The Ethereum Foundation, which manages the development of the Ethereum network, unveiled the “Privacy Cluster,” a group of 47 industry experts dedicated to integrating privacy features into the layer-1 smart contract network.
As per a Wednesday announcement, Ethereum’s privacy cluster combines researchers, engineers, and cryptographers to create protocol-level privacy features, such as private payments and private decentralized identity solutions.
In September, the Foundation launched Privacy Stewards for Ethereum (PSE), a research and development initiative focused on privacy, and the Privacy Cluster will collaborate closely with PSE to advance privacy-preserving enhancements.
These developments include establishing zero-knowledge infrastructure for validating information without disclosing its specific contents, facilitating confidential transfers via the PlasmaFold layer-2 network, and preventing remote procedure call (RPC) nodes from transmitting user metadata.
Privacy remains a core principle of the cypherpunk movement that supports cryptocurrencies and data encryption, with renewed emphasis in the crypto community due to the growing complexity of digital surveillance techniques and their implications for individual freedoms.
Related: Vitalik criticizes EU’s Chat Control: ‘We all deserve privacy and security’
The significance of privacy escalates in 2025
The crypto industry has intensified its focus on privacy as global governments advocate for expanded financial surveillance of citizens, while artificial intelligence introduces new challenges to user privacy.
The European Union’s proposed Chat Control law, which would grant European governments unrestricted access to all messaging traffic, could accelerate the adoption of Web3 alternatives as users seek greater privacy and control over their data.
Ethereum co-founder Vitalik Buterin has called on the crypto community to “resist Chat Control,” warning about the risks of data misuse and the potential for sensitive user information to be compromised through hacks.
“You cannot ensure societal security by making individuals insecure. We all deserve privacy and security, free from hackable backdoors for our private communications,” Buterin stated.
Data stored on centralized servers presents an enticing target for hackers and cybercriminals, according to David Holtzman, a former military intelligence officer and chief strategy officer of the Naoris decentralized security protocol, in comments to Cointelegraph.
This week, Discord, an online communication platform, became the focus of hackers who accessed a database containing user age verification photos, including government-issued IDs and passports.
The hackers are attempting to extort the platform, threatening to release the data of approximately 2.1 million users if their ransom is not met.
Magazine: EU’s privacy-eroding Chat Control bill postponed — but the struggle continues
