Ethereum Co-Founder Buterin Advocates for Privacy Amid Growing Surveillance Concerns

Ethereum co-founder Vitalik Buterin emphasized the importance of privacy, stating that it is essential for maintaining individual freedom and protecting against the growing power of governments and corporations. In a recent blog post, Buterin argued that the assumption of transparency and good intentions in global politics is overly optimistic and no longer valid. He criticized the idea that increased transparency is inherently beneficial, as it relies on assumptions about human nature that are increasingly untrue. Buterin highlighted that cultural tolerance is rapidly regressing, which can be demonstrated by a search for "bullying is good" on social media platforms.

Buterin shared his personal experiences with privacy, noting that his lack of privacy can be unsettling. He explained that every action he takes outside has some chance of becoming a public media story. He also pointed out that privacy is not just an advantage for those who venture outside social norms, as anyone can become a target of public scrutiny. Buterin expects the need for privacy to increase as technology develops further, with potential advancements like brain-computer interfaces allowing automated systems to peer directly into our brains. Another concern is automated price gouging, where companies charge individuals as much as they expect them to pay.

Buterin strongly opposed the idea of adding government backdoors to systems designed to protect privacy, stating that such positions are inherently unstable. He highlighted that private data can be accessed by various corporate entities and intermediaries, such as payment processors and banks. Telecommunication companies can also locate their users and have been found to illegally sell this data. Buterin raised concerns that individuals with access to private data will always be incentivized to abuse it, and data banks can always be hacked. He concluded that the safest approach to handling large-scale data is to centrally collect as little of it as possible in the first place.

Buterin also raised the issue of governments being able to access anything with a warrant, noting that this point of view fails to consider that historically, the amount of data available for obtaining through a warrant was far lower. He suggested that traditionally available data would still be available even if the strongest proposed forms of internet privacy were universally adopted. In the 19th century, the average conversation happened once, via voice, and was never recorded by anyone.

Buterin proposed solutions based mainly on zero-knowledge proofs (ZK-proofs), which allow for fine-grained control of who can see what information. ZK-proofs are cryptographic protocols that allow one party to prove a statement is true without revealing any additional information. One such system is a ZK-proof-based proof of personhood that proves that you are a unique person without revealing who you are. Those systems would rely on documents like passports or biometric data paired with decentralized systems. Another solution suggested is the recently launched privacy pools, which allow for regulatory-compliant Ether (ETH) anonymization. Buterin also cited on-device anti-fraud scanning, checking incoming messages and identifying potential misinformation and scams. The last cited systems are proof of provenance services for physical items using a combination of blockchain and ZK-proof technology. Those would track various properties of an item throughout its manufacturing cycle, ensuring the user of its authenticity.

The post follows Buterin’s recent privacy roadmap for Ethereum. In it, he highlighted the short-term changes to the base protocol and ecosystem needed to ensure better user privacy. Buterin’s emphasis on privacy reflects a growing concern among developers and users about the potential misuse of personal data by governments and corporations. His proposals for using zero-knowledge proofs and other privacy-enhancing technologies offer a potential solution to these concerns, while also highlighting the need for ongoing vigilance and innovation in the field of privacy protection.