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Ethereum announces major improvements to the blockchain. A new roadmap is generating enthusiasm among investors. In the coming months, ETH is expected to undergo drastic changes that, according to developers, will keep the network relevant. Ether becomes a privacy coin.
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Ethereum Announces Major Improvement with this Roadmap
The Ethereum Foundation presented a new roadmap last Friday in which it announced major improvements to the blockchain. As a result, Ethereum is to be transformed from a transparent to a confidential blockchain. According to the developers in charge, this is necessary to secure the future of the network.
“Ethereum is on its way to becoming the consensus layer of the world, but without strong privacy it risks becoming the backbone of global surveillance rather than global freedom,” employees of the foundation explained in a statement.
“A system without privacy will drive institutions and users to compete, thereby undermining the very mission that Ethereum was created to achieve,” it continues.
Parallel to the publication of this so-called PSE Roadmap, the responsible working group of the Ethereum Foundation renamed itself. Founded in 2018, it was last known as Privacy & Scaling Explorations.
To make a change in the organization clear at first glance, the working group renamed itself. It is now called Privacy Stewards of Ethereum.
So far, the group’s task has been to research and promote cryptography. From now on, they will have more important duties. The organization’s work should ensure that all areas of Ethereum are encrypted in the future in order to create comprehensive privacy.
Ethereum Announces Drastic Improvements over the Next few Months
As part of the PSE Roadmap, the Ethereum Foundation is announcing drastic improvements within a few months. The PSE presented a work plan that should be fully implemented in three to six months.
This brisk activity seems to be causing euphoria among investors. After the roadmap was released to the public on Friday, the ETH price shot up rapidly. Within a few hours, Ethereum’s market value rose by five percent – from $4,513 to $4,739. At the time of going to press, however, ETH is trading at $4,534 after a correction.
- Ethereum
(ETH) - Price $4,494.51
- Market Cap
$542.33 B
After the implementation of the PSE Roadmap, users can use confidential transactions. This means that it is no longer possible to trace which address sends how much money to which recipient. ETH then competes with privacy coins such as Monero or Zcash. Litecoin underwent a similar development in 2022. The actually transparent blockchain was expanded through optional privacy.
In addition to the new confidentiality when sending digital money, users should also enjoy a confidential Web3. DeFi applications should therefore also respect the privacy of their users. ETH could thus combat the ongoing problem of sandwich attacks, which cause unexpected damage worth millions to users of dApps every year.
ETH Developers Promise Consensus with Regulators
Privacy on the blockchain has been a source of conflict for years. In 2022, the USA sanctioned the mixer Tornado.cash, which obscures users’ funds on Ethereum.
In 2023, MiCA, the EU’s crypto law, was passed. The regulation bans privacy coins from centralized trading venues. Encrypted blockchains often draw criticism from state institutions.
Ethereum promises to find a consensus with regulators in the PSE Roadmap. The text states:
“Privacy solutions will be prevalent in all core application areas, provide a seamless user experience, be powerful and cost-effective, and comply with global regulations.”
According to PSE, many of the concepts come from the Ethereum community. Even Ethereum inventor Vitalik Buterin contributed to it.
