisement Banner
Security Milestones and Challenges
On the security front, Buterin reflected on the 2016 DAO hack as a pivotal moment that strengthened the ecosystem, leading to better auditing, the formation of security teams like SEAL, and the widespread adoption of multisig wallets, once a far-off vision in 2015.
Advancing Wallet Privacy: The Need for User-Friendly Solutions
Despite these advancements, Buterin emphasized that everyday users still face challenges in achieving meaningful privacy and security. He argued that while the core privacy stack has matured, allowing quick proof generation on laptops and phones, the user experience remains problematic, particularly at the wallet level.
He explained that engaging with privacy protocols demands a separate seed phrase, and the absence of a multi-sig option complicates matters. Users often need to set up distinct privacy wallets, and executing private transactions involves cumbersome steps. Additionally, the infrastructure for transaction broadcasting is fragile, as Buterin recounted his own struggles with public broadcasters, finding success only after utilizing a VPN.
Kohaku: A Vision for Comprehensive Privacy
Buterin framed Kohaku within a broader advocacy for privacy, encapsulating it in the themes of freedom, order, and progress. Privacy, he asserted, provides individuals the liberty to live on their terms, supports societal structures that protect personal information, and is crucial for data-driven fields like medicine without devolving into dystopian scenarios. Modern cryptography enables privacy-centric designs, offering tangible benefits to users.
Addressing Security through Tail Risk Management
Buterin also discussed security, focusing on managing tail risks. He contrasted potential DeFi yields against catastrophic losses, underscoring the severe consequences of losing private keys. He urged for a broader conversation on Ethereum’s privacy, moving beyond simple ZK-proof applications to include user experience enhancements, privacy of reads, network-level privacy via mixnets, and safeguarding non-financial operations.
Enhancing Security with Risk-Based Access Control
For security improvements, Buterin advocated for risk-based access control, suggesting more stringent authorizations for larger transactions. He highlighted the importance of account recovery, UI-level security, and on-chain version control for software and user interfaces, envisioning a system where UIs are immutable and on-chain, preventing server-based attacks.
Kohaku’s Role in Ethereum’s Future
During the event, Buterin spotlighted Kohaku, a novel Ethereum framework aimed at achieving genuine privacy for wallet users. This initiative, announced by the Ethereum Foundation, promises secure wallets capable of private transactions with minimal reliance on trusted third parties. Emphasizing that privacy should be accessible to all, the Foundation’s announcement underscores its commitment to this vision.
As of the current market update, Ethereum (ETH) is trading at $3,194, maintaining its position above the 100-week EMA.
Editorial Integrity at Bitcoinist
Editorial Process
At Bitcoinist, we are committed to delivering meticulously researched, accurate, and unbiased content. Our editorial process involves strict sourcing standards and rigorous reviews by our team of top technology experts and seasoned editors, ensuring our content’s integrity, relevance, and value for our readers.
