Finance

Vitalik Buterin’s Radical Ethereum Move: How Removing a Key Feature Could Supercharge ZK Scaling and Privacy

Vitalik Buterin proposed removing a feature hindering Ethereum‘s scaling, impacting zero-knowledge proof generation.

byAndres Castro

November 4, 2025, 9:50 AM

A silver physical Ethereum coin stands upright on a reflective surface against a blue background with digital stock charts.

A physical Ethereum token representing digital investing against a background of rising candlestick charts. By MDL.

Executive Summary

Ethereum co-founder Vitalik Buterin has proposed removing the modular exponentiation precompile (modexp) feature, citing its detrimental impact on network scaling and its role in slowing zero-knowledge proof generation by up to 50 times.

The modexp feature’s inefficiency is hindering Ethereum’s development of a privacy-first infrastructure and the broader adoption of zero-knowledge Ethereum Virtual Machines (ZK-EVMs), posing significant consensus failure risks.

The Ethereum ecosystem is intensifying its focus on privacy and institutional engagement through initiatives like “Ethereum for Institutions,” the establishment of a Privacy Cluster, and the development of new cryptographic techniques such as Buterin’s GKR.

The Story So Far

Ethereum co-founder Vitalik Buterin’s proposal to remove the modular exponentiation precompile (modexp) is driven by its significant detrimental impact on the network’s scaling capabilities and privacy infrastructure, as it severely bottlenecks the generation of zero-knowledge proofs essential for Layer-2 solutions and ZK-EVMs. This technical adjustment is crucial for Ethereum’s broader strategic goals of accelerating institutional adoption and enhancing privacy, which are seen as vital for the network’s long-term viability and to prevent it from becoming a tool for “global surveillance.”

Why This Matters

Vitalik Buterin’s proposal to remove the modexp feature underscores Ethereum’s commitment to resolving critical technical bottlenecks that hinder its scaling capabilities and privacy infrastructure. This move is expected to significantly improve the efficiency of zero-knowledge proofs and layer-2 solutions, which are essential for faster transaction processing and securing sensitive data, thereby accelerating institutional adoption and solidifying Ethereum’s position as a compliant and private platform for financial applications and real-world assets.

Who Thinks What?

Vitalik Buterin proposes removing the `modexp` precompile feature, which he originally developed, because it creates significant bottlenecks in generating zero-knowledge proofs, slows layer-2 networks, and hinders Ethereum’s privacy-first infrastructure and ZK-EVM adoption, suggesting its replacement with standard EVM bytecode for greater stability.

The Ethereum Foundation and broader ecosystem are intensifying efforts to enhance privacy and institutional adoption, launching initiatives like “Ethereum for Institutions” and establishing a Privacy Cluster to address surveillance concerns and support enterprise engagement, believing robust privacy is essential for the network’s future and to prevent it from becoming a “global surveillance” tool.

Ethereum co-founder Vitalik Buterin has proposed the removal of a core blockchain feature he originally developed, citing its detrimental impact on the network’s scaling capabilities. The modular exponentiation precompile, known as modexp, is creating significant bottlenecks in the generation of zero-knowledge proofs, reportedly slowing these processes up to 50 times compared to average blocks and impeding the progress of layer-2 networks.

The Technical Burden on ZK Scaling

Buterin’s proposal, shared on X, highlights that the modexp feature severely hinders Ethereum’s push towards a privacy-first infrastructure and the broader adoption of zero-knowledge Ethereum Virtual Machines (ZK-EVMs). While acknowledging his role in its creation, Buterin stated that modexp’s inefficiency and complexity expose the ecosystem to considerable consensus failure risks.

Zero-knowledge EVMs are crucial for off-chain cryptographic proof generation, which validates Ethereum computations to enable faster transaction processing without compromising security. Buterin explained that modexp’s computational intensity disproportionately delays these proof generations, directly affecting the performance of rollups and other layer-2 solutions designed to scale Ethereum.

Instead of dedicating resources to optimize a feature used by a minimal fraction of users, Buterin suggested replacing the precompile with standard EVM bytecode. This alternative would achieve identical results at higher gas costs but significantly reduce proof generation complexity and enhance ecosystem stability.

Privacy and Institutional Adoption Efforts

The proposal comes as the Ethereum ecosystem intensifies its focus on privacy and institutional engagement. In late October, the Ethereum Foundation launched “Ethereum for Institutions,” a new portal aimed at guiding enterprises and financial organizations in adopting blockchain technology.

This initiative leverages zero-knowledge proofs, fully homomorphic encryption, and trusted execution environments to facilitate compliant and audit-ready applications on public networks. Projects such as Chainlink, RAILGUN, Aztec Network, and Zama are developing privacy-preserving smart contracts to secure sensitive business logic and counterparty information.

Ethereum continues to lead in the real-world asset (RWA) and stablecoin sectors, hosting over 75% of tokenized RWAs and 60% of the global stablecoin supply. Major financial entities, including BlackRock, Securitize, and Ondo Finance, are deploying tokenized instruments on the network, benefiting from 24/7 settlement and enhanced transparency.

Accelerating Privacy Infrastructure

Further underscoring its commitment to privacy, the Ethereum Foundation established a 47-member Privacy Cluster in October, led by Blockscout founder Igor Barinov. This cluster expands on work initiated in 2018 by the Privacy and Scaling Explorations team, which was rebranded to Privacy Stewards for Ethereum in September.

The cluster’s mandate includes addressing surveillance concerns, private data verification, selective identity disclosure, user experience improvements, and institutional adoption support. The foundation has cautioned that without robust privacy protections, Ethereum risks becoming a tool for “global surveillance” rather than “global freedom,” potentially driving users and institutions towards alternative platforms.

Last month, Buterin also unveiled GKR, a cryptographic technique capable of verifying calculations ten times faster than traditional methods. GKR enables zero-knowledge proofs that confirm computational accuracy without revealing underlying data, processing 2 million calculations per second on standard hardware and significantly reducing the computational work required for verifying Ethereum transactions.

Key Takeaways

Vitalik Buterin’s call to remove the modular exponentiation precompile highlights Ethereum’s proactive approach to addressing technical bottlenecks that impede its scaling and privacy objectives. This move, alongside initiatives like “Ethereum for Institutions” and the Privacy Cluster, underscores the network’s ongoing evolution to support faster, more private, and institutionally viable blockchain solutions.