Vitalik Buterin Calls for Rebuilding Ethereum Ecosystem Around Privacy and AI

Buterin Pushes for Bold Experimentation Without Compromise

Ethereum co-founder Vitalik Buterin has called on the developer community to rethink how applications are built on the network. He argues that it is time to move beyond established patterns and embrace bolder experimentation with DeFi and artificial intelligence — while preserving the blockchain's fundamental properties.

«I think it's healthy for us in the Ethereum world to have a more bold and open mindset to many things, particularly on the application layer and on how we see ourselves in the world. We should not compromise on core properties: censorship resistance, open source, privacy,…» — vitalik.eth (@VitalikButerin), original post

Buterin outlined the non-negotiable properties that must remain intact: censorship resistance, open source, privacy, and security. He grouped these under the acronym CROPS. At the application and interface level, however, developers should be willing to rethink long-standing concepts and step outside their comfort zone, he wrote.

Why This Matters

Buterin's statements set the development trajectory for the largest smart contract platform. Ethereum underpins thousands of decentralized applications, and a philosophical shift in how the application layer is designed could ripple across the entire industry — from DeFi protocols to wallets and AI integrations. Establishing privacy as a foundational property of the ecosystem may define Ethereum's competitive position for years to come.

Privacy as the Foundation of Freedom

According to Buterin, the next wave of Ethereum innovation will emerge at the application layer, with privacy serving as the key focus area. The co-founder frames privacy as the bedrock of user freedom. Achieving this goal will require significant reworking of the current application stack, which was not originally designed with confidentiality in mind.

Efforts are already underway. In November 2025, Buterin introduced Kohaku, an open-source tool designed to create a modular stack for building wallets with enhanced privacy features. The Ethereum Foundation has also been active on this front: in October, the organization assembled a team of 47 specialists focused on improving privacy at the network's base layer.

The Future of DeFi, Oracles, and AI Integration

Buterin suggested that decentralized finance could evolve into a universal infrastructure layer. He speculated that over time, a significant portion of DeFi will consolidate around futures markets built on top of oracles — a small set of base primitives replacing the current fragmented landscape of protocols.

Oracles themselves may also undergo transformation. One proposed concept involves generating verifiable data streams by combining cryptographic proofs with outputs from multiple LLMs and trusted sources.

Buterin devoted particular attention to the role of AI in user experience. Integrating intelligent features could reduce reliance on traditional wallet interfaces and standalone dapps, replacing them with more natural interaction patterns. He expressed confidence that the next generation of wallets will be deeply intertwined with artificial intelligence.

However, Buterin cautioned against blindly trusting LLMs for high-value transactions. His proposed optimal workflow: AI generates a plan, a local light client simulates its execution, and the user reviews the simulation results before manually confirming the operation.

Rethinking L2s and a Cultural Shift

Buterin also addressed the role of Layer 2 solutions, urging a reassessment. L2 networks should complement Ethereum's base infrastructure rather than simply replicate its functionality on the side, he argued. He had previously stated that as the main blockchain scales, the necessity for second-layer networks diminishes.

Beyond technical considerations, Buterin touched on the cultural dimension of community development. Using the metaphor of the "Milady story," he encouraged developers and ecosystem participants to shed formalities and regain flexibility of thought. His message boiled down to embracing change and discarding rigidity — telling people to metaphorically "take off the suit and tie" and reclaim freedom and agility.

Earlier in March, Buterin published a plan for two major changes to Ethereum's execution layer: a transition to a binary state tree and the long-term replacement of the EVM.