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Ethereum co-founder Vitalik Buterin has proposed the use of keyed nonces to enhance privacy protocols and potentially serve as a new state scalability strategy for Ethereum. This approach involves creating specialized storage types for specific use cases, allowing for significant scalability while maintaining decentralization. Buterin highlighted that if on-chain private transactions reach 2000 TPS over eight years, it could generate approximately 500 billion non-prunable nullifiers. By storing these in a dedicated nullifier storage, rather than the current dynamic state, Ethereum could better preserve decentralization.Buterin suggests that if most usage transitions to more specialized, lower gas cost state forms, Ethereum can maintain decentralization and high scalability. This would allow the full dynamic state to be reserved for applications like DeFi that require comprehensive functionality.

DEFI+0.40%ETH+0.23%

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