AZTEC LAUNCHES PRIVATE SMART CONTRACTS AS ETHEREUM ROLLUP

Last updated: June 20, 2025, 00:12 | Written by: Arthur Hayes

Imagine a world where you can participate in decentralized finance (DeFi) without revealing your every move to the public eye.A world where your transactions are shielded, your strategies remain your own, and you can enjoy the benefits of blockchain technology with enhanced privacy.This is the promise of Aztec, a pioneering privacy protocol built on Ethereum.Recently, Aztec unveiled its second iteration, a significant leap forward in bringing private smart contracts to the Ethereum ecosystem as a layer-2 rollup. The only true zero-knowledge rollup, built with a privacy-first UTXO architecture to allow developers to build privacy preserving programmable applications. It refers to the ability of Aztec smart contracts to have private (encrypted) state.This innovative solution offers not only enhanced privacy but also boasts significantly reduced transaction costs compared to standard Ethereum transfers.It's a game-changer for developers and users alike, opening up a new realm of possibilities for financial, identity, gaming, and other applications. Aztec.js JavaScript-based SDK to deploy and interact with smart contracts deployed to the Aztec Network. Aztec.nr A framework for creating Aztec smart contracts in Noir, a zkDSL enabling you to intuitively write zk programs. Notes UTXO data structure to store private notes, similar to Bitcoin or Zcash. TXE A blazingly fast testing framework forAztec aims to empower individuals with the optionality of privacy, ensuring users are in control of their data while benefiting from the security and composability of Ethereum.

Understanding Aztec: A Privacy-Focused Ethereum Scaling Solution

Aztec is not just another layer-2 scaling solution; it's a privacy-first protocol designed to address the growing need for confidentiality in the decentralized world. Bridge Contracts: 100 200 line interfaces connecting Ethereum smart contracts to Aztec s rollup SDK: a front-end toolkit enabling beautiful, seamless web interfaces to access Aztec ConnectOperating as a zero-knowledge (ZK) rollup, Aztec allows developers to build decentralized applications (dApps) with enhanced privacy capabilities while leveraging the security of the Ethereum mainnet. Concretely, private DeFi transactions can be bundled alongside zkDAI spends or Uniswap trades, all in one roll-up {{blog_divider}} Noir Language: Private Smart Contracts. Introducing Noir an open source scripting language that allows developers to easily write zkSNARK transactions compatible with Aztec 2.0.Let's delve into the core components that make Aztec unique:

ZK-Rollup: Aztec utilizes zkRollups, a type of layer-2 scaling solution that bundles multiple transactions off-chain and submits a single proof to the Ethereum mainnet.This dramatically reduces transaction fees and increases throughput.
Privacy by Design: Unlike other solutions where privacy is an afterthought, Aztec is built with privacy as a core principle.It employs a privacy-first UTXO architecture, allowing developers to create privacy-preserving programmable applications.
Noir Programming Language: Aztec introduces Noir, a custom domain-specific language (DSL) that simplifies the creation of ZK-SNARK transactions. Aztec 2.0 is both a scaling and a privacy solution rolled into one. Aztec, a privacy protocol developing on Ethereum, announced on Monday the launch of its second iteration, promising private transactions and smart contracts while being cheaper than standard transfers. The layer two solution adopted by Aztec relies on zkRollups, similar to Loopring or [ ]Developers can build private smart contracts without needing deep cryptography expertise.

What is a zk-Rollup and Why is it Important?

A zk-Rollup is a layer-2 scaling solution that processes transactions off the Ethereum mainnet.After processing, it posts a cryptographic proof (a ZK-SNARK) to the mainnet that validates all of the batched transactions.This proof confirms that all of the transactions included in the batch were processed correctly and adheres to all the relevant smart contract rules.

This process has multiple benefits:

Scalability: By processing transactions off-chain, zk-Rollups can handle a significantly higher volume of transactions than the Ethereum mainnet.
Reduced Gas Fees: Transactions are bundled together, resulting in significantly lower gas fees for users.
Security: zk-Rollups inherit the security of the Ethereum mainnet, as the validity proofs are verified on-chain.

The Power of Private Smart Contracts

Aztec's most groundbreaking feature is its support for private smart contracts.This allows developers to create dApps where the state of the contract, as well as the interactions with it, can be kept private.This opens up a world of possibilities for applications that require confidentiality, such as:

Private DeFi: Users can engage in DeFi activities like trading, lending, and borrowing without exposing their positions or strategies.
Confidential Identity Management: Individuals can manage their digital identities and credentials with greater privacy.
Secure Gaming: Game developers can create games with hidden information and strategic elements that are not visible to other players.
Data Privacy Applications: Organizations can utilize privacy preserving smart contracts to process and store sensitive data.

The composability of public and private functions allows developers to build a wide range of applications with varying degrees of privacy. Today we re announcing the sunset of Aztec Connect, our privacy infrastructure that served as the encryption layer for Ethereum.One week from today, deposits into the Aztec Connect contract both from zk.money and other front-ends like zkpay.finance will be disabled.This flexibility is a key differentiator for Aztec.

Noir: Empowering Developers to Build Private Applications

Noir, Aztec's custom programming language, is designed to simplify the development of ZK-SNARK transactions.It allows developers to write zk programs intuitively, without requiring in-depth knowledge of cryptography. Aztec launches private smart contracts as Ethereum rollup Octo Bitcoin, Cryptocurrency, Cryptocurrency News, Aztec 2.0 is both a scaling and a privacy solution rolled into one.This lowers the barrier to entry for building privacy-focused dApps.

Key features of Noir include:

User-Friendly Syntax: Noir is designed to be easy to learn and use, even for developers with limited experience in cryptography.
Abstraction: Noir abstracts away the complexities of ZK-SNARK proving systems, allowing developers to focus on the logic of their applications.
Security: Noir is designed with security in mind, helping developers to avoid common pitfalls that can lead to vulnerabilities in ZK-SNARK applications.

Aztec 2.0: Features and Functionality

Aztec 2.0 represents a significant upgrade to the protocol, bringing enhanced features and improved functionality.Key features of the rollup launch include:

Shielding: Users can deposit ETH and other ERC-20 tokens into the Aztec rollup, effectively ""shielding"" them from public view.
Private Sending: Users can send shielded tokens to other users privately, without revealing the transaction details on the Ethereum mainnet.
Unshielding: Users can withdraw their shielded tokens back to the Ethereum mainnet, making them visible again.
Emergency Unshield: A built-in ""escape hatch"" allows users to withdraw their funds even in the event of a problem with the Aztec rollup.

The initial launch supports ETH, with plans to add WBTC and other ERC-20 tokens in the near future.

How Does Aztec Achieve Privacy?

Aztec achieves privacy through a combination of techniques, including:

Zero-Knowledge Proofs (ZKPs): ZKPs allow users to prove that they have performed a computation correctly without revealing any information about the computation itself.
UTXO Architecture: Similar to Bitcoin and Zcash, Aztec uses a UTXO (Unspent Transaction Output) data structure to store private notes. Earlier this month, we announced the successful testing of the first decentralized upgrade process for an L2, with over 100 sequencers participating. Now, with the mission to bring programmable privacy to the masses, the Aztec Public Testnet is here and, for the first time ever, open to developers to build fully private applications on Ethereum.This makes it difficult to trace transactions and link them to specific users.
Encryption: Transaction data is encrypted to prevent unauthorized access.

Aztec Connect: Bridging the Gap Between Ethereum and Private DeFi

Aztec Connect is a set of tools designed to connect Ethereum DeFi protocols to the Aztec private rollup. This Layer 2 solution, a zk rollup, allows developers to build decentralized applications with enhanced privacy capabilities using Aztec's custom language, Noir, which enables the creation of smart contracts without the need for cryptography knowledge.It allows users to interact with their favorite DeFi applications privately, without exposing their positions or strategies to the public. Aztec 2.0 is both a scaling and a privacy solution rolled into one. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.Aztec Connect allowed for composable, private DeFi on Ethereum for the first time ever.

Key components of Aztec Connect include:

Bridge Contracts: These are interfaces (typically 50-100 lines of code) that connect Ethereum smart contracts to the Aztec rollup.
SDK: A front-end toolkit that enables developers to create beautiful, seamless web interfaces for accessing Aztec Connect.

Unfortunately, Aztec Connect has been sunsetted to focus on other features of the core protocol.

Aztec vs. Aztec is laser-focused on shipping Aztec Connect, a set of tools connecting Ethereum DeFi protocols to Aztec s private rollup, allowing for composable, private DeFi to be done on Ethereum for the first time ever. Aztec Connect is able to unlock private DeFi with the help of three components: Layer 1 DeFi protocols: your favorite EthereumOther Layer-2 Solutions

While other layer-2 solutions like Optimistic Rollups and zkSync offer scalability benefits, Aztec distinguishes itself through its focus on privacy.While they are effective at reducing transaction costs, Optimistic rollups, for example, act like a miniature version of the Ethereum blockchain, broadcasting transaction blocks to a layer-1 smart contract.The key difference lies in the optionality of privacy that Aztec provides.

Here's a comparison of different layer-2 solutions:

Optimistic Rollups: Focus on scalability, but offer limited privacy.
zkSync: Offers both scalability and some privacy features, but privacy is not as deeply integrated as in Aztec.
Aztec: Provides the highest level of privacy, with the option to keep all transaction data and smart contract state private.

The Future of Private Smart Contracts on Ethereum

Aztec's launch of private smart contracts as an Ethereum rollup represents a significant step towards a more private and scalable future for decentralized applications.As the demand for privacy continues to grow, solutions like Aztec are poised to play an increasingly important role in the Ethereum ecosystem.

What's Next for Aztec?

Aztec continues to evolve and improve its technology. Aztec launched with a focus on enabling smart contract developers to seamlessly incorporate private state into their applications. To achieve this vision, our team has trailblazed new technologies that have reshaped the possibilities for building privacy-preserving applications.Future plans include:

Expanding Token Support: Adding support for more ERC-20 tokens and other assets.
Improving Developer Tools: Making it even easier for developers to build private dApps.
Enhancing Scalability: Further optimizing the performance of the Aztec rollup.

Conclusion: Embracing Privacy in the Decentralized World

Aztec's groundbreaking work in bringing private smart contracts to Ethereum as a layer-2 rollup is paving the way for a new era of decentralized applications.By providing developers with the tools they need to build privacy-preserving dApps, Aztec is empowering individuals and organizations to participate in the decentralized world with greater confidence and control. The launch is supported by various entities within the Ethereum community, including NethermindEth and 0xHolonym, who emphasize the importance of privacy as a foundational element for Ethereum's future. The testnet utilizes client-side proofs and private smart contracts to ensure user data privacy.With its innovative use of zk-Rollups, the Noir programming language, and a privacy-first architecture, Aztec is a leading force in shaping the future of privacy on Ethereum. Aztec, a privacy protocol developing on Ethereum, announced on Monday the launch of its second iteration, promising private transactions and smart contracts while being cheaper than standard transfers. The layer two solution adopted by Aztec relies on zkRollups, similar to Loopring or ZkSync.This innovation not only enhances user experience and security but also unlocks new opportunities for decentralized finance, identity management, and beyond. Today s Launch: Aztec 2.0 zk.money Transaction Types. With today s rollup launch, you can submit ETH to the Aztec rollup contract and do the following: Shield; Send Privately; Unshield; Emergency Unshield (escape hatch) We ll soon introduce up to 3 further tokens such as WBTC, one by one and finally we ll add all ERC-20s to theIt's time to embrace the potential of private smart contracts and build a more equitable and confidential decentralized future. Aztec is defining the third category, private rollups. Optimistic Rollups. An optimistic rollup acts much like a miniature version of the Ethereum blockchain. It acts as its own network that hosts smart contracts and transactions. Periodically, the optimistic rollup will broadcast transaction blocks to a layer 1 smart contract.Consider exploring Aztec.js, the JavaScript-based SDK, and the Aztec.nr framework for building your own private applications.The future of privacy on Ethereum is here, and Aztec is leading the charge.