Ethereum developers need to rethink their approach to application creation by experimenting with new DeFi models and AI integration, while adhering to core principles. This was stated by 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.
— vitalik.eth (@VitalikButerin) March 5, 2026
We should not compromise on core properties: censorship resistance, open source, privacy,…
According to him, the ecosystem must remain committed to censorship resistance, open source, privacy, and security. He grouped these aspects under the acronym CROPS. Developers should be bolder in experimenting with dapp architecture.
“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 that the next wave of innovation will emerge at the application level.
A key focus should be privacy, which the Ethereum co-founder calls the foundation of freedom. To make it a fundamental characteristic, a significant portion of the current application stack, which was not originally 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 confidentiality.
The Ethereum Foundation is also actively working in this direction. 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, much of decentralized finance might be reduced to futures markets built on oracles, moving away from numerous disparate protocols to a small set of fundamental primitives.
Oracles may also change. One idea is to generate verifiable data streams by combining cryptographic proofs with outputs from multiple LLMs and trusted sources.
AI has the potential to transform user experience. Integrating intelligent features could reduce reliance on traditional wallet interfaces and separate applications, replacing them with more natural interaction scenarios.
The next iteration of wallets will be closely tied to artificial intelligence, Buterin believes. However, in cases involving large transactions, he advised against trusting LLMs directly. The optimal scenario would be:
“AI proposes a plan, a local lightweight client simulates it, the user sees the action and the simulation result, and confirms manually.”
The Ethereum co-founder also urged a reevaluation of the role of L2 solutions. He stated that they should complement the base infrastructure rather than merely duplicating its functionality on the side. Previously, the programmer noted that as the blockchain scales, the need for second-layer networks diminishes.
“It's also about culture. For me and many others, this is an important part of what lies behind the 'Milady story.' Yes, it's a silly meme. […] But the essence is simple: take off the jacket and tie. And if you have them on, be ready to grab a glass and spill wine on yourself, so you have no choice but to get rid of them and regain your freedom and flexibility,” Buterin emphasized.
Recall that in early March, he presented a plan for two key changes to the network's execution layer: transitioning to a binary state tree and a long-term replacement for the EVM.