During the recent Ethereum Innovation Summit held on November 16, 2025, prominent figure Vitalik Buterin addressed crucial topics surrounding Ethereum’s privacy framework in his keynote titled “Kohaku: Redefining Wallet Privacy.” His insights were a revealing snapshot of the progress made and the challenges still present.
Buterin began by discussing the extensive efforts Ethereum has invested in privacy and security over the last decade. He highlighted advancements like elliptic-curve precompiles from 2018, which laid the groundwork for major projects such as Tornado Cash and Railgun. He also recognized the contributions of the Privacy & Scaling Explorations team, especially their work with zkSNARK protocols, enhancing developer tools, and pioneering new applications.
On the security front, he reflected on the significant impact brought about by the 2016 DAO hack, which prompted a strong response from the community. This event stimulated the evolution of better auditing practices, the formalization of teams like SEAL, and the mainstream adoption of multisig wallets—once considered a futuristic concept.
Pushing for Enhanced Wallet Privacy in Ethereum
Despite notable advancements, Buterin pointed out that typical users continue to face hurdles in achieving genuine privacy and security when using their wallets. He stated, “Our real-world privacy solutions have not kept pace with the technical capabilities we have developed.”
He emphasized that while the foundational technology boasts impressive performance—with proofs generated in mere seconds on common devices—the user experience remains fragmented. “The last leg of user interaction is where we see most of the issues arise,” he noted, highlighting how using a privacy protocol often requires launching a separate wallet with cumbersome steps, disrupting the user’s flow.
“We are in the final stretch of refinement,” he concluded. “Now is the time to focus our energy and creativity to enhance this critical aspect.”
Buterin also reiterated his commitment to user privacy through a broader philosophical lens. He summarized his stance in three powerful assertions: “Privacy is freedom, privacy fosters order, and privacy catalyzes progress.” He argued that privacy is essential for personal autonomy and social dynamics, facilitating confidential interactions in sensitive fields like healthcare and research, effectively preventing potential societal crises.
In the realm of security, Buterin expressed concern about underestimating the risks associated with losing control over personal keys. He illustrated his point using a dual contrast: investing in DeFi yields versus the risk of total loss from a security breach. “Assets locked away yield returns, while compromised keys lead to ruin,” he explained.
He urged the Ethereum community to broaden the discussion beyond on-chain ZK-proof applications. Areas for improvement include better user interfaces that allow easy separation of wallet identities, privacy protections on data access, and network-level enhancements using technologies like mixnets. Furthermore, he mentioned that even non-financial operations necessitate robust privacy measures to maintain user confidentiality.
For improved security, Buterin called for a more nuanced access control approach where higher transaction amounts necessitate greater authorization, making it harder for unauthorized individuals to access large sums. He proposed integrating version control for user interfaces on-chain, minimizing the risk of manipulation through server breaches.
At the #Kohaku event, @VitalikButerin pushed for transformative changes in #Ethereum wallets. $eth
Watch the full segment here: pic.twitter.com/W9qeUZcipR
— Jane D. (@jane_doe) November 16, 2025
Summarizing Ethereum’s landscape in 2025, Buterin stated it boasts substantial progress in both security and privacy research, firmly rooted on the Layer 1. He acknowledged that significant improvements have been made in privacy tools compared to early iterations of platforms like Zcash. Yet, he insisted that elevating the user experience, particularly at the wallet level, remains paramount.
The Ethereum Foundation announced Kohaku on October 9 as a pioneering framework designed to empower wallets with secure, private transaction capabilities while reducing reliance on third parties. The organization asserts, “Privacy should be a standard feature. It belongs to everyone.”
At the time of this report, ETH was trading at $3,194.
