Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Paul Brody, Global Blockchain leader at Ernst & Young and chairman of the Enterprise Ethereum Alliance, projects 2026 as the “golden year” for Ethereum privacy, particularly for enterprise adoption. This optimistic outlook stems from significant advancements in privacy-centric Ethereum Virtual Machine (EVM) networks, which have drastically reduced the cost and improved the efficiency of shielded transactions.
Cost-Effective Privacy Solutions Emerge
Modern privacy-oriented networks are now processing shielded transactions far more cheaply than earlier prototypes. Brody highlighted that Ernst & Young’s Nightfall now spends just $0.05 for verification tooling that previously cost $100 in gas fees eight years ago, representing a 2000x reduction in cost.
This trend is not isolated, according to Brody. Other blockchains exploring zero-knowledge (ZK) computations, such as Aztec, COTI Network, and Miden, have also achieved notable progress in the speed of ZK-proof generation and reduced gas expenditure.
Mainstream Adoption and Institutional Interest
Brody anticipates that the improved technology will lead to mainstream adoption for both individual users and, more significantly, institutions leveraging Ethereum’s computation resources in the coming months. He expressed confidence that within 18 to 24 months, even complex transactions will become cost-efficient for business users and consumers at high volumes.
The resulting privacy capabilities are expected to be more robust than those achieved by permissioned blockchains, which often remain traceable to their organizers.
Distinguishing Privacy from Anonymity
Brody emphasized that current privacy developments are not aimed at achieving anonymity. Instead, they focus on combating unfair competition within business environments rather than becoming obfuscated for regulators and researchers.
With solutions like Nightfall and Aztec currently deployed in testnet environments, 2026 is poised to be a pivotal year for Ethereum privacy for both consumers and business users.
Background Context
The focus on Ethereum privacy aligns with broader ecosystem developments. As U.Today previously reported, Ethereum co-founder Vitalik Buterin outlined a privacy roadmap in April 2025, detailing both Layer 1 and Layer 2 changes designed to enhance privacy across EVM ecosystem networks.
