Ethereum
TLDR: LONDONâEthereum developers are revisiting privacy with the proposed pERC-20 token standard, which would hide balances, amounts, and counterparties while keeping total supply public, as Starknet launches STRK20 for private DeFi. The renewed push matters because it challenges the assumption that public blockchains must expose every financial interaction.
Key Takeaways:
- Privacy faded after scaling races and scrutiny of tools like Tornado Cash, while regulators and users favored clearer onchain records.
- pERC-20 would represent tokens as encrypted notes with publicly verifiable checks, plus a cryptographic blacklist that can freeze specific notes.
- Starknet STRK20 aims to extend confidentiality across DeFi use cases like lending, staking, and token swaps, highlighting a shift from niche privacy to core infrastructure.
For years, privacy in crypto felt like a side quest. Now it is showing up as infrastructure, where UX and compatibility may decide whether privacy becomes normal or stays rare.
For years, privacy in crypto felt like a side quest. Now it is showing up as infrastructure, where UX and compatibility may decide whether privacy becomes normal or stays rare.
Q&A
If pERC-20 keeps total supply public, what new kinds of privacy leaks might still appear from metadata and timing patterns?
Even with hidden balances and amounts, observers can still infer relationships from transaction timing, network behavior, and counterparties if the protocol or wallets reveal linkable metadata. The standardâs real test will be whether wallets and explorers avoid reintroducing linkability.
Why might Ethereum users still struggle even if pERC-20 and STRK20 are technically sound?
Eli Ben-Sasson points to UX as the bottleneck. Slow synchronization, confusing flows, and weak compatibility can shrink the user base, and a smaller privacy set reduces anonymity even when cryptography is strong.
How does the cryptographic blacklist freeze in pERC-20 change the privacy debate compared with earlier approaches?
It reframes the tradeoff between compliance and confidentiality by letting issuers target specific encrypted notes without exposing ordinary usersâ balances or full histories. That may appeal to institutions that want enforcement without blanket transparency.
What happens if privacy token standards spread, but regulators push for selective transparency requirements in wallets or exchanges?
Standards alone may not control real-world behavior. If exchanges or wallet vendors adopt compliance hooks that force disclosure, privacy can weaken at the edges, turning onchain confidentiality into an imperfect promise.
If Starknet builds privacy across DeFi first, could Ethereumâs privacy proposal lose momentum in practice even if it gets approved?
Adoption often follows developer and liquidity gravity. If STRK20 becomes the default privacy layer for DeFi, users may choose the ecosystem where integrations and tooling already work, leaving Ethereum standards to mature more slowly.
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