Ethereum co-founder Vitalik Buterin has emphasized the need for enhanced privacy and decentralized identity solutions within the cryptocurrency ecosystem. He criticized the prevalence of "walled gardens" that threaten decentralization and advocated for the use of zero-knowledge proofs to ensure secure identity verification. Currently, over 750 projects are developing identity systems on the Ethereum blockchain. Despite advancements in enterprise and personal identity tools, government-led digital identity initiatives have raised privacy concerns among users.