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Vitalik Buterin's Latest ZK Update and Its Influence on the Cryptocurrency Landscape

Vitalik Buterin's Latest ZK Update and Its Influence on the Cryptocurrency Landscape

Bitget-RWA2025/11/21 01:56
By:Bitget-RWA

- Vitalik Buterin's removal of Ethereum's modexp precompile optimizes ZK scalability, prioritizing long-term throughput over short-term gas efficiency. - Integrating ZK proofs with MPC and FHE enhances DeFi privacy, enabling secure voting and private transactions while maintaining regulatory compliance. - Institutional adoption of ZK infrastructure accelerates, with projects like Succinct Labs securing $55M to build enterprise-grade solutions for cross-chain interoperability. - ZK rollups like StarkNet and

Vitalik Buterin has played a crucial role in advancing zero-knowledge (ZK) technology, making him a central figure in Ethereum’s ongoing transformation. Although his recent support for advancements hasn’t been explicitly outlined in public statements, it builds upon years of foundational work, especially in tackling scalability issues and improving privacy within decentralized finance (DeFi). As the crypto industry seeks to balance throughput, security, and decentralization, Buterin’s ideas provide a strategic path for institutional integration and sustainable value growth. This article examines the technical and strategic significance of his initiatives, as well as the investment prospects in DeFi infrastructure powered by ZK technology.

Technical Innovations: Enhancing ZK Scalability

One of Buterin’s main priorities for 2025 has been eliminating Ethereum’s modexp precompile, an older function used for modular exponentiation.

, this precompile places a heavy computational load on ZK-EVM operations, making them up to 50 times more complex than regular transactions. Buterin suggests that substituting it with standard EVM code would allow even if it leads to higher gas fees in the near term. This approach favors long-term scalability over short-term cost savings, supporting Ethereum’s vision of becoming a “world computer” that can handle enterprise-level applications.

Buterin’s ambitions go beyond single improvements. He has advocated for combining ZK proofs with other cryptographic methods such as multi-party computation (MPC), fully homomorphic encryption (FHE), and trusted execution environments (TEE).

, this multi-layered strategy could close privacy gaps in DeFi, enabling secure voting, confidential state queries, and protocols resistant to coercion. These advancements are essential for institutions aiming to comply with regulations while preserving decentralization.

Strategic Impacts on DeFi: Privacy and Scalability

Removing the modexp precompile has already driven progress in ZK-based rollups. For example,

with almost immediate finality, proving that ZK technology can support high-volume DeFi use cases. Likewise, (using STRK and BTC) showcases the potential for cross-chain collaboration, boosting both security and liquidity for the and networks.

Buterin’s focus on privacy is equally significant. By integrating ZK proofs with MPC and FHE, DeFi platforms can deliver provable privacy without losing transparency. This is especially important for institutional participants who need strong privacy protections to meet regulatory demands.

, institutional interest in ZK-based assets is rising, with companies like Labs raising $55 million in 2025 to build enterprise-level ZK solutions.

Investment Prospects and Challenges

The pivot toward ZK technology is creating attractive investment opportunities. Native tokens from ZK rollups, including

(StarkNet) and ZKsync’s token, stand to gain from network growth and scalability achievements. Growing institutional participation further supports their long-term outlook, as businesses look for scalable and private solutions for asset management and interoperability across blockchains.

Nevertheless, investors should proceed with caution.

, leading to short-term volatility in ZK-related transactions. Moreover, advanced cryptographic technologies like FHE are still experimental and need more research to address implementation challenges.

Conclusion

Vitalik Buterin’s push for ZK technology marks a decisive shift toward scalable and privacy-focused DeFi infrastructure. While direct announcements for 2025 remain limited, his previous efforts—such as removing the modexp precompile and layering cryptographic solutions—set a clear direction for Ethereum’s future. For investors, the increasing institutional embrace of ZK-based assets and rollups points to a maturing sector, though navigating technical and regulatory hurdles will require patience. As the crypto landscape adopts these breakthroughs, ZK-driven projects are expected to lead the next wave of DeFi expansion.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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