Ethereum co-founder Vitalik Buterin has raised fresh concerns over how identity is managed in the blockchain space, urging the crypto community to move away from singular digital ID solutions.

In a blog post published on June 28, Buterin argued that zero-knowledge (ZK) technology has significantly improved privacy protections. However, he noted that it also introduces new risks when applied to rigid identity structures.

Downsides of a ZK-Wrapped ID

ZK technology can allow individuals to verify personal attributes without revealing underlying data, and it’s already in use across various projects, including Worldcoin’s World ID.

However, Buterin cautions that simply wrapping traditional IDs in ZK proofs doesn’t address core vulnerabilities in identity systems.

He noted that one major risk of this system is the push toward a “one-identity-per-person” model. According to Buterin, this design could strip away the benefits of pseudonymity and open the door to coercion.

“The practical level of pseudonymity that you get is plausibly lower than today’s status quo, and so under one-per-person ID, even if ZK-wrapped, we risk coming closer to a world where all of your activity must de-facto be under a single public identity,” Buterin said.

The Ethereum co-founder also highlighted practical limitations, s