Ethereum Foundation Launches New Cluster Focused on Privacy

The Ethereum Foundation is launching a new privacy cluster, as part of plans to expand its privacy-related projects and initiatives.

The new cluster is set to include 47 researchers, engineers, coordinators, and cryptographers. It will be led by Igor Barinov, founder of open-source block explorer Blockscout and the Ethereum Layer-2 blockchain Gnosis Chain.

The privacy cluster will not operate in a silo but will collaborate with other clusters across the Foundation on projects such as the Institutional Privacy Task Force (IPTF), which works to ensure that the organization’s projects comply with privacy regulations worldwide.

Ethereum and privacy

The move comes as Ethereum has some significant privacy-focused product launches on the horizon. The Foundation recently announced the official launch of Kohaku, a privacy-centric browser wallet and SDK, which is expected to debut at EFDevcon in late November. The project aims to enable Ethereum wallets to securely process private transactions, with minimal dependencies on trusted third parties.

Many of the Foundation’s most prominent members have also been outspoken about privacy-related issues in recent weeks. Founder Vitalik Buterin took to X last week to denounce a controversial piece of potential EU legislation, the EU Child Sexual Abuse Regulation, which would enable automatic scanning of private messages for abuse material, including encrypted messages.

The news comes as interest in privacy coins more generally seems to be piquing. Privacy blockchain Zcash’s native token hit three-year highs earlier this month, with its value doubling in under a fortnight. Experts told Decrypt that endorsements from high-profile figures like venture capitalist Naval Ravikant, praising the blockchain’s privacy, may have contributed.

Is Ethereum’s ecosystem private enough?

Privacy advocates have hailed the Ethereum Foundation’s move. Harry Halpin, founder of privacy-first network infrastructure framework Nym, told Decrypt that blockchain network privacy is now becoming a more serious issue in the blockchain world.

"I'm very happy the Ethereum Foundation has finally put Vitalik's support of privacy into action,” Halpin said.

He pointed to concerns around ETH’s current suite of privacy tools, noting that popular wallets such as MetaMask can expose users’ IP address to provider ConsenSys’s infrastructure tool Infura when making transactions (unless the user employs their own Ethereum node, or tools like VPNs and the Tor browser).

This feature was controversial with the ETH community when it was revealed in 2022, though ConsenSys has since made numerous assurances about how it stores and deletes the data.

Halpin argued that the Foundation should look to Zcash’s technical implementation when it comes to privacy, and work with industry experts.