Special thanks to Santiago Palladino, Phil Windle, Alex Gherghisan, and Mitch Tracy for technical updates and review.

On September 17th, 2025, a new network upgrade was deployed, making Aztec more secure and flexible for home stakers. This upgrade, shipped with all the features needed for a fully decentralized network launch, includes a completely redesigned slashing system that allows inactive or malicious operators to be removed, and does not penalize home stakers for short outages. 

With over 23,000 operators running validators across 6 continents (in a variety of conditions), it is critical not to penalize nodes that temporarily drop due to internet connectivity issues. This is because users of the network are also found across the globe, some of whom might have older phones. A significant effort was put into shipping a low-memory proving mode that allows older mobile devices to send transactions and use privacy-preserving apps. 

The network was successfully deployed, and all active validators on the old testnet were added to the queue of the new testnet. This manual migration was only necessary because major upgrades to the governance contracts had gone in since the last testnet was deployed. The new testnet started producing blocks after the queue started to be “flushed,” moving validators into the rollup. Because the network is fully decentralized, the initial flush could have been called by anyone. The network produced ~2k blocks before an invalid block made it to the chain and temporarily stalled block production. Block production is now restored and the network is healthy. This post explains what caused the issue and provides an update on the current status of the network. 

Note: if you are a network operator, you must upgrade to version 2.0.3 and restart your node to participate in the latest testnet. If you want to run a node, it’s easy to get started.

What’s included in the upgrade? 

This upgrade was a team-wide effort that optimized performance and implemented all the mechanisms needed to launch Aztec as a fully decentralized network from day 1. 

Feature highlights include: 

• Improved node stability: The Aztec node software is now far more stable. Users will see far fewer crashes and increased performance in terms of attestations and blocks produced. This translates into a far better experience using testnet, as transactions get included much faster.

• Boneh–Lynn–Shacham (BLS) keys: When a validator registers on the rollup, they also provide keys that allow BLS signature aggregation. This unlocks future optimizations where signatures can be combined via p2p communication, then verified on Ethereum, while proving that the signatures come from block proposers.

• Low-memory proving mode: The client-side proving requirements have dropped dramatically from 3.7GB to 1.3GB through a new low-memory proving mode, enabling older mobile devices to send Aztec transactions and use apps like zkPassport. 

• AVM performance: The Aztec Virtual Machine (AVM) performance has seen major improvements with constraint coverage jumping from 0% to approximately 90-95%, providing far more secure AVM proving and more realistic proving performance numbers from provers. 

• Flexible key management: The system now supports flexible key management through keystores, multi-EOA support, and remote signers, eliminating the need to pass private keys through environment variables and representing a significant step toward institutional readiness. 
• Redesigned slashing: Slashing has been redesigned to provide much better consensus guarantees. Further, the new configuration allows nodes not to penalize home stakers for short outages, such as 20-minute interruptions. 

• Slashing Vetoer: The Slasher contract now has an explicit vetoer: an address that can prevent slashing. At Mainnet, the initial vetoer will be operated by an independent group of security researchers who will also provide security assessments on upgrades. This acts as a failsafe in the event that nodes are erroneously trying to slash other nodes due to a bug.

With these updates in place, we’re ready to test a feature-complete network. 

What happened after deployment? 

As mentioned above, block production started when someone called the flush function and a minimum number of operators from the queue were let into the validator set. 

Shortly thereafter, while testing the network, a member of the Aztec Labs team spun up a “bad” sequencer that produced an invalid block proposal. Specifically, one of the state trees in the proposal was tampered with. 

The expectation was that this would be detected immediately and the block rejected. Instead, a bug was discovered in the validator code where the invalid block proposal wasn't checked thoroughly enough. In effect, the proposal got enough attestations, so it was posted to the rollup. Due to extra checks in the nodes, when the nodes pulled the invalid block from Ethereum, they detected the tampered tree and refused to sync it. This is a good outcome as it prevented the attack. Additionally, prover nodes refused to prove the epoch containing the invalid block. This allowed the rollup to prune the entire bad epoch away. After the prune, the invalid state was reset to the last known good block.

The prune revealed another, smaller bug, where, after a failed block sync, a prune does not get processed correctly, requiring a node restart to clear up. This led to a 90-minute outage from the moment the block proposal was posted until the testnet recovered. The time was equally split between waiting for pruning to happen and for the nodes to restart in order to process the prune.

The Fix

Validators were correctly re-executing all transactions in the block proposals and verifying that the world state root matched the one in the block proposal, but they failed to check that intermediate tree roots, which are included in the proposal and posted to the rollup contract on L1, were also correct. The attack tweaked one of these intermediate roots while proposing a correct world state root, so it went unnoticed by the attestors. 

As mentioned above, even though the block made it through the initial attestation and was posted to L1, the invalid block was caught by the validators, and the entire epoch was never proven as provers refused to generate a proof for the inconsistent state. 

A fix was pushed that resolved this issue and ensured that invalid block proposals would be caught and rejected. A second fix was pushed that ensures inconsistent state is removed from the uncommitted cache of the world state.

What’s Next

Block production is currently running smoothly, and the network health has been restored. 

Operators who had previously upgraded to version 2.0.3 will need to restart their nodes. Any operator who has not upgraded to 2.0.3 should do so immediately. 

Slashing has also been functioning as expected. Below you can see the slashing signals for each round. A single signal can contain votes for multiple validators, but a validator's attester needs to receive 65 votes to be slashed.

Join us this Thursday, September 25, 2025, at 4 PM CET on the Discord Town Hall to hear more about the 2.0.3 upgrade. To stay up to date with the latest updates for network operators, join the Aztec Discord and follow Aztec on X.

The TL;DR:

Payy, a privacy-focused payment network, just rewrote its entire ZK architecture from Halo2 to Noir while keeping its network live, funds safe, and users happy. 

Code that took months to write now takes weeks (with MVPs built in as little as 30 minutes). Payy’s codebase shrank from thousands of lines to 250, and now their entire engineering team can actually work on its privacy infra. 

This is the story of how they transformed their ZK ecosystem from one bottlenecked by a single developer to a system their entire team can modify and maintain.

Starting with Halo2

Eighteen months ago, Payy faced a deceptively simple requirement: build a privacy-preserving payment network that actually works on phones. That requires client-side proving.

"Anyone who tells you they can give you privacy without the proof being on the phone is lying to you," Calum Moore - Payy's Technical Lead - states bluntly.

To make a private, mobile network work, they needed:

• Mobile proof generation with sub-second performance
• Minimal proof sizes for transmission over weak mobile signals
• Low memory footprint for on-device proving
• Ethereum verifier for on-chain settlement

To start, the team evaluated available ZK stacks through their zkbench framework:

STARKs (e.g., RISC Zero): Memory requirements made them a non-starter on mobile. Large proof sizes are unsuitable for mobile data transmission.

Circom with Groth16: Required trusted setup ceremonies for each circuit update. It had “abstracted a bit too early” and, as a result, is not high-level enough to develop comfortably, but not low-level enough for controls and optimizations, said Calum.

Halo2: Selected based on existing production deployments (ZCash, Scroll), small proof sizes, and an existing Ethereum verifier. As Calum admitted with the wisdom of hindsight: “Back a year and a half ago, there weren’t any other real options.”

Bus factor = 1 😳

Halo2 delivered on its promises: Payy successfully launched its network. But cracks started showing almost immediately.

First, they had to write their own chips from scratch. Then came the real fun: if statements.

"With Halo2, I'm building a chip, I'm passing this chip in... It's basically a container chip, so you'd set the value to zero or one depending on which way you want it to go. And, you'd zero out the previous value if you didn't want it to make a difference to the calculation," Calum explained, “when I’m writing in Noir, I just write ‘if’. "

With Halo2, writing an if statement (programming 101) required building custom chip infra. 

Binary decomposition, another fundamental operation for rollups, meant more custom chips. The Halo2 implementation quickly grew to thousands of lines of incomprehensible code.

And only Calum could touch any of it.

The Bottleneck

"It became this black box that no one could touch, no one could reason about, no one could verify," he recalls. "Obviously, we had it audited, and we were confident in that. But any changes could only be done by me, could only be verified by me or an auditor."

In engineering terms, this is called a bus factor of one: if Calum got hit by a bus (or took a vacation to Argentina), Payy's entire proving system would be frozen. "Those circuits are open source," Calum notes wryly, "but who's gonna be able to read the Halo2 circuits? Nobody."

Evaluating Noir: One day, in Argentina…

During a launch event in Argentina, "I was like, oh, I'll check out Noir again. See how it's going," Calum remembers. He'd been tracking Noir's progress for months, occasionally testing it out, waiting for it to be reliable.

"I wrote basically our entire client-side proof in about half an hour in Noir. And it probably took me - I don't know, three weeks to write that proof originally in Halo2."

Calum recreated Payy's client-side proof in Noir in 30 minutes. And when he tested the proving speed, without any optimization, they were seeing 2x speed improvements.

"I kind of internally… didn't want to tell my cofounder Sid that I'd already made my decision to move to Noir," Calum admits. "I hadn't broken it to him yet because it's hard to justify rewriting your proof system when you have a deployed network with a bunch of money already on the network and a bunch of users."

Rebuilding (Ship of Theseus-ing) Payy

Convincing a team to rewrite the core of a live financial network takes some evidence. The technical evaluation of Noir revealed improvements across every metric:

Proof Generation Time: Sub-0.5 second proof generation on iPhones. "We're obsessive about performance," Calum notes (they’re confident they can push it even further).

Code Complexity: Their entire ZK implementation compressed from thousands of lines of Halo2 to just 250 lines of Noir code. "With rollups, the logic isn't complex—it's more about the preciseness of the logic," Calum explains.

Composability: In Halo2, proof aggregation required hardwiring specific verifiers for each proof type. Noir offers a general-purpose verifier that accepts any proof of consistent size.

"We can have 100 different proving systems, which are hyper-efficient for the kind of application that we're doing," Calum explains. "Have them all aggregated by the same aggregation proof, and reason about whatever needs to be."

Migration Time

Initially, the goal was to "completely mirror our Halo2 proofs": no new features. This conservative approach meant they could verify correctness while maintaining a live network.

The migration preserved Payy's production architecture:

• Rust core (According to Calum, "Writing a financial application in JavaScript is borderline irresponsible")
• Three-proof system: client-side proof plus two aggregators  
• Sparse Merkle tree with Poseidon hashing for state management

When things are transparent, they’re secure

"If you have your proofs in Noir, any person who understands even a little bit about logic or computers can go in and say, 'okay, I can kinda see what's happening here'," Calum notes.

The audit process completely transformed. With Halo2: "The auditors that are available to audit Halo2 are few and far between."

With Noir: "You could have an auditor that had no Noir experience do at least a 95% job."

Why? Most audit issues are logic errors, not ZK-specific bugs. When auditors can read your code, they find real problems instead of getting lost in implementation details.

Code Comparison

Halo2: Binary decomposition

• Write a custom chip for binary decomposition
• Implement constraint system manually
• Handle grid placement and cell references
• Manage witness generation separately
• Debug at the circuit level when something goes wrong

Payy’s previous 383 line implementation of binary decomposition can be viewed here (pkg/zk-circuits/src/chips/binary_decomposition.rs).

Payy’s previous binary decomposition implementation

Meanwhile, binary decomposition is handled in Noir with the following single line.

pub fn to_le_bits<let N: u32>(self: Self) -> [u1; N]

(Source)

What's Next

With Noir's composable proof system, Payy can now build specialized provers for different operations, each optimized for its specific task.

"If statements are horrendous in SNARKs because you pay the cost of the if statement regardless of its run," Calum explains. But with Noir's approach, "you can split your application logic into separate proofs, and run whichever proof is for the specific application you're looking for."

Instead of one monolithic proof trying to handle every case, you can have specialized proofs, each perfect for its purpose.

The Bottom Line

"I fell a little bit in love with Halo2," Calum admits, "maybe it's Stockholm syndrome where you're like, you know, it's a love-hate relationship, and it's really hard. But at the same time, when you get a breakthrough with it, you're like, yes, I feel really good because I'm basically writing assembly-level ZK proofs."

“But now? I just write ‘if’.”

Technical Note: While "migrating from Halo2 to Noir" is shorthand that works for this article, technically Halo2 is an integrated proving system where circuits must be written directly in Rust using its constraint APIs, while Noir is a high-level language that compiles to an intermediate representation and can use various proving backends. Payy specifically moved from writing circuits in Halo2's low-level constraint system to writing them in Noir's high-level language, with Barretenberg (UltraHonk) as their proving backend.

Both tools ultimately enable developers to write circuits and generate proofs, but Noir's modular architecture separates circuit logic from the proving system - which is what made Payy's circuits so much more accessible to their entire team, and now allows them to swap out their proving system with minimal effort as proving systems improve.

Payy's code is open source and available for developers looking to learn from their implementation.

Aztec’s Public Testnet launched in May 2025.

Since then, we’ve been obsessively working toward our ultimate goal: launching the first fully decentralized privacy-preserving layer-2 (L2) network on Ethereum. This effort has involved a team of over 70 people, including world-renowned cryptographers and builders, with extensive collaboration from the Aztec community.

To make something private is one thing, but to also make it decentralized is another. Privacy is only half of the story. Every component of the Aztec Network will be decentralized from day one because decentralization is the foundation that allows privacy to be enforced by code, not by trust. This includes sequencers, which order and validate transactions, provers, which create privacy-preserving cryptographic proofs, and settlement on Ethereum, which finalizes transactions on the secure Ethereum mainnet to ensure trust and immutability.

Strong progress is being made by the community toward full decentralization. The Aztec Network now includes nearly 1,000 sequencers in its validator set, with 15,000 nodes spread across more than 50 countries on six continents. With this globally distributed network in place, the Aztec Network is ready for users to stress test and challenge its resilience.

Introducing the Adversarial Testnet

We're now entering a new phase: the Adversarial Testnet. This stage will test the resilience of the Aztec Testnet and its decentralization mechanisms.

The Adversarial Testnet introduces two key features: slashing, which penalizes validators for malicious or negligent behavior in Proof-of-Stake (PoS) networks, and a fully decentralized governance mechanism for protocol upgrades.

This phase will also simulate network attacks to test its ability to recover independently, ensuring it could continue to operate even if the core team and servers disappeared (see more on Vitalik’s “walkaway test” here). It also opens the validator set to more people using ZKPassport, a private identity verification app, to verify their identity online.  

Slashing on the Aztec Network

The Aztec Network testnet is decentralized, run by a permissionless network of sequencers.

The slashing upgrade tests one of the most fundamental mechanisms for removing inactive or malicious sequencers from the validator set, an essential step toward strengthening decentralization.

Similar to Ethereum, on the Aztec Network, any inactive or malicious sequencers will be slashed and removed from the validator set. Sequencers will be able to slash any validator that makes no attestations for an entire epoch or proposes an invalid block.

Three slashes will result in being removed from the validator set. Sequencers may rejoin the validator set at any time after getting slashed; they just need to rejoin the queue.

Decentralized Governance

In addition to testing network resilience when validators go offline and evaluating the slashing mechanisms, the Adversarial Testnet will also assess the robustness of the network’s decentralized governance during protocol upgrades.

Adversarial Testnet introduces changes to Aztec Network’s governance system.

Sequencers now have an even more central role, as they are the sole actors permitted to deposit assets into the Governance contract.

After the upgrade is defined and the proposed contracts are deployed, sequencers will vote on and implement the upgrade independently, without any involvement from Aztec Labs and/or the Aztec Foundation.

Start Your Plan of Attack  

Starting today, you can join the Adversarial Testnet to help battle-test Aztec’s decentralization and security. Anyone can compete in six categories for a chance to win exclusive Aztec swag, be featured on the Aztec X account, and earn a DappNode. The six challenge categories include:

• Homestaker Sentinel: Earn 1 Aztec Dappnode by maximizing attestation and proposal success rates and volumes, and actively participating in governance.

• The Slash Priest: Awarded to the participant who most effectively detects and penalizes misbehaving validators or nodes, helping to maintain network security by identifying and “slashing” bad actors.

• High Attester: Recognizes the participant with the highest accuracy and volume of valid attestations, ensuring reliable and secure consensus during the adversarial testnet.

• Proposer Commander: Awarded to the participant who consistently creates the most successful and timely proposals, driving efficient consensus.

• Meme Lord: Celebrates the creator of the most creative and viral meme that captures the spirit of the adversarial testnet.

• Content Chronicler: Honors the participant who produces the most engaging and insightful content documenting the adversarial testnet experience.

Performance will be tracked using Dashtec, a community-built dashboard that pulls data from publicly available sources. Dashtec displays a weighted score of your validator performance, which may be used to evaluate challenges and award prizes.

The dashboard offers detailed insights into sequencer performance through a stunning UI, allowing users to see exactly who is in the current validator set and providing a block-by-block view of every action taken by sequencers.

To join the validator set and start tracking your performance, click here. Join us on Thursday, July 31, 2025, at 4 pm CET on Discord for a Town Hall to hear more about the challenges and prizes. Who knows, we might even drop some alpha.

To stay up-to-date on all things Noir and Aztec, make sure you’re following along on X.

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Preventing sybil attacks and malicious actors is one of the fundamental challenges of Web3 – it’s why we have proof-of-work and proof-of-stake networks. But Sybil attacks go a step further for many projects, with bots and advanced AI agents flooding Discord servers, sending thousands of transactions that clog networks, and botting your Typeforms. Determining who is a real human online and on-chain is becoming increasingly difficult, and the consequences of this are making it difficult for projects to interact with real users.

When the Aztec Testnet launched last month, we wrote about the challenges of running a proof-of-stake testnet in an environment where bots are everywhere. The Aztec Testnet is a decentralized network, and in order to give good actors a chance, a daily quota was implemented to limit the number of new sequencers that could join the validator set per day to start proposing blocks. Using this system, good actors who were already in the set could vote to kick out bad actors, with a daily limit of 5 new sequencers able to join the set each day. However, the daily quota quickly got bottlenecked, and it became nearly impossible for real humans who are operating nodes in good faith to join the Aztec Testnet.

In this case study, we break down Sybil attacks, explore different ways the ecosystem currently uses to prevent them, and dive into how we’re leveraging ZKPassport to prevent Sybil attacks on the Aztec Testnet.

Preventing Sybil Attacks

With the massive repercussions that stem from privacy leaks (see the recent Coinbase incident), any solution to prevent Sybil attacks and prove humanity must not compromise on user privacy and should be grounded in the principles of privacy by design and data minimization. Additionally, given that decentralization underpins the entire purpose of Web3 (and the Aztec Network), joining the network should remain permissionless.

Our goal was to find a solution that allows users to permissionlessly prove their humanity without compromising their privacy. If such a technology exists (spoiler alert: it does), we believe that this has the potential to solve one of the biggest problems faced by our industry: Sybil attacks. Some of the ways that projects currently try to prevent Sybil attacks or prove [humanity] include:

• “Know Your Customer” (KYC): A process in which users upload a picture or scan of their government ID, which is checked and then retained (indefinitely) by the project, and any “bad actors” are rejected.
  
  • Pros: High likelihood they are human, although AI has begun to introduce a new set of challenges.
  • Cons: User data is retained and viewable by a centralized entity, which could lead to compromised data and privacy leaks, ultimately impacting the security of the individuals. Also, KYC processes in the age of AI means it is easy to fake a passport as only an image is used to verify and not any biometric data held on the passport itself. Existing KYC practices are outdated, not secure and prone to data leaks increasing personal security risk for the users.
• On-chain activity and account linking (i.e, Gitcoin passport)
  
  • Pros: No personal identity data shared (name, location, etc.)
  • Cons: Onchain activity and social accounts are not Sybil-resistant.
• Small payment to participate
  
  • Pros: Impractical/financially consequential for bots to join. Effective for centralized infra providers as it can cover the cost they incur from Sybil attacks.
  • Cons: Requires users to pay out of pocket to test the network, and doesn’t prevent bots from participating, and is ineffective for decentralized infra as it is difficult to spread incurred costs to all affected operators.
• zkEmail
  
  • Pros: The user shares no private information.
  • Cons: Users cannot be blocked by jurisdiction, for example, it would be impossible to carry out sanctions checks, if required.
• ZKPassport, a private identity verification app.
  
  • Pros: User verifies they possess a valid ID without sharing private information. No information is retained therefore no leaks of data can occur impacting the personal security of the user.
  • Cons: Users must have a valid passport or a compatible government ID, in each case, that is not expired.

Both zkEmail and ZKPassport are powered by Noir, the universal language of zk, and are great solutions for preventing Sybil attacks.

With zkEmail, users can do things like prove that they received a confirmation email from a centralized exchange showing that they successfully passed KYC, all without showing any of the email contents or personal information. While this offers a good solution for this use case, we also wanted the functionality of enabling the network to block certain jurisdictions (if needed), without the network knowing where the user is from. This also enables users to directly interface with the network rather than through a third-party email confirmation.

Given this context, ZKPassport was, and is, the perfect fit.

About ZKPassport

For the Aztec Testnet, we’ve integrated ZKPassport to enable node operators to prove they are human and participate in the network. This integration allows the network to dramatically increase the number of sequencers that can be added each day, which is a huge step forward in decentralizing the network with real operators.

ZKPassport allows users to share only the details about themselves that they choose by scanning a passport or government ID. This is achieved using zero-knowledge proofs (ZKPs) that are generated locally on the user’s phone. Implementing client-side zk-proofs in this way enables novel use-cases like age verification, where someone can prove their age without actually sharing how old they are (see the recent report on How to Enable Age Verification on the Internet Today Using Zero-Knowledge Proofs).

As of this week, the ZKPassport app is live and available to download on Google Play and the Apple App Store.

How ZKPassport works

Most countries today issue biometric passports or national IDs containing NFC chips (over 120 countries are currently supported by ZKPassport). These chips contain information on the full name, date of birth, nationality, and even digital photographs of the passport or ID holder. They can also contain biometric data such as fingerprints and iris scans.

By scanning the NFC chip located in their ID document with a smartphone, users generate proof based on a specific request from an app. For example, some apps might require only the user’s age or nationality. In the case of Aztec, no information is needed about the user other than that they do indeed hold a valid passport or ID.

Client-side proving

Once the user installs the ZKPassport app and scans their passport, the proof of identity is generated on the user's smartphone (client-side).

All the private data read from the NFC chip in the passport or ID is processed client-side and never leaves the smartphone (aka: only the user is aware of their data). Only this proof is sent to an app that has requested some information. The app can then verify the validity of the user’s age or nationality, all without actually seeing anything about the user other than what the user has authorized the app to see. In the case of age verification, the user may want to prove that they are over 18, so they’ll create a proof of this on their phone, and the requesting app is able to verify this information without knowing anything else about them.

For the Aztec Testnet, the network only needs to know that the user holds a valid passport, so no information is shared by the user other than “yes, I hold a valid passport or ID.”

Getting started with ZKPassport on Aztec Testnet

This is a nascent and evolving technology, and various phone models, operating systems, and countries are still being optimized for. To ensure this works seamlessly, we’ll be selecting the first cohort of people who have already been running active validators on a rolling basis to help test ZKPassport and provide early feedback.

If someone successfully verifies that they are a valid passport holder, they will be added to a queue to enter the validator set. Once they are in line, they are guaranteed entry. The queue will enable an estimated additional 10% of the current set to be allowed in each day. For example, if 800 sequencers are currently in the set, 80 new sequencers will be allowed to join that day.

This allows existing operators to maintain control of the network in the event that bad actors enter, while dramatically increasing the number of new validators added compared to the current number.

Humanizing Web3  

With ZKPassport now live, the Aztec Testnet is better equipped to distinguish real users from bots, without compromising on privacy or decentralization.

This integration is already enabling more verified human node operators to join the validator set, and the network is ready to welcome more. By leveraging ZKPs and client-side proving, ZKPassport ensures that humanity checks are both secure and permissionless, bringing us closer to a decentralized future that doesn’t rely on trust in centralized authorities.

This is exciting not just for Aztec but for the broader ecosystem. As the network continues to grow and develop, participation must remain open to anyone acting in good faith, regardless of geography or background, while keeping out bots and other malicious actors. ZKPassport makes this possible.

We’re excited to see the community expand, powered by real people helping to build a more private, inclusive, and human Web3.

Stay up-to-date on Noir and Aztec by following Noir and Aztec on X.

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