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@polymutex.eth
There have been efforts to add privacy to Ethereum L1, such as stealth addresses[1] and EIP-7503[2]. [1]: https://vitalik.eth.limo/general/2023/01/20/stealth.html [2]: https://eips.ethereum.org/EIPS/eip-7503
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@polymutex.eth
However, the state of L1 privacy today is: - No Ethereum wallet supports stealth addresses. - EIP-7503 isn't slated for inclusion. - Tornado Cash is sanctioned by OFAC. - Its developers are in jail. - There is nothing on Vitalik's roadmap[3] around privacy. [3]: https://x.com/VitalikButerin/status/1741190491578810445
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@polymutex.eth
L2s can't have real privacy if L1 doesn't have privacy. Since rollups' security properties requires the ability for an L1 user to force inclusion of a transaction in a rollup, then true L2 privacy only exists if there is a way to do force-inclusion without revealing the identity of the L1 or L2 user in the process.
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It seems clear that this is an under-researched area of Ethereum. Yet it is an area that, if Ethereum is maximally successful but nothing is done on L1 privacy before Ethereum ossifies, Ethereum would have created a surveillance dystopia.
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