Former Coinbase CTO Balaji Srinivasan has proposed a groundbreaking concept called “Zethereum” that aims to revolutionize Ethereum by introducing advanced privacy features. In a detailed explanation on X, Srinivasan elaborated on how a pseudonymous developer, known as “Zatoshi,” could implement this through smart contracts utilizing zero-knowledge (ZK) technology. While drawing parallels to Bitcoin’s Satoshi, he emphasized the unique network dynamics of Zethereum.
Srinivasan envisions Zethereum as a legal version of the popular privacy tool Tornado Cash, highlighting its potential as a platform for zero-knowledge (ZK) innovation. By advocating for the integration of ZK privacy through smart contracts, he believes that the Ethereum network can benefit from rapid deployment and reduced risks. This approach, according to Srinivasan, could accelerate innovation and adoption within the ecosystem.
In addressing potential risks, Srinivasan emphasizes the importance of anonymity for the developer behind Zethereum. He advocates for a “Zatoshi” approach, emphasizing anonymity and impeccable operational security. Additionally, he calls for the exoneration of developers Roman Storm and Alexey Pertsev, who are associated with Tornado Cash, as a means to uphold privacy rights and encourage innovation.
Srinivasan defends Ethereum as the ideal platform for Zethereum compared to other blockchains like Bitcoin, Solana, and Base. He argues that Ethereum’s flexibility and distribution make it more suitable for a privacy-focused project, contrasting it with the immutability of Bitcoin and the non-anonymous nature of other blockchains. He also highlights the importance of Ethereum’s mainstream adoption potential in leveraging existing privacy and ZK scaling projects.
In light of recent legal and political developments, Srinivasan believes the timing is right for integrating ZK innovations into Ethereum through Zethereum. He sees an opportunity to enhance privacy by enabling Zcash-grade private transactions within the Ethereum network. By presenting a roadmap for the integration of ZK technologies into Ether, Srinivasan positions Zethereum as a timely and impactful initiative for advancing privacy and innovation within the Ethereum ecosystem.
