The next eight years in the crypto industry will be marked by a focus on privacy, according to entrepreneur Balaji Srinivasan. He divides the history of the sector into three major phases.
The three eras of crypto.
Proof of work: 2009-2017
Programmability: 2017-2025
Privacy: 2025-203Xpic.twitter.com/YIpJN2OMZo— Balaji (@balajis) November 13, 2025
According to the expert, the period from 2009 to 2017 was dominated by the Proof-of-Work algorithm. The subsequent era from 2017 to 2025 is defined as the age of programmability, while the next phase of technological evolution will span from 2025 to the early 2030s.
This perspective is shared by experts from a16z Crypto and Coinbase Ventures, who have included privacy in their list of key priorities for 2026.
A Shift in Narrative
In October, entrepreneur Naval Ravikant described Bitcoin as “insurance against fiat,” and the anonymous coin Zcash (ZEC) as “a hedge against the first cryptocurrency.”
Bitcoin is insurance against fiat.
ZCash is insurance against Bitcoin. https://t.co/rqMrR3bW7O
— Naval (@naval) October 1, 2025
Nick Tang from Finality Capital Partners told The Block that this statement “became a market catalyst.”
Over the past three months, the price of ZEC has surged by more than 678%, according to CoinGecko. Interest has also returned to other privacy-focused cryptocurrencies, including Monero (XMR). During the same period, the price of XMR jumped nearly 30%.
Institutional Demand
However, the rally in anonymous coins has merely highlighted fundamental changes. As financial activity moves on-chain, the lack of privacy has become a concern.
“Institutional players and large traders cannot operate effectively if their positions and strategies are visible to everyone in real time. Ordinary users are also reluctant to broadcast their financial lives,” noted Jonathan King from Coinbase Ventures.
Zama’s head, Rand Hindi, added that traditional finance will never use public blockchains without robust privacy features.
Experts believe that privacy will become a prerequisite for the widespread adoption of technology.
From Coins to Utility
Unlike previous cycles, the focus has now shifted from privacy coins to applications with built-in data protection. As an example, Robot Ventures partner Anirudh Pai cited the perp-DEX Lighter and the crypto card Payy.
Previously, the spread of technology was hindered by usability challenges and regulatory pressure. Anonymous cryptocurrencies were often associated with money laundering, and their functionality was limited to simple transfers.
“Users need confidential smart contracts, not just privacy coins,” emphasized Hindi.
Boris Revsin from Tribe Capital believes that technology will become a default feature. The absence of privacy will be perceived as a vulnerability.
Risks and Obstacles
The main barrier for the sector remains regulatory uncertainty. Hindi and King are confident that developers will need to create systems that meet compliance requirements while preserving transaction secrecy.
The second barrier, according to Tang, is usability: the average user will not pay extra for privacy if public transactions are cheaper and more convenient.
Back in November, ForkLog explored whether Zcash has a chance to become the main coin for cypherpunks.