‘Trustless Trusted Third Parties’ Are Possible but Not Yet Practical: Vitalik Buterin

 

By Abhinav Tewari // June 29, 2026 @ 01:42 PM Make AlphaWire Logo preferred on Google News
‘Trustless Trusted Third Parties’ Are Possible but Not Yet Practical- Vitalik Buterin. Source: ChatGPT

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Points of Focus

  • Buterin calls obfuscation the most powerful primitive ever conceived in cryptography.
  • It can simulate a universal trusted third party, a concept from Szabo’s 1997 framework.
  • Secure obfuscation is now theoretically possible but remains “galactic” in cost.

 

Ethereum co-founder Vitalik Buterin published a technical blog post on June 29 describing obfuscation, technically known as indistinguishability obfuscation (iO), as “the most powerful primitive that has been conceived in cryptography.”

 

 

His argument: obfuscation can simulate something cryptographers have chased for decades, a universal “trustless trusted third party,” but the cryptographic machinery required to build it securely remains, in his own words, “literally galactic” in computational cost.

 

What obfuscation actually does

According to Buterin, obfuscation converts a program into an encrypted version that produces identical outputs for any given input, while hiding everything about how it works internally. The concept traces back to a 1997 framework by computer scientist Nick Szabo called “the God Protocols,” which described cryptographic systems as attempts to replicate the behavior of an imaginary, perfectly honest, trusted third party without actually trusting anyone.

 

The God Protocols. Source: Nick Szabo
The God Protocols. Source: Nick Szabo

 

Buterin notes that encryption replicates a trusted postal service, and zero-knowledge proofs replicate a trusted verifier who checks data without seeing it. Obfuscation, he argues, can replace both and go considerably further because it can simulate a trusted party for almost any protocol imaginable, not just narrow categories like messaging or verification.

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Combined with a blockchain, which can handle the “stateful” problems obfuscation alone cannot (since an obfuscated program can be copied and run multiple times, making it unsuitable for anything resembling money on its own), Buterin said the pairing could enable systems like secure, private, collusion-resistant voting with no need for a trusted committee overseeing the process, removing what cryptographers call an “M-of-N trust assumption” entirely.

 

Why it isn’t practical yet

The catch, as Buterin laid out, is two decades deep.

In 2001, researchers proved that the ideal version of obfuscation, one that reveals absolutely nothing beyond a program’s outputs, is mathematically impossible to build. That forced the field to pursue a weaker but still powerful target: indistinguishability obfuscation, which only guarantees that two obfuscated programs with identical functionality look indistinguishable from each other.

Buterin wrote that after about 20 years of failed attempts and constructions that relied on ingredients that did not yet exist, researchers have finally found ways to build indistinguishability obfuscation under reasonable security assumptions, which is genuine theoretical progress. The problem is runtime.

The current best-known constructions require stacking multiple layers of primitives resembling fully homomorphic encryption inside one another, repeated for every bit of input, producing what Buterin described as a technically polynomial runtime that is nonetheless “galactic” in practice, far beyond anything usable today.

 

Trustless third-party stack. Source- Vitalik Buterin
Trustless third-party stack. Source: Vitalik Buterin

 

Two paths forward

Buterin offered two reasons for optimism.

  • The first draws a direct comparison to SNARKs, the succinct cryptographic proofs that now underpin much of Ethereum’s scaling roadmap: SNARKs were similarly impractical in 2010 before researchers spent years stripping away orders of magnitude of computational overhead. He suggests obfuscation could follow the same trajectory, eventually reaching a point where a heavy GPU could complete a computation in roughly a day, a bar he notes is “actually enough for many interesting applications” despite still sounding extreme.
  • The second path involves developing entirely new cryptographic assumptions and improving at evaluating which of those assumptions can be trusted to be genuinely secure.

Buterin frames the post as the first in a series, with this installment focused specifically on what he calls the most mathematically rigorous, if also the least efficient, family of obfuscation constructions developed to date.

 

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Abhinav Tewari

Abhinav is a researcher and author specializing in cryptocurrency, blockchain, and Web3, translating complex protocols into actionable insight for institutions and builders. Drawing on experience across digital marketing, management, and research, he focuses on tokenization, stablecoins and payments, DeFi, and real‑world assets, with rigorous analysis of protocol economics, security, governance, and layer‑2 scalability.

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