Privacy on Ethereum: Aztec Protocol is Implemented

On February 1, Aztec team has officially announced launch of its privacy network on Ethereum platform. A technology based on ZCash allows to cryptographically protect transaction volumes with confidential zk tokens.

Now the network has limited support only for zkDai, a confidential variant of MakerDAO’s stablecoin. Other zero knowledge tokens are expected within the following several weeks, and the full-fledged deployment of custom digital assets creation will happen in two months, according to the announcement.

Similarly to ZCash (ZEC), the Aztec protocol employs Zk-SNARKs for validating encrypted transactions. When transfer is generated, a proof of correctness is created, as the transaction is encrypted.

The system runs on Aztec’s Cryptography Engine smart contract, which may be leveraged to validate the transactions. Contracts are running on the ”notes” system, which is similar to Bitcoin’s structure of inputs and outputs. However, unlike ZCash, now Aztec does not conceal sender’s and recipient’s identities on Ethereum network.

Aztec was required to run a trusted setup ceremony, just like ZCash. This requirement is a central one for all zk-SNARK realizations, as it creates a combination of common parameters which guarantees effective computation.

Further developments promise private smart contracts

Aztec aims at delivering its ”Triptych of privacy”, which would totally conceal a certain part of the Ethereum blockchain. Now it conceals senders and recipients, and finally smart contracts would become absolutely private.

Thomas Walton-Pocock, Aztec’s CEO, said that it may be achieved this year:

“Our priority is to deploy PLONK to ACE in 2020. PLONK is the superfast Universal SNARK developed by AZTEC CTO Zac Williamson and AZTEC Chief Scientist Ariel Gabizon, which will eventually allow private smart contracts to execute with just one trusted setup.”