According to Foresight News, Vitalik Buterin has recently proposed Keyed Nonces, a new mechanism that could enhance Ethereum’s state scalability while also supporting on-chain privacy solutions. The proposal addresses a key storage challenge: if on-chain privacy transactions maintain 2,000 TPS over eight years, they will generate approximately 500 billion nullifiers, and these nullifiers cannot be cleaned up. Storing all nullifiers in the existing general state would impose significant pressure on node storage and decentralization. Keyed Nonces will create dedicated storage types to suit specific use cases, such as sharded storage, where nodes only hold part of the data, or Bloom Filter optimization, which reduces verification overhead to about 8 bits per nullifier. Buterin suggests migrating most use cases to more specialized, more cost-effective storage, while retaining a complete dynamic state for applications that require a high degree of flexibility, such as DeFi.