11 February, 2020 | AtoZ Markets – The Aztec protocol was launched on the Ethereum blockchain last week. It uses Zk-SNARKs technology that turns Ethereum Transactions Anonymous. However, Aztec is different from Zcash because it does not hide information about the senders and recipients of transactions. However, it is similar to Zcash that it requires a trusted configuration to be conducted. A configuration consists of a key requirement for all implementations of zk-SNARK while generating a few common parameters for more efficient computation.
Aztec Introduces Privacy Network
Aztec is designed to ensure a high level of confidentiality on the ETH blockchain. However, according to its creators, it also offers considerably reduce transaction costs. Besides, as expected in the near future, users will be able to free up their assets using the Aztec development toolkit.
Aztec CEO Thomas Walton-Pocock said on Friday that those who are using the system would be able to transact with private ethereum-based assets. The system is using the same zero-knowledge proofs (ZKP) as zcash. The protocol also launched a privacy software development kit (SDK) that allows users to mint their own private assets.
Aztec deploys the two essential components of its technology:
- Aztec Crypto Engine (ACE) - smart contract validator on Ethereum main net checks the accuracy of each private transaction.
- Privacy SDK - helps to abstract the complexities of Aztec cryptography, so that developers can easily integrate privacy into their dapps.
For now, network deployment is limited as it only supports zkDai, which is a private version of Maker stablecoin. More zero-knowledge tokens will release in the coming weeks. Full access to the personalization of the created tokens will give in two months, according to the company.
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Aztec Protocol Has Already Received Support
The Aztec project has already received support from ConsenSys, JPMorgan, A.Capital, Libertus Capital and Coinbase. Its team is trying in particular to realize the old dream of Vitalik Buterin. Previously, the founder of Ethereum has repeatedly stated that he wants to implement private transactions in his creation. Until now, it only achieves a certain degree of anonymity with third-party Ethereum mixers.
The mixers work according to the principles that Coins belonging to the service users divide into small portions. Then, they mix several times in random order and return to the users minus a commission. Thus, it becomes almost impossible to trace the source of the transfers.
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Aztec For Ethereum Anonymous Transfers
After the launch of Data Privacy, the Aztec network is still on track to deliver its Triptych of Privacy:
- Data Privacy: transaction amounts cryptographically hidden.
- User Privacy: People watching the network can no longer determine the identities of the sender and recipient.
- Code Privacy: make smart contracts private.
At the same time, Aztec is developing the solutions necessary to extend its privacy protection network.
Charlie Cowan, one of the developers of the project, plans to create an entire infrastructure based on privacy. He also noted that the issue of privacy of personal data might soon become an emergency issue. The financial activity of all users may soon be visible on the public blockchain.
Aztec is not the first protocol offering private transactions in the ethereum ecosystem. The accounting firm Ernst & Young (EY) unveiled a prototype for its own ZKP-powered privacy solution for businesses in October 2018.
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