Ethereum Takes on Privacy With Launch of Kohaku

Ethereum Foundation Expands Privacy Ambitions

The Ethereum Foundation has announced the creation of a new privacy-focused research cluster named “Kohaku”, signaling a major step in its long-term commitment to building a more private, secure blockchain ecosystem.

The cluster - which will include 47 cryptographers, engineers, and researchers — is being led by Igor Barinov, founder of the open-source block explorer Blockscout and Gnosis Chain, an Ethereum Layer-2 blockchain.

According to the Foundation, Kohaku will not operate in isolation but will collaborate across multiple Ethereum clusters, including the Institutional Privacy Task Force (IPTF), which ensures that Ethereum’s technologies comply with privacy laws and data protection frameworks worldwide.

Kohaku Wallet SDK: Ethereum’s Next Privacy Leap

The launch of the new privacy cluster comes just weeks after the Foundation revealed the Kohaku Wallet SDK, a privacy-centric browser wallet and developer toolkit set to debut at EFDevcon in November.

The wallet aims to allow Ethereum users to perform private transactions without relying on trusted intermediaries, marking one of Ethereum’s most ambitious efforts to date in advancing on-chain privacy.

According to early documentation, the Kohaku SDK integrates zero-knowledge cryptography and secure enclave systems to ensure sensitive user data never leaves local devices. The Foundation said the SDK will be “modular,” enabling developers to easily embed privacy features into dApps, wallets, and L2 solutions.

Buterin and Privacy Advocates Push Back Against Regulation

Ethereum co-founder Vitalik Buterin recently took to X (formerly Twitter) to criticize the EU’s proposed Child Sexual Abuse Regulation, which could mandate scanning of private messages, including encrypted content.

“If you outlaw privacy, only outlaws will have privacy,” Buterin warned, echoing concerns from privacy advocates who see the regulation as a threat to encryption and free expression.

The Foundation’s renewed focus on privacy also comes amid renewed interest in privacy coins such as Zcash, whose token doubled in value earlier this month following praise from figures like Naval Ravikant.

Experts see Ethereum’s new Kohaku cluster as part of a broader industry shift toward preserving user anonymity while remaining compliant with regulatory frameworks.

“Ethereum Needs Real Privacy”

Privacy advocate and Nym founder Harry Halpin praised the Ethereum Foundation’s move, saying it reflects a long-awaited shift from talk to tangible action.

However, he cautioned that Ethereum’s current privacy mechanisms still fall short of true anonymity. Halpin cited that wallets like MetaMask can expose users’ IP addresses to ConsenSys’s Infura servers unless they use VPNs, Tor, or self-hosted nodes.

He urged Ethereum to learn from Zcash’s technical implementation of zero-knowledge proofs to bolster its infrastructure and reduce third-party data exposure.

Privacy as Ethereum’s Next Frontier

As regulatory scrutiny tightens worldwide, the Kohaku cluster and its wallet SDK represent Ethereum’s most coordinated effort yet to defend privacy as a core principle of Web3.

By combining academic research, applied cryptography, and cross-cluster collaboration, the Ethereum Foundation is laying the groundwork for a new generation of private transactions, potentially reshaping how billions interact with the Ethereum ecosystem.

With privacy once again becoming a global flashpoint, Kohaku’s launch may define Ethereum’s next phase - not just as a platform for smart contracts, but as the standard-bearer for digital sovereignty.