Ethereum 2025-2026 Privacy Roadmap: The Dawn of Private Infrastructure

## Privacy Becomes Official

For years, privacy on Ethereum was an afterthought, something left to third-party protocols and layer-2 solutions. Developers experimented with mixers like Tornado Cash, built privacy layers on top of the main chain, and created complex workarounds that required technical expertise to use.

That changed in September 2025.

The Ethereum Foundation made privacy an official part of the roadmap through the **Privacy Stewards of Ethereum (PSE)** initiative, formerly known as Privacy & Scaling Explorations. This is a coordinated, multi-year effort to make privacy a core feature of Ethereum, from the base layer protocol to the wallet interface.

As Vitalik Buterin stated at Devcon 2025, the network has strong security and privacy research and solid layer-1 security, but still has not leveled up the last mile, the wallets and apps people actually use.

The technical capabilities exist. The cryptography works. Zero-knowledge proofs have been battle-tested for years. But the user experience remains broken. People juggle multiple seed phrases, install separate privacy wallets, and often give up entirely, falling back to centralized exchanges.

Sam Richards, PSE member, explained that Ethereum is on the path to becoming the settlement layer for the world, but without strong privacy, it risks becoming the backbone of global surveillance rather than global freedom.

## The Three Pillars of Ethereum Privacy

The PSE initiative focuses on three fundamental capabilities that will persist for the next few years: **private writes**, **private reads**, and **private proving**.

### 1. Private Writes

**The Goal:** Enable confidential on-chain activities without revealing the action to the world.

**Key Technologies:**

- **Stealth Addresses:** Recipients can receive funds without exposing their public address. A sender creates a one-time address derived from a shared secret, so only the recipient can spend the funds.

- **Homomorphic Encryption:** Perform computations on encrypted data without decrypting it. This allows smart contracts to process confidential information while keeping the data itself hidden.

- **Privacy Pools:** Enable selective disclosure. Unlike mixers that hide everything from everyone, Privacy Pools let you prove you are not mixing funds with sanctioned addresses while maintaining privacy from the general public.

**Use Cases:** Anonymous governance voting, private DeFi interactions, confidential DAOs, and enterprise treasury operations.

The team is actively developing **PlasmaFold**, an experimental Layer 2 design aimed at supporting private transfer features, with a proof of concept that debuted at Devconnect on November 17, 2025, in Argentina.

#### PlasmaFold: The Technical Breakthrough

PlasmaFold is a novel Layer 2 designed through a hybrid architecture: an operator generates proofs server-side for honest block construction, while users maintain balance proofs on their own devices.

This separation of concerns enables instant, non-interactive exits via balance proofs, while block proofs handle most validations, minimizing users' costs and eliminating the need for complex exit games.

This architecture makes private and public transactions equally efficient. You do not pay extra gas for privacy. You do not wait longer for confirmations. Privacy becomes the default, not an expensive upgrade.

PlasmaFold L2 is designed as a Layer 2 focused on secure, confidential transfers using zero-knowledge primitives and optimistic privacy constructs.

**Timeline:** Public testnet expected Q1 2026, security audits Q2 2026, mainnet launch mid-2026.

### 2. Private Reads

**The Goal:** Query Ethereum applications securely without revealing your intent or identity.

**The Problem:** Every time you check your balance or interact with a dApp, you leak information. RPC providers can see your IP address, which addresses you control, what tokens you hold, and your activity patterns.

**Solution Technologies:**

- **ORAM (Oblivious RAM):** Access data without revealing which data you accessed. The server cannot tell the difference between querying address A or address B.

- **Privacy-Preserving RPCs:** New RPC architectures that blind queries before sending them to providers.

- **Client-Side Verification:** Your wallet verifies responses using cryptographic proofs, eliminating trust in RPC providers.

PSE has convened a private RPC working group to evaluate solutions, since typical RPC calls can leak personal information like IP addresses or which accounts a user is interested in.

**Timeline:** Q1 2026 first privacy-preserving RPC implementations go live, Q2 2026 standards finalized, Q3-Q4 2026 client-side verification becomes standard.

### 3. Private Proving

**The Goal:** Make zero-knowledge proof generation fast, cheap, and accessible on everyday devices.

The team is working on projects to make it easier and cheaper to generate zero-knowledge proofs on everyday devices, dubbed the "prove anywhere" initiative.

**Key Innovations:**

- **zkTLS:** Prove facts about web data without revealing the underlying information. Prove your credit score is above 700 without showing your actual score.

- **Modular ZK Wallets:** Plug-and-play privacy components. Need stealth addresses? Install the module. This lowers the barrier to entry.

- **Distributed Proving:** Split proof generation across multiple devices. Ten people each spend one minute instead of one person taking ten minutes.

**Timeline:** Q4 2025 zkTLS enters production, Q1 2026 mobile proving becomes viable with sub-30-second proof times, Q2 2026 distributed proving networks launch, Q3-Q4 2026 modular ZK wallets become standard.

## The Privacy Cluster: 47 Experts Building the Future

The Ethereum Foundation has expanded its privacy efforts, forming a new Privacy cluster composed of 47 of the top researchers, engineers, coordinators and cryptographers in the blockchain industry, coordinated by Igor Barinov.

The Privacy Cluster includes:

- **PSE (Privacy Experience):** Improving privacy protocol UX and making privacy accessible.
- **Institutional Privacy Task Force (IPTF):** Bridging institutions and Ethereum by translating regulatory requirements into privacy specifications.
- **Kohaku:** A new reference implementation of a privacy-preserving wallet and open-source wallet SDK.

## Key Projects Already in Motion

The Foundation has supported privacy research since 2018 through the PSE team, which has built over 50 open-source R&D projects and released core primitives.

- **Semaphore:** Zero-knowledge identity framework for anonymous signaling and voting.
- **TLSNotary:** Pioneered zkTLS to prove facts about web data with cryptographic guarantees.
- **Zupass:** Privacy-preserving event ticketing used successfully at Devcon 2025.
- **Anon Aadhaar:** Private national ID verification that proves Indian citizenship without exposing ID documents.
- **MACI:** Collusion-resistant private voting for DAOs.

## The Regulatory Win-Win

Privacy and compliance are not opposites. Zero-knowledge proofs enable selective disclosure.

The roadmap points to selective disclosure: consensus, settlement, and proof verification on Ethereum remain transparent and verifiable, while user data, fine-grained application logic, and linkages move behind zk-proofs and encrypted state.

With zero-knowledge proofs, you can prove you are not on a sanctions list without revealing your identity, demonstrate tax compliance without exposing your trading history, and verify accredited investor status without sharing financial details.

The IPTF is working with regulatory bodies in the US, EU, and Asia to define standards for selective disclosure.

## Kohaku: Where Everything Comes Together

Kohaku is best understood as Ethereum's new privacy-and-security toolkit for wallets, an open-source framework from the Ethereum Foundation that includes a modular software development kit plus a reference wallet.

The design aims to enhance user privacy effortlessly by incorporating established tools such as Railgun and Privacy Pools, while offering functionalities like multiple keys and risk-based controls for substantial transfers, all without the need for users to manage additional seed phrases.

Buterin explained current problems: using a privacy protocol requires a separate seed phrase with no multi-sig option, it takes about five clicks to do a private send and withdraw, and public broadcasters are unreliable.

Kohaku changes this. Privacy becomes one click. You use the same seed phrase for public and private transactions.

Key features include private sending and receiving, hiding IP addresses, separate accounts for each DApp, P2P transaction broadcasting that bypasses normal RPC servers, and social recovery options using tools such as ZK Email or Anon Aadhaar.

The wallet is being built as both a browser extension and a reference implementation for developers who want to integrate privacy primitives directly into their applications.

### Kohaku Release Timeline

- **December 2025:** Private alpha for developers and power users
- **Q1 2026:** Public beta launch with SDK documentation finalized
- **Q2 2026:** Major wallets integrate Kohaku SDK (MetaMask, Rainbow, Coinbase Wallet)
- **Q3-Q4 2026:** Kohaku becomes the standard for privacy-first wallets

## Market Impact and Institutional Adoption

Industry leaders have shown strong support for these privacy enhancements, with Cathie Wood, founder of ARK Invest, publicly endorsing the initiative and highlighting its importance for Ethereum's institutional market dominance.

For institutions, privacy is essential for how businesses operate and make decisions, it lets them choose who to work with, how to compensate teams, and how to structure internal processes, all while meeting security and compliance standards required to adopt public blockchains.

**Real-world impact:** UBS has tokenized $1.7 billion in private credit on zkSync. The 2026-2027 roadmap targets trillions of dollars in tokenized assets, including real estate, private equity, bonds, and commodities.

## The Path Forward: 2026-2027

### December 2025
PlasmaFold testnet goes live. Kohaku private alpha launches.

### Q1 2026
Private RPC standards finalized. zkTLS production applications launch. Kohaku public beta.

### Q2 2026
PlasmaFold security audits complete. Mobile proving becomes viable. Major wallets integrate Kohaku SDK.

### Q3 2026
PlasmaFold mainnet launch. Layer 1 privacy features begin rolling out. Institutional Privacy Task Force delivers first compliance frameworks.

### Q4 2026
Privacy becomes standard. Regulatory clarity emerges. Enterprise adoption accelerates.

### 2027
Layer 1 privacy reaches maturity. Optional private mode becomes available on Ethereum mainnet. Privacy infrastructure is complete.

## The Bottom Line

Just as HTTPS became the default for websites, privacy is becoming the default for blockchain, moving from experimental research to concrete problems and improved ecosystem outcomes.

The Ethereum Foundation's commitment to privacy rests on a simple principle: credible neutrality, security, and openness are much more valuable to humanity when paired with privacy.

Without privacy, blockchain becomes a surveillance tool. With privacy, blockchain becomes what it was always meant to be: a permissionless, censorship-resistant, globally accessible financial infrastructure. One where you control your data, protect your identity, and transact with confidence.

The roadmap is ambitious. The next 18 months will determine whether Ethereum can deliver on its promise. Success depends on execution, but the technology is ready, the teams are in place, and the market is demanding it.

**Next in this series:** We will explore Kohaku in depth, Ethereum's revolutionary privacy-first wallet framework bringing these concepts to end users.

Are you building with privacy in mind? What privacy features are most critical for your use case?