Ethereum developers must rethink their approach to application creation, experimenting with new DeFi models and AI integration without compromising fundamental principles, according to project co-founder Vitalik Buterin.
I think it’s healthy for us in the Ethereum world to have a more bold and open mindset to many things, particularly on the application layer and on how we see ourselves in the world.
We should not compromise on core properties: censorship resistance, open source, privacy,…
— vitalik.eth (@VitalikButerin) March 5, 2026
He emphasized that the ecosystem must remain committed to censorship resistance, open source, privacy, and security, which he encapsulated with the acronym CROPS. Developers should boldly experiment with the architecture of dapps.
“We should not compromise on core properties. But at the application and interface level, we should be ready to step out of our comfort zone and rethink established concepts,” the programmer wrote.
Foundation
Buterin believes the next wave of innovation will emerge at the application level.
Privacy should be a key focus, which the Ethereum co-founder describes as the foundation of freedom. To make it a fundamental characteristic, a significant portion of the current application stack, which was not initially designed for confidentiality, will need to be restructured.
In November 2025, the programmer introduced a tool to enhance Ethereum’s privacy called Kohaku. This open-source project creates a modular stack for developing secure wallets with enhanced privacy.
The Ethereum Foundation is also working diligently in this area. In October, the organization formed a team of 47 specialists to improve the privacy of the network’s base layer.
DeFi, Oracles, and AI
DeFi could evolve into a universal infrastructure. Buterin suggested that over time, a significant portion of decentralized finance will be reduced to futures markets built on top of oracles. Instead of numerous disparate protocols, there will be a small set of basic primitives.
Oracles may also change. One idea is to generate verifiable data streams by combining cryptographic proofs with insights from multiple LLM and trusted sources.
AI has the potential to transform user experience. Integrating intelligent functions could reduce reliance on traditional wallet interfaces and individual applications, replacing them with more natural interaction scenarios.
The next iteration of wallets will be closely linked to artificial intelligence, Buterin is convinced. However, in situations involving large transactions, he would not recommend trusting LLMs directly. The optimal scenario:
“AI proposes a plan, a local light client simulates it, the user sees the action and simulation result, and confirms manually.”
The Ethereum co-founder also called for a reassessment of the role of L2 solutions. He stated that they should complement the basic infrastructure rather than merely replicate its functionality on the side. Previously, the programmer asserted that as blockchain scales, the need for second-layer networks diminishes.
“It’s also about culture. For me and many others, it’s an important part of what lies behind the ‘Milady story.’ Yes, it’s a silly meme. […] But the essence is simple: take off your jacket and tie. And if you’re wearing them, be ready to grab a glass and spill wine on your chest, so you have no choice but to get rid of them and regain your freedom and flexibility,” Buterin emphasized.
Earlier in March, he presented a plan for two key changes to the network’s execution layer: transitioning to a binary state tree and the long-term replacement of the EVM.
