Ethereum co-founder Vitalik Buterin recently called for privacy to be treated as basic “hygiene” after a major cyberattack exposed sensitive client data at U.S. banks. Hackers infiltrated SitusAMC, a technology provider for financial institutions like JPMorgan, Citi, and Morgan Stanley. The attack led to the breach of “accounting records and legal agreements” and exposed customer data from those institutions.
The attack came after Situs AMC experienced unauthorized access to its systems. The company said hackers had stolen sensitive information. The extent of the breach is still being investigated.
The released data could seriously harm affected individuals, leading to potential identity theft and financial exposure. Buterin’s reaction to this incident underscores the importance of keeping personal data safe.
Buterin Advocates for Privacy as a Digital Essential
Buterin has long advocated for privacy in digital environments, framing it as a baseline requirement. He emphasized that privacy should not be an optional feature but a necessary practice in modern technology.
His comments on privacy as “hygiene” aim to shift how privacy is integrated into digital systems. Buterin believes that without privacy, users are exposed to unnecessary risks.
Buterin’s privacy orientation is evident in the latest developments from Ethereum. In an essay in April, he explained a vision of Ethereum including stealth addresses, selective disclosure, and zero-knowledge technology.
These are instruments whose purpose is to reduce the exposure of sensitive data. With privacy by default, Ethereum is striving to prevent the same kind of data leakage seen in traditional finance.
The Ethereum Foundation also took a bold step toward privacy with its launch of a specialized research cluster in October. The group comprises 47 engineers and cryptographers focused on solutions to improve user privacy.
Buterin and Nicolas Consigny released a privacy-first browser wallet called Kohaku. The wallet allows users to secure their data while working with dApps on Ethereum.
Bitcoin, Ethereum, and Solana Drive Privacy Innovations
Beyond Ethereum, other cryptocurrencies are also paying attention to privacy. Bitcoin’s Taproot upgrade introduces more security to transactions, which would complicate the process of tracing action.
Privacy is also a primary focus for Ethereum layer-2 solutions, baked into their design rather than an afterthought. Solana is putting privacy at the center of its ecosystem through Light Protocol. This marks a departure from previous privacy efforts, such as Elusiv. Now, Solana is working on integrating privacy as a core component of its blockchain.
Zcash, a privacy-based cryptocurrency, is getting a lot of attention. Nasdaq-listed treasury firm Cypherpunk Technologies, following its latest $18M token purchase, now holds a total of 233,644.56 ZEC. Zcash supports two types of transactions, and users can choose between them based on their privacy needs.
Anonymity has been a core tenet of crypto from the start. The privacy issue was considered by Satoshi Nakamoto, Bitcoin’s pseudonymous creator, in the 2009 Bitcoin whitepaper.
Nakamoto emphasized the need for trust in banks, not just with money but also about the privacy of user data. His dream of a decentralized, privacy-respecting financial system has significantly shaped how privacy is treated in crypto today.
Privacy is a key concern as cryptocurrencies mature. As privacy tools continue to improve, particularly for ETH and BTC, the industry is clearly moving towards heightened security and better protection for users.