Ethereum dev proposes ‘Secret Santa’ protocol to drive privacy – Details!

Privateness grew to become the most well liked matter in 2025 and essentially the most worthwhile narrative throughout the crypto markets. As Christmas approaches, the frenzy stays. That’s why an Ethereum developer has introduced a ‘Secret Santa’ privacy-focused protocol for nameless gifting. 

Supply: ETH Analysis 

 This isn’t Ethereum’s first stab at privateness although. In truth, again in September, the Ethereum Basis unveiled an bold privateness roadmap.

It covers all ranges of the chain, from user-facing wallets to personal funds and transactions for retail and institutional use circumstances. 

Already, non-public pockets options are being rolled out due to the Kohaku framework.

What’s subsequent for Ethereum in 2026?

That being mentioned, the Ethereum ecosystem’s mid-term targets overlap between privateness, scaling, and AI. 

Apparently, latest scaling efforts, similar to Pectra and Fusaka, are enhancing throughput and decreasing the general value of transactions to rival different competent chains, like Solana. 

In truth, the price issue has dropped considerably that the Ethereum mainnet Layer 1 (L1) is now rivalling its Layer 2s (L2s). In a latest submit, Vitalik Buterin, the founding father of Ethereum, stated that customers can now construct immediately on the L1 at present low charges. 

Supply: X

Ethereum L1 vs. L2 debate

Nonetheless, Buterin’s assertion drew some criticism. One of many critics, Blockworks analyst Dan Smith, quipped, 

“I don’t assume it’s that easy as a result of the most important shoppers of blobspace are general-purpose L2s – direct rivals of L1 execution.”

Smith drew parallels between carpenters (L2) and lumber yards (L1), stating that they don’t promote competing finish merchandise. 

Nonetheless, different analysts countered that each mainnet L1 and L2s can nonetheless compete for a similar builders. Supporters of Buterin’s L1 push, like Hasu, poked holes into Smith’s argument and added, 

“Apple sells telephones by way of personal shops + direct distribution, but additionally on Amazon.”

And, the combat for customers between the mainnet and L2s is kind of comprehensible. Presently, L2s seize a lot of the financial worth and hardly share it with L1. 

For instance, within the final 24 hours, Base, an L2 incubated by Coinbase, generated over $3.4 million in charges. Nonetheless, solely paid $3,700 as “hire” to the mainnet. 

Supply: Growthepie

It’s based mostly on this information that almost all analysts say that L2s extract worth from Ethereum greater than they provide again. And to some extent, this tokenomics has dragged ETH’s worth, in accordance with different market watchers. 

It stays to be seen how the scaling and privateness targets will enhance ETH tokenomics and demand.

Ultimate Ideas

• The privateness narrative stays a scorching matter, and Ethereum is positioning itself effectively for the pattern. 
• Equally, Buterin is pushing for extra worth seize for the Ethereum L1, triggering backlash from some quarters.