The new initiative will bring together Ethereum’s top cryptographers and engineers under a unique privacy framework.
The Ethereum Foundation (EF) announced the formation of a new group of 47 researchers, engineers, and cryptographers who will work together to make Ethereum’s Layer 1 infrastructure more secure and private.
According to analysts, this structural change shows the institution’s seriousness about adding privacy features directly to the Ethereum ecosystem, moving it from a side project to a main development priority.
Ethereum Privacy Framework Extension
In an October 8 blog post, EF noted that the “Privacy Cluster” integrates several ongoing projects under one roof, including the long-standing efforts of the Privacy & Scaling Explorations (PSE) team.
PSE’s portfolio already includes more than 50 open source research projects, such as Semaphore for anonymous signaling, MACI for private voting, zkEmail for secure communications, and TLSNotary for verifiable web interactions.
Igor Barinov will be responsible for the new cluster, and Andy Guzman will still be in charge of PSE, which will focus on early-stage research and development. The group’s goal is to make private transactions, identity verification and institutional operations safer and easier to use.
Some of the most important projects are private reads and writes, which allow users to perform private actions on the blockchain; Private Proving, for verifiable proof without data exposure; and the Institutional Privacy Task Force (IPTF), which connects regulatory compliance with on-chain functionality. Another tool that stands out is the Kohaku Wallet SDK, which adds privacy-preserving cryptography for everyday use.
The announcement comes just weeks after Ethereum developers detailed the Fusaka upgrade, which will be available on mainnet on December 3, saying it will increase the amount of data that can be sent and received as well as the capacity of Layer 2 chains, which are essential for scalable privacy.
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Ethereum’s scalable security and value proposition
In its latest blog, the EF insisted that privacy research has been part of Ethereum’s DNA since 2018. Given that the network processes billions of dollars every day, the foundation says it is important to keep the information of people, institutions, and developers private in order to maintain digital trust.
The announcement also comes at a time when more and more institutions are getting involved in Ethereum. Some observers have suggested that the success of Grayscale’s new ETH staking ETF and the growing number of companies creating ETH treasuries mean that there is now greater scrutiny of Ethereum’s regulatory compliance and data protection, with the IPTF’s work likely gaining importance in these areas.
Meanwhile, on the market, the world’s second-largest crypto asset was trading at almost $4,400 at the time of writing. Analysts believe this could reach $13,000 if current market trends continue, with blockchain security and privacy potentially affecting both adoption and investor confidence.
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