Ethereum Co-founder Calls for Rebuilding the Ecosystem Around Privacy and AI - ForkLog: Cryptocurrency, AI, Singularity, Future

# Ethereum Co-Founder Calls for Rebuilding the Ecosystem Around Privacy and AI

Ethereum developers need to rethink their approach to building applications, experimenting with new DeFi models and AI integration, without compromising fundamental principles. This was stated by the project’s co-founder, Vitalik Buterin.

I think it’s healthy for us in the Ethereum world to have a more bold and open mindset to many things, particularly on the application layer and on how we see ourselves in the world.

We should not compromise on core properties: censorship resistance, open source, privacy,…

— vitalik.eth (@VitalikButerin) March 5, 2026

According to him, the ecosystem should remain committed to resistance to censorship, open source, privacy, and security. He summarized these aspects with the acronym CROPS. At the same time, developers should be more daring in experimenting with dapp architecture.

“We must not compromise on fundamental properties. But at the application and interface level, we should be ready to step out of our comfort zone and revisit established concepts,” — the programmer wrote

Fundamentals

Buterin believes that the next wave of innovation will emerge precisely at the application level.

Privacy, which Ethereum co-founder calls the foundation of freedom, should become a key focus. To make it a core feature, a significant overhaul of the current application stack will be necessary, as it was not originally designed with confidentiality in mind.

In November 2025, the programmer introduced a privacy-enhancing tool for Ethereum called Kohaku. This open-source project creates a modular stack for developing secure wallets with enhanced privacy.

The Ethereum Foundation is also actively working in this direction. In October, the organization assembled a team of 47 specialists to improve privacy at the network’s base layer.

DeFi, Oracles, and AI

DeFi could evolve into a universal infrastructure. Buterin suggested that over time, much of decentralized finance might be reduced to futures markets built on oracles. Instead of numerous fragmented protocols, there could be a small set of basic primitives.

Oracles may also change. One idea is to generate verifiable data streams by combining cryptographic proofs with outputs from multiple large language models (LLMs) and trusted sources.

AI has the potential to transform user experience. Integrating intelligent features could reduce dependence on traditional wallet interfaces and standalone applications, replacing them with more natural interaction scenarios.

The next iteration of wallets will be closely linked to artificial intelligence, Buterin is confident. However, he advised against trusting LLMs directly for large transactions. The optimal scenario is:

“AI proposes a plan, a local lightweight client simulates it, the user sees the action and the simulation result, and manually confirms.”

Ethereum co-founder also called for a reassessment of the role of Layer 2 solutions. According to him, they should complement the core infrastructure rather than just duplicate its functionality on the side. Previously, the programmer stated that as blockchain scalability increases, the need for second-layer networks diminishes.

“It’s also about culture. For me and many others, this is an important part of what’s behind the ‘Milady story.’ Yes, it’s a silly meme. […] But the simple point is: take off your jacket and tie. And if they’re on you — be ready to grab a glass and pour wine on your chest, so you have no choice but to shed them and regain your freedom and flexibility,” — Buterin emphasized

Remember, in early March, he presented a plan for two key changes at the execution layer: transitioning to a binary state tree and a long-term replacement for EVM.