Aztec and Cheap Privacy
Top of Mind
Transparency in crypto can be a double-edged sword. While it may foster trustlessness and accountability, it can also exclude those who value privacy. Enter privacy-focused blockchain protocols. These networks allow for secure, confidential transactions that safeguard sensitive information while maintaining trustlessness. Aztec Network, a privacy-focused Ethereum Layer-2 (L2), is leading the charge.
Aztec announced a $100 million Series B led by Andreesen Horowitz in December. They have indicated plans to work toward a testnet launch sometime in 2023. Transparency is at the core of Ethereum’s protocol layer, and Aztec provides encryption for Ethereum accounts and transactions in two ways:
- Shielded transactions for any ERC-20 token
- Shielded DeFi through Aztec Connect
In 2022, Aztec launched Aztec Connect, a bridge between Aztec’s privacy-secure rollup and Ethereum dapps. It has Aave, Lido, and Curve under its belt, among others. Since its launch, the bridge has seen a gradual increase in total value locked (TVL), with the news of the recent fundraise marking the start of the steep increase.
Eshita is a Research Analyst at Messari focused on Web3 topics. Previously, she was a Venture Fellow at Bloomberg Beta and prior to that was working on data at Shareworks by Morgan Stanley.