Ethereum Developers Revisit Privacy With New Token Standard Proposals
Ethereum developers are renewing their focus on transaction privacy through proposals such as pERC-20 and Starknet’s STRK20 framework. The work points to a broader debate over whether blockchains can protect user confidentiality while preserving transparency and compliance features.
What happened?
Ethereum developers are renewing their focus on transaction privacy through proposals such as pERC-20 and Starknet’s STRK20 framework. The work points to a broader debate over whether blockchains can protect user confidentiality while preserving transparency and compliance features.
Why it matters
The contrast between pERC-20 and STRK20 highlights an emerging question for the crypto ecosystem: whether privacy should focus mainly on payments or become a broader layer for financial applications. pERC-20 still faces the review process required of Ethereum proposals, but its appearance alongside frameworks such as STRK20 suggests privacy is again becoming a serious area of developer attention.
Ethereum developers are exploring new privacy-focused token designs as the topic moves back into the center of blockchain infrastructure discussions. A proposed Ethereum token standard called pERC-20 would let users hold and transfer tokens without publicly exposing balances, transaction amounts or counterparties, according to CoinDesk.
The development matters because most Ethereum token activity is currently visible onchain, allowing anyone to inspect wallet balances and transaction histories. pERC-20 would change that model by representing tokens as encrypted cryptographic notes, while still allowing the network to verify transactions and keeping total token supply publicly visible.
The proposal also includes a compliance feature that would let issuers freeze specific notes through a cryptographic blacklist without revealing ordinary users’ balances or transaction histories. That design reflects a wider shift in crypto privacy work, where developers are increasingly trying to combine confidentiality with compliance rather than treating the two as incompatible.
Privacy efforts are also expanding beyond Ethereum’s base token standards. Starknet recently went live with STRK20, a privacy-focused token framework intended to extend confidentiality into decentralized finance activities such as lending, staking and swaps. Eli Ben-Sasson, co-founder of StarkWare, told CoinDesk that usability remains a major obstacle for privacy technology, because weak user experience can limit adoption and reduce anonymity.
The contrast between pERC-20 and STRK20 highlights an emerging question for the crypto ecosystem: whether privacy should focus mainly on payments or become a broader layer for financial applications. pERC-20 still faces the review process required of Ethereum proposals, but its appearance alongside frameworks such as STRK20 suggests privacy is again becoming a serious area of developer attention.