Vitalik's ZK Proposal for LLM Privacy
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Contents
Source: Davide Crapis
ZK-Based System for LLMs from Ethereum Foundation
Ethereum Foundation AI leader Davide Crapis and co-founder Vitalik Buterin proposed an innovative system that keeps user interactions with large language models (LLMs) private using zero-knowledge proofs (ZK proofs) and other methods. Users can make thousands of API calls anonymously, securely, and efficiently by depositing funds once. Providers gain payment guarantees and spam protection, while requests become unlinkable to identities.
Current LLM Access Issues and ZK Solution
Current systems create privacy risks with identity-based access; on-chain payments per request are slow and traceable. In the proposal, users deposit stablecoins like USDC into a smart contract. Requests are anonymized using ZK proofs with rate-limit nullifiers. This effectively addresses the privacy issues frequently discussed on ETH detailed analysis platforms.
Fraud Protection with Dual Staking
Dual staking system is critical: Users comply with terms under the risk of deposit burning, while providers prevent abuse by staking. Upon violation detection, deposits are burned and recorded on-chain. This mechanism minimizes the risk of sensitive data leakage. ZK-SNARKs-based nullifiers strengthen rate-limits by preventing reuse.
| Staking Layer | Purpose | Risk |
|---|---|---|
| User Stake | Rate-limit compliance | Deposit burning |
| Provider Stake | Spam prevention | Penalty deduction |
ETH ETF Flows and Institutional ETH Demand
This proposal boosts confidence in the ETH ecosystem, while ETF flows on February 9, 2026, showed a net inflow of 57 million dollars for ETH. Bitcoin ETFs recorded 144.9 million dollars inflow, while Goldman Sachs holds 1 billion dollars worth of ETH. Interactive Brokers also launched Coinbase Nano ETH futures 24/7. These developments support ZK innovations.
| ETF Type | Net Inflow (09.02.2026) |
|---|---|
| Bitcoin ETF | 144,9 Million $ |
| Ethereum ETF | 57,0 Million $ |
ETH Price Technical Analysis: RSI Oversold
ETH price 1.972,69$ (-0,15% 24h), RSI 30,14 (oversold) in downtrend. EMA 20: 2.328$. Strong supports:
- S1: 1.747,80$ (⭐75/100, -11,40% distance)
- S2: 1.964,78$ (⭐71/100, -0,40%)
Resistances: R1 2.156,79$ (+9,33%), R2 2.022,45$ (+2,52%). ZK news could trigger a rebound. Ideal for ETH futures.
ZK and ETH Future Interaction
ZK coins (e.g., ZKsync) could rise with this proposal. ZK integration in ETH Layer-2s brings LLMs to blockchain. Revolutionary for sensitive AI data; appeals to players like institutions holding 1 billion$ worth of ETH. ZK detailed analysis recommended.