Ethereum Foundation Launches Privacy Cluster to Boost Layer-1 Privacy on Ethereum
On October 8, 2025, the Ethereum Foundation unveiled a new 47-member Privacy Cluster dedicated to enhancing privacy at the protocol level on Ethereum’s layer-1 network. This ambitious initiative responds to growing global surveillance concerns and regulatory pressures such as the European Union’s controversial Chat Control law, which many experts, including Vitalik Buterin, criticize for weakening encryption and threatening user privacy.
The Privacy Cluster aims to develop advanced zero-knowledge infrastructure and privacy tools for confidential transfers and protection of RPC metadata. Among the flagship projects are PlasmaFold, an experimental Layer-2 solution enabling confidential token transfers, and Kohaku, a privacy-preserving wallet coupled with a software development kit (SDK) to facilitate private decentralized applications.
The Institutional Privacy Task Force (IPTF) within the cluster works to harmonize regulatory compliance with users’ privacy needs, ensuring that both individual and institutional demands are met without sacrificing decentralization.
A detailed roadmap over the next three years emphasizes secure data reads and writes and private proving mechanisms. Immediate milestones include launching testnet prototypes and conducting rigorous security audits on PlasmaFold and confidential RPC designs.
This initiative marks a critical step in balancing enhanced privacy features on the Ethereum blockchain with compliance in a rapidly evolving regulatory landscape.
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