What happened?
Vitalik Buterin proposed removing the modexp precompile he originally created because it creates huge verification bottlenecks for zero-knowledge proofs and adds consensus risk. He recommends replacing it with standard EVM bytecode that does the same work but makes proof generation much simpler, even if gas costs rise. The change is part of a wider push toward privacy-first infrastructure and technical upgrades like the GKR protocol to speed up ZK verification.
Who does this affect?
This mainly hits developers and projects building zero-knowledge EVMs, rollups, and layer-2 solutions that struggle with modexp’s heavy proof costs. It also matters to the small set of apps using RSA-style modular exponentiation — Buterin says that’s about 0.01% of users — who may need to rework their contracts or accept higher gas fees. At the same time, institutional adopters and privacy-focused projects stand to benefit from better scaling and fewer consensus edge cases.
Why does this matter?
Faster, simpler ZK proof generation would speed rollups and lower verification friction, making Ethereum more scalable and attractive for big users and enterprises. That could boost demand for ETH, increase activity on layer-2s, and support growth in tokenized real-world assets and stablecoins on Ethereum, while causing short-term pain for apps relying on the old precompile. Overall it’s a move that favors long-term market competitiveness, privacy, and institutional adoption of the Ethereum ecosystem.