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Crypto

Ethereum’s Next Upgrade Adds Privacy Pools

Ethereum's next major upgrade will let privacy pools pay their own transaction fees, removing the need for intermediaries.

The update

Ethereum developers are targeting a privacy-focused package for the upcoming Hegotá upgrade. The proposal would allow privacy pools to pay their own transaction fees, removing the need for intermediaries. This approach relies on a new transaction format called Frame Transactions (EIP-8141) and Fork-Choice Enforced Inclusion Lists (FOCIL, EIP-7805). Together, these tools aim to give wallets more control over execution and protect transactions from censorship.

Why it matters

Privacy pools are tools that let users mix their assets to obscure transaction history. Currently, these pools often rely on third-party services to pay gas fees, which can expose wallet activity. By enabling the pools themselves to handle fees, this update could lower costs and improve security for privacy-focused users.

What to watch

Developers are considering 66 proposals for the Hegotá upgrade, with FOCIL currently the only confirmed addition. The Frame Transactions package is among those under review. The timeline for the upgrade remains uncertain, but the technical groundwork is now being prioritized by the Protocol Architecture team.

Sources

  • decrypt.co — Core technical details on Frame Transactions, FOCIL, and the fee-paying mechanism.
  • coindesk.com — Context on the number of proposals and the upgrade's scope.
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