What is Aztec Network (AZTEC)? Ethereum Layer 2 Focused on Privacy

In the blockchain world, transparency is often considered a key advantage, but data openness also poses new challenges related to user privacy. That's why Aztec Network offers a solution.

What is Aztec Network (AZTEC) and why is it starting to become a hot topic in the Ethereum ecosystem? Read this article to learn about its workings, technology, and roadmap!

Key Takeaways

• Aztec Network (AZTEC) is a zkRollup-based Layer 2 on Ethereum that focuses on the privacy of transactions and user data.
• Aztec allows smart contracts to run both privately and publicly within a single ecosystem.
• Zero-knowledge proof technology is the main foundation for maintaining confidentiality without compromising blockchain security.

What is Aztec Network (AZTEC)?

Image Source: Aztec Network

Aztec Network (AZTEC) is an Ethereum Layer 2 specifically designed to bring privacy to blockchain usage.

While Ethereum is inherently transparent, allowing all transactions to be publicly visible, Aztec attempts to strike a balance by allowing certain transactions and data to remain private.

This project uses zkRollup technology, which is a method that combines multiple transactions into a single cryptographic proof before sending it to the Ethereum mainnet. In this way, Aztec is able to maintain efficiency while providing privacy protection.

Aztec was developed by a team of experienced cryptographers who aim to open up opportunities for developers to build secure blockchain applications without sacrificing user privacy.

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How Aztec Network (AZTEC) Works

One of the things that sets Aztec Network apart from other Layer 2 platforms is its approach to privacy. The project isn't fully compatible with the EVM, but instead uses its own virtual machine specifically designed to support private functions.

Here's how Aztec Network (AZTEC) works:

1. Private Functions: Private functions allow logic and data execution to occur directly on the user's device. This prevents sensitive information from being published to the blockchain.

2. Public Functions: In addition to private features, Aztec also supports public functions. This is essential for applications that require transparency, such as validating specific data or interacting with smart contracts.

3. Private State: User data is stored encrypted, allowing only the data owner to access it. This approach enhances security, particularly for financial applications or digital identity applications.

4. Public State: If needed, applications can still use public data stored in an open blockchain structure.

5. Composability: Aztec allows a combination of private and public execution within a single application, giving developers great flexibility in designing the system.

6. L1 ↔ L2 Messaging: Aztec also supports communication between the Ethereum (Layer 1) and Aztec (Layer 2) networks, for both public and private data.

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The Technology Behind Aztec Network (AZTEC)

The advantages of Aztec Network lie not only in its concept, but also in the technology used to support privacy.

Here is the technology behind Aztec Network (AZTEC):

1. Zero-Knowledge Proving System: Aztec uses proof systems like Plonk and Honk, which increase the efficiency of cryptographic proof generation. This technology allows transaction validation without revealing the transaction details themselves.

2. Noir Programming Language: Aztec developed a programming language called Noir, specifically designed for creating smart contracts with privacy features. Its structure is similar to Rust, making it easier for modern developers to understand.

3. Client-Side Proving: Part of the authentication process takes place on the user's device. This ensures that sensitive data remains on the user's side and is not shared across the network.

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Roadmap of Aztec Network (AZTEC)

Aztec Network (AZTEC) has a fairly ambitious roadmap, especially in terms of decentralization and developer adoption.

Some development focuses include:

1. Network Decentralization: Aztec developed a permissionless network of sequencers and provers, so that transaction validation does not depend on a single party.

2. Decentralized Governance: Going forward, network changes will be determined through a voting mechanism by network participants.

3. Community Development: Aztec also actively encourages community participation through developer programs, private computing research, and cross-chain integration.

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Conclusion

Aztec Network (AZTEC) is a significant innovation in the Ethereum ecosystem, especially for users and developers who need privacy without sacrificing blockchain security.

With zkRollup technology, a zero-knowledge proof system, and a hybrid approach between public and private functions, Aztec opens up new opportunities for more secure and flexible Web3 applications.

If the privacy trend in blockchain continues to grow, Aztec has the potential to become a key foundation for the next generation of decentralized applications.

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FAQ

What is Aztec Network (AZTEC)?

Aztec Network is a privacy-focused Layer 2 on Ethereum, allowing transactions and smart contracts to run confidentially using zero-knowledge proof technology.

What are the main advantages of Aztec over other Layer 2s?

Its main advantage is the ability to run private and public functions within a single ecosystem, allowing applications to remain flexible without sacrificing privacy.

Is Aztec compatible with EVM?

Not entirely. Aztec uses its own virtual machine specifically designed to support privacy.

What is Noir in Aztec Network?

Noir is a programming language developed to facilitate the creation of smart contracts with privacy features on the Aztec network.

Who is Aztec Network suitable for?

Developers who want to build applications with high privacy requirements, such as private DeFi, digital identity, or sensitive data-driven applications.