Ethereum Developers Propose Zero-Knowledge System to Protect AI User Privacy

Ethereum co-founder Vitalik Buterin and Ethereum Foundation AI lead Davide Crapis have outlined a proposal to use zero-knowledge (ZK) cryptography to protect user privacy in artificial intelligence applications while maintaining safeguards against abuse.

Zero-Knowledge Proofs for Private AI API Calls

The proposal addresses growing concerns around privacy in large language model (LLM) usage. Every interaction with an AI chatbot generates an API call, often tied to identifying information such as email addresses or payment details. According to the developers, current systems force providers to choose between identity-based access, which compromises privacy, or onchain payments per request, which can be costly and traceable.

Their suggested model allows users to deposit funds, such as USDC, into a smart contract and then generate multiple AI queries anonymously. Zero-knowledge proofs would confirm that payments are valid and within the deposited limit, without revealing the user’s identity or linking individual requests.

Anti-Spam Controls and Onchain Enforcement

To prevent misuse, the system includes rate-limit mechanisms and a dual-staking structure. If a user attempts fraud, such as double-spending, their deposit could be claimed or burned. Violations of service terms would trigger onchain penalties while preserving anonymity.

The framework aims to balance privacy, accountability and efficiency as AI adoption accelerates globally.

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