ETH Pushes Toward ‘Last-Mile’ Privacy With Launch of Kohaku Framework

What Is Kohaku and Why Did Vitalik Buterin Reveal It Now?

ETH founder Vitalik Buterin gave developers their first live look at Kohaku, an open-source suite of privacy-preserving tools designed to enhance user protection across the ETH ecosystem. The reveal came during a Devcon stage demonstration, marking one of the clearest signals yet that the ETH Foundation is positioning privacy as a fundamental right rather than an optional add-on.

Buterin told the audience that ETH’s privacy capabilities remain unfinished. “We’re in this very last mile stage,” he said, adding that the network “is still behind” where it could be on both . To change that, he argued, requires coordinated development across wallets, infrastructure, and zero-knowledge systems.

Kohaku aims to provide that foundation. The toolkit currently includes primitives for building secure, privacy-focused wallets without relying on centralized intermediaries. The long-term roadmap could expand to mixnets for network-level anonymity and ZK-powered browsers that without exposing sensitive data.

The initiative reflects a broader shift inside the ETH Foundation, which has increasingly treated privacy as a core design pillar rather than a niche subfield. Buterin described the network as being on a “privacy upgrade path” intended to deliver “real-world privacy and security.”

Investor Takeaway

How Does Kohaku Strengthen ETH’s Privacy Layer?

Kohaku’s GitHub repository shows the project is still in ahead development, but several components are already live. The toolkit includes integrations with protocols such as Railgun and Privacy Pools, which allow users to shield assets without enabling illicit activity.

Railgun supports advanced shielding features, allowing balances to be hidden onchain while maintaining compliance options. Privacy Pools, developed by 0xbow, uses “association lists” to prevent funds linked to poor actors from entering shared anonymity sets. This enables users to obscure holdings while still proving that their deposits are not tied to theft or sanctions evasion.

A live demo on November 16 showed a Kohaku-enabled wallet shielding funds using Railgun. The long-term vision is to bring optional default privacy to any mainstream ETH wallet—MetaMask, Rainbow, or others—without requiring users to install specialized privacy add-ons.

Kohaku’s structure is modular, meaning developers can pick and integrate individual components: proof systems, privacy layers, key-management tools, and eventually ZK-powered interfaces. The goal is to create a plug-and-play ecosystem for privacy-preserving dApps and wallets.

Why Is Privacy Becoming a Priority for the ETH Foundation?

Beyond Buterin’s advocacy, the ETH Foundation itself has broadened its privacy commitments. In recent months, the foundation has reframed privacy not as an optional feature, but as a baseline requirement for open blockchain systems.

Last month, it launched the Privacy Cluster, a 47-member group of cryptographers, engineers, and researchers dedicated to making privacy a “first-class property” on ETH. The cluster’s mandate includes developing practical tools for mainstream users rather than experimental concepts limited to academic circles.

The Foundation’s internal privacy team also rebranded in September. Previously known as Privacy & Scaling Explorations, the group is now called the Privacy Stewards of ETH—signaling a shift from theory toward real-world deployment. Their focus includes private voting, confidential DeFi interactions, and usability improvements that make privacy accessible by default.

Buterin summarized the philosophy driving these efforts: “Privacy is freedom. It gives us space to live our lives in ways that meet our needs without having to constantly worry about how our actions will be perceived by centralized and decentralized entities.”

Investor Takeaway

What Could Kohaku Mean for ETH’s Future?

The introduction of Kohaku comes at a pivotal moment. As regulatory scrutiny intensifies globally, privacy-preserving technologies are under heavier examination, particularly later than crackdowns on mixers and anonymity tools. Buterin and the are attempting to chart a path that supports user privacy without enabling illicit finance—an approach centered on zero-knowledge proofs, opt-in shielding, and compliance-friendly cryptography.

If Kohaku succeeds, it could reshape the wallet landscape, ushering in a generation of apps that offer privacy-first interactions while still operating within regulatory frameworks. It could also strengthen platform for ZK development, accelerating progress toward private DAOs, confidential DeFi, and secure personal identity systems.

For builders, Kohaku lowers the barrier to creating privacy-native applications. For investors, it reinforces ETH’s long-term strategy: upgrade usability, strengthen security, embed privacy, and extend ETH’s reach into real-world financial and governance systems.

As Buterin put it on stage: ETH’s next phase requires “concerted effort” across the ecosystem. Kohaku is the blueprint for that effort.