A new proposal shared by Ethereum developer Tom Lehman aims to increase privacy on the ETH network. Draft EIP-8182, prepared by Ethereum developers, envisions significant protocol-level changes to make transactions more anonymous and secure.
The proposal aims to integrate a “shared shielding pool” mechanism directly into the Ethereum protocol layer. This structure, which will operate through system contracts and zero-knowledge (ZK) pre-compilations, can be implemented with just a hard fork update. The goal is to create a unified set of anonymities and a trustless security model across the network.
EIP-8182 proposes enabling users to make private transfers to any address, separating authorization and proof-of-work processes, and supporting customizable authentication methods. The proposal also includes atomic transactions that allow for the private exchange and subsequent concealment of assets. This ensures that the privacy features remain compatible with Ethereum’s existing application layer interoperability.
Lehman stated that currently all transactions on Ethereum are publicly accessible, which contradicts the concept of privacy found in traditional financial systems. While Vitalik Buterin had previously suggested integrating privacy tools into wallets, it was noted that current solutions have significant drawbacks.
Among these problems, the “chicken-and-egg problem” (the inability of new applications to provide sufficient privacy initially) and shortcomings in the trust model stand out, especially in terms of anonymity. The fact that updates are dependent on the control of specific groups is also cited as another factor limiting the adoption of current solutions.
According to data, less than one in ten thousand transactions on the Ethereum network are conducted privately. This rate is even below the peak levels of 2020. The new EIP-8182 proposal aims to reverse this trend and increase the use of privacy within the Ethereum ecosystem.
*This is not investment advice.