The Ethereum Foundation has introduced a new Privacy Cluster dedicated to building out privacy features across the network. This shows a clear push to make privacy part of Ethereum’s foundation rather than a secondary concern.

The cluster brings together 47 specialists, including engineers, researchers, cryptographers, and coordinators. It will be led by Igor Barinov, the founder of Blockscout, who has a long history within the Ethereum ecosystem.

Working Side by Side with Other Teams

Rather than operating as a silo, the Privacy Cluster will coordinate closely with other Foundation groups. One of its key partners will be the Institutional Privacy Task Force, which focuses on aligning Ethereum’s privacy developments with regulations worldwide.

The Ethereum Foundation is proud to build Kohaku, a set of primitives that enables wallets to be secure and to process private transactions while minimizing dependencies on trusted third parties.

Privacy is normal. Privacy is for everyone. https://t.co/m3rb5Ucszv

— Ethereum Foundation (@ethereumfndn) October 9, 2025

By collaborating instead of isolating, the cluster aims to balance technical innovation with compliance.

Kohaku Wallet and SDK Ready to Debut

In parallel with the cluster’s launch, the Foundation is preparing Kohaku, a privacy-focused wallet and software development kit. It is expected to be unveiled at Devcon later this year.

Kohaku’s goal is to give wallets built on Ethereum the ability to handle private transactions with fewer dependencies on intermediaries. Users would gain more direct control over how their information is handled.

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A Wide Range of Privacy Work Ahead

The cluster’s scope covers many areas. It will focus on private payments, confidential identity systems, zero-knowledge infrastructure, and private reads and writes at the protocol level. It may develop tools for anonymous signaling, private voting systems, and stealth addresses.

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Another area of interest is anonymizing RPC node behavior to prevent user metadata from being exposed.

Current Weaknesses in Ethereum’s Privacy Layer

Privacy on Ethereum still faces notable gaps. For example, many wallets expose IP addresses when interacting with centralized nodes. Unless users operate their own nodes or route traffic through privacy tools like Tor, this data remains vulnerable.

Privacy experts have argued that improvements need to happen at multiple layers, from contracts to infrastructure, to achieve meaningful protection.

Regulatory Scrutiny Shapes the Timing

This new cluster arrives during intense discussions about blockchain privacy. Regulators have been increasing pressure on crypto networks, and privacy tools have become a focal point.

Vitalik Buterin has previously opposed laws that would require scanning encrypted communications, framing privacy as essential to user rights. The cluster could strengthen Ethereum’s position in these debates by offering privacy features that remain compatible with regulatory expectations.

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A Signal of Where Ethereum Is Heading

Creating a dedicated cluster shows that the Foundation is elevating privacy to a central priority. If the team can deliver scalable and practical solutions, Ethereum could become a leader in privacy-friendly blockchain development.

The cluster’s progress will reveal how committed the network is to making confidentiality a core feature rather than an afterthought.

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