People from the Ethereum Foundation launched the privacy service EthSystems - ForkLog

# Ex-employees of the Ethereum Foundation launched the privacy service EthSystems

The Ethereum Foundation (EF) privacy team spun out into the commercial company EthSystems. The project will focus on deploying blockchain solutions for institutional clients.

The startup was backed by Ethereum co-founder Joseph Lubin, as well as BitMine and SharpLink. The founders are former EF employees Mo Jallil, Oscar Toren, and Ariamann Challani. Previously, they worked in the fund’s institutional privacy group.

EthSystems plans to build tools based on zero-knowledge proofs. The solutions will allow banks and asset managers to execute large trades on the Ethereum network while keeping details of trading positions and client data confidential.

The company’s business model is based on paid consulting and building systems on a custom basis. Representatives of EthSystems explained that big business needs a commercial counterparty to work with, not a non-profit foundation. At the same time, the startup will continue to publish protocol specifications in open access.

“Privacy is not just an option, but a key requirement. Without data protection, major financial organizations won’t move to blockchain,” said EthSystems CEO Jallil.

Ahead of its public launch, the team spent a year working on open source. Developers have already introduced protocols for private transfers, bond issuance, and identification systems.

The project launch came amid a major restructuring at the Ethereum Foundation. Last month, the foundation cut 20% of staff and reallocated resources across five main areas. Along with EthSystems, other independent structures have emerged in the ecosystem—EthLabs and Ethereum Institutional.

Recall that in June, at the Ethereum Research forum, a proposal was published to redirect up to 10% of validator staking rewards to fund the ecosystem