Aztec: an L2 network built on the Zero-Knowledge protocol
Aztec Network is a privacy-first zkRollup on Ethereum. The protocol was designed to make Ethereum payments more affordable and anonymous.
Aztec develops an Ethereum trading protocol that enables private transactions across the public blockchain. Aztec, in other words, is an L2 solution that employs zero-knowledge proofs to ensure the confidentiality of any shared digital asset on Ethereum.
Mechanics and operation principles:
Aztec Network is the first private ZK-rollup on Ethereum, enabling decentralized applications to access privacy and scale. Aztec is secured by its industry-standard PLONK proving mechanism, which is used by various zero-knowledge scaling projects such as Mina, Dusk, Zcash, and zkSync.
At Aztec, they believe that decentralization is premised on individual rights. Users will face threats to their ability to choose how to live their lives and earn if privacy is not widely accessible.
What are Aztec's objectives?
1. Privacy
Aztec is a zero-knowledge cloud service built on a privacy-focused architecture. As Aztec's slogan says, “Privacy first. Privacy second.”
2. Accessibility
Aztec Connect enables users to access DeFi services privately on Ethereum while saving money on fees.
3. Compliance
A software-closed system supports opt-in auditability and compliance while fully preserving confidentiality.
Funding rounds:
Aztec Network raised a total of $119 million in four rounds of funding from large funds, including Consensys, a16z, Paradigm, and even Vitalik Buterin (the founder of Ethereum).
The most recent round of investment was completed not long ago, specifically on December 15, 2022, for $100 million with the lead investor a16z.
Ecosystem
Aztec Network's zk.money project is an open source L2 network with a focus on scalability and privacy. It aims to provide affordable, private crypto payments with zero-knowledge proofs.
Since its launch, zk.money has had over 75,000 registered users, 225,000+ transactions for over $80 million in total.
zkMoney currently allows for anonymous money transfers as well as private investments in the DeFi sector. AAVE, Lido, and Elemental Finance are integrated platforms that allow you to invest funds privately and earn money from staking. Integrations are being developed with various other projects, such as Compaund, Liquity, mStable, Index Coop, Reflexer, and Ribbon.
The protocol is in its second stage and is fully operational. It was deployed on the mainnet 6 months ago.
After everything has been considered, it becomes clear that Tornado Cash and this project are somewhat similar. For instance, both aim to increase the number of anonymous transactions in the market. On the one hand, this is problematic because some people could use it to launder money obtained from illicit activities. But on the other hand, each of us has the right to anonymity in the new era of Web3.
Therefore, it’s up to you whether to use the services of such a project.
