Aztec Network Launches Public Testnet for Encrypted dApps

Aztec Network, a privacy-focused Ethereum layer-2 protocol, has launched its public testnet, inviting developers to build encrypted decentralized applications (dApps). The launch, announced on May 1, marks a significant step in Aztec’s mission to make privacy programmable and secure in the web3 ecosystem. This development follows years of research, development, and internal testing with more than 100 sequencers.

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The testnet utilizes advanced zero-knowledge (ZK) techniques to protect user data while maintaining Ethereum compatibility. This allows developers to build apps that can selectively conceal user data on-chain without ceding control to any centralized party. Aztec’s in-house ZK proving system, PLONK, powers this privacy layer. PLONK enables fast verifiable proofs while supporting complex encrypted computations. It has been used previously in Aztec’s zk.money and Aztec Connect products.

In addition to PLONK, Aztec has introduced Noir, its own programming language for zero-knowledge applications. Noir simplifies the development of private smart contracts without requiring in-depth cryptographic knowledge. Developers can now focus on functionality while integrating strong privacy guarantees. According to Aztec co-founder Zac Williamson, “The future of blockchain privacy is not black and white. Developers can leverage Aztec to build dApps with privacy functionality that’s natively integrated with Ethereum’s existing infrastructure.”

Aztec’s release of the testnet is supported by a $100 million Series B funding round. The funding is aimed at scaling encrypted smart contracts to support real-world use cases such as private DeFi, secure identity systems, and enterprise applications. The investment was driven by Aztec’s ability to make privacy both scalable and accessible in web3.

With the public testnet, Aztec is positioning itself as a key infrastructure provider for Ethereum’s privacy-centric future. The network leverages zero-knowledge technology to encrypt user balances and transactions on Layer 2, ensuring that details such as the sender, recipient, and transaction itself remain private. This development is a crucial step towards achieving a more secure and private blockchain environment.

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The programmability of Aztec is facilitated by Noir, a Rust-like language for zero-knowledge circuits developed by the company. Noir allows developers to write smart contracts that can perform shielded loans or private voting without needing to learn cryptography. This feature simplifies the process for developers to build decentralized applications (dapps) with privacy features that seamlessly integrate with Ethereum’s existing infrastructure.

Unlike most Layer 2 solutions, Aztec makes significant modifications to the chain’s execution layer. Public transactions on Aztec are executed through its custom Aztec Virtual Machine (AVM), while private transactions are offloaded to a client-side environment known as the Private eXecution Environment (PXE). PXE is used to generate proofs and run smart contract logic privately. Transaction proofs are then aggregated into single proofs for Ethereum settlement. This architecture ensures that privacy is maintained while leveraging the security of the Ethereum network.

Client-side generation of zk proofs is typically expensive, but Aztec’s new Layer 2 keeps costs down. This is largely thanks to its PLONK proving system, which makes it simpler to generate client-side proofs on expensive hardware. PLONK was co-invented by Aztec co-founder and CEO Zachary Williamson. The company’s client-side Prover incorporates the latest in PLONK research with the Protogalaxy folding scheme and a unique technique called Goblin Plonk to accelerate recursion. Additionally, Aztec built its own programming language, Noir, from scratch to compile programs directly into zero-knowledge circuits, bypassing the overheads seen with zero-knowledge virtual machines.

Contrary to popular belief, most zk rollups do not actually leverage zero-knowledge technology for privacy encryption. Instead, they use the technology primarily for the size compression of transactions to scale throughput without encrypting user data. Aztec, however, applies zk proofs not just for verification but also to enable end-to-end encryption of transaction metadata. Privacy is optional, aligning with Aztec’s goals of developing a chain that offers flexible privacy and selective disclosure.

This architecture is not possible on the Ethereum Layer 1 today, where all details would be publicly exposed. It is also not possible on other Layer 1 chains like Monero or Zcash, which allow for private payments but lack smart contract programmability. Aztec’s approach challenges the current view of blockchain privacy as an all-or-nothing proposition, offering a more nuanced solution.

Aztec’s testnet already has over 100 sequencers in its Devnet and Provernet networks, paving the way for decentralization starting from day one. This development is a significant milestone in the quest for onchain privacy, smart-contract programmability, and decentralization, positioning Aztec as a leader in the field of privacy-focused blockchain solutions. The launch of the public testnet is a testament to Aztec’s commitment to advancing blockchain technology and providing developers with the tools they need to build secure and private applications.