The Ethereum Foundation, which manages the development of the Ethereum network, has introduced the “Privacy Cluster,” comprising 47 experts from the blockchain sector aimed at enhancing privacy features for the layer-1 smart contract network.
This privacy cluster unites researchers, engineers, and cryptographers to create protocol-level privacy features such as private payments and private decentralized identity solutions, as detailed in a Wednesday announcement.
In September, the Foundation launched Privacy Stewards for Ethereum (PSE), a privacy-centric research and development initiative, and the Privacy Cluster will collaborate closely with PSE to implement privacy-focused advancements.
These privacy-centered innovations encompass the development of zero-knowledge infrastructure, which verifies information without exposing its contents, confidential transactions using the PlasmaFold layer-2 network, and measures to stop remote procedure call (RPC) nodes from transmitting user metadata.
Privacy is crucial to the cypherpunk ethos that supports cryptocurrencies and data encryption, drawing renewed attention in the crypto community due to escalating digital surveillance methods and their impact on personal freedom.
Related: Vitalik condemns EU’s Chat Control: ‘We all deserve privacy and security’
The significance of privacy increases in 2025
The crypto industry is refocusing on privacy as global governments intensify financial surveillance on citizens, while artificial intelligence introduces new risks to user privacy.
The European Union’s proposed Chat Control law, which would grant European governments unrestricted access to all messaging traffic, may propel the adoption of Web3 alternatives as users seek greater privacy and control over their data.
Ethereum co-founder Vitalik Buterin has urged the crypto community to “oppose Chat Control,” cautioning against the potential misuse of collected data or the exposure of sensitive user information due to hacks.
“You cannot make society secure by making people insecure. We all deserve privacy and security, without inevitably hackable backdoors, for our private communications,” Buterin stated.
Data stored on centralized servers become attractive targets for hackers and cybercriminals; David Holtzman, a former military intelligence expert and chief strategy officer of the Naoris decentralized security protocol, told Cointelegraph.
On Wednesday, Discord, an online communication platform, was attacked by hackers who compromised a database containing user age verification photos, including government-issued IDs and passports.
The hackers are attempting to extort the platform and have threatened to disclose the information of approximately 2.1 million users if their ransom is not met.
Magazine: EU’s privacy-destroying Chat Control bill postponed — but the fight continues
