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May 22nd, 2024
## min read

Decentralization is not a meme: Part 1

What do we mean by “decentralization”? Why Aztec takes decentralization seriously? In this post, we explore Aztec’s efforts around protocol decentralization: sequencer, prover, and upgrade mechanism.

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Written by
Lisa A.
Edited by

Many thanks to Cooper, Prasad, Rafal, Mahima, and Elias for the review.

Contents

  • What do we mean by “decentralization”?
  • Why Aztec takes decentralization seriously
  • Aztec’s efforts around protocol decentralization: sequencer, prover, and upgrade mechanismsome text
  • Request for proposal (RFP)
  • Sequencer
  • Prover
  • Conclusion

1) What do we mean by “decentralization”?

Decentralization in blockchain is one of the most speculative topics, often thought about as a meme.

Source
Source

The questions around decentralization are:

  • Which components should be decentralized (both at the blockchain and application layers)?
  • To what extent?
  • Is decentralization of a specific part of the network a must-have or just a nice-to-have?
  • Will we die if a specific part of the network is not decentralized?
  • Is it enough to have a decentralization roadmap or should we decentralize for real?

The goal of this article is to shed some light on what we mean by decentralization, why it matters, and how decentralization is defined and provided in the context of the Aztec network.

Before we start figuring out the true meaning of decentralization, we should note that decentralization is not a final goal in itself. Instead, it is a way to provide rollups with a number of desired properties, including:

  • Permissionlessness (censorship resistance as a consequence) – anyone can submit a transaction and the rollup will process it (i.e. the rollup doesn’t have an opinion on which transactions are good and which are bad and can’t censor them).
  • Liveness – chain operates (processes transactions) nonstop irrespective of what is happening.
  • Security – the correctness of state transition (i.e. transactions' correct execution) is guaranteed by something robust and reliable (e.g. zero-knowledge proofs).

In the case of zk-rollups, these properties are tightly connected with “entities” that operate the rollup, including:

  • Sequencer – orders and executes transactions –> impacts permissionlessness and liveness.
  • Prover – generates proof that the transactions were executed correctly –> impacts security and liveness.
  • Governance mechanism (upgrade mechanism) – manages and implements protocol upgrades –> impacts security, liveness, and permissonlessness.

Even though we said at the beginning of the article that decentralization is a speculative topic, it’s not overly speculative. Decentralization is required for permissionlessness, censorship resistance, and liveness, which are required to reach the system’s end goal, credible neutrality (at least to some extent). “Credible neutrality” means the protocol is not “designed to favor specific people or outcomes over others” and is “able to convince a large and diverse group of people that the mechanism at least makes that basic effort to be fair”.

Credible neutrality is a crucial element for rollups as well, which is why we're prioritizing decentralization at Aztec, among other things. Progressive decentralization is not an option; Decentralization from the start is a must-have as the regulatory, political, and legal landscapes are constantly changing.

In the next section, we will dive into the specifics of Aztec’s case, looking at its components and their levels of decentralization.

2) Why Aztec takes decentralization seriously

Aztec network is a privacy-first L2 on Ethereum. Its goal is to allow developers to build dapps that are privacy-preserving and compliant (in any desired jurisdiction!) at the same time.

For Aztec, there are two levels of decentralization: protocol and organizational.

At the protocol level, Aztec network consists of a number of components, such as the P2P transaction pool (i.e. mempool), sequencer, prover, upgrade mechanism, economics, Noir (DSL language), execution layer, cryptography, web SDK, rollup contract, and more.

For each of these, decentralization might have a slightly different meaning. But the root reason why we care about it is to provide safety for the developers and users ecosystem.

  • For the rollup contract and upgrade mechanism, the question is who controls the upgrades and how we can diversify this process in terms of quantity and geography.
    A good mechanism should defend the protocol from forced upgrades (e.g. by the court). It should also mitigate the sanctions risk, isolating this risk at the application level, not the rollup level.
  • For sequencer and prover, we also need quantity and geographical decentralization as well as a multi-client approach where users can choose a vendor from a distributed set that may have various different priorities.
  • For economic decentralization, we need to ensure that “the ongoing balancing of incentives among the stakeholders — developers, contributors, and consumers — will drive further contributions of value to the overall system”. It covers the vesting of power, control, and ownership with system stakeholders in such a way that the value of the ecosystem as a whole accrues to a broader array of participants.
  • For all software components, such as client software, we need to ensure that copies of the software are distributed widely enough within the community to ensure access, even if the original maintainers choose to abandon the projects.

When it comes to long-term economic decentralization, the desired outcome is power decentralization, which in turn can be achieved through geographical decentralization.

In the context of geographical decentralization, we particularly care that:

  • diversification among different jurisdictions mitigates the risk of local regulatory regimes attempting to impose their will.
  • when reasoning about extremes and black swan events, having a global system is attractive from the point of view of safety and availability.
  • intuitively, a system that privileges certain geographies cannot be considered neutral and fair.

For more thoughts on geographical decentralization, check out the articleDecentralized crypto needs you: to be a geographical decentralization maxi” by Phil Daian.

3) Aztec’s efforts around protocol decentralization: sequencer, prover, and upgrade mechanism

The decentralization to-do list is pretty huge. Decentralization mechanism design is a complex process that takes time, which is why Aztec started working on it far in advance and called on the most brilliant minds to collaborate, cooperate, design, and produce the necessary mechanisms that will allow the Aztec network to be credibly neutral from day one.

Request for proposal (RFP)

Since last summer, we’ve announced a number of requests for proposal (RFPs) to invite the power of community and the greatest minds in the industry to find a range of solutions for the Aztec network protocol design:

Everyone was welcome to craft a proposal and post it on the forum. For each of the RFPs, we outlined a number of protocol requirements that will decentralize and diversify each part of Aztec, making it robust and credibly neutral.

For each RFP, we got a number of proposals (all of them are attached in the RFPs’ comments). Proposals were discussed on the forum by the community and analyzed in detail by partners (e.g. Block Science) and the Aztec Labs team.

In this section, we will describe and briefly discuss the chosen proposals.

Sequencer Selection

Some of the desired properties

There are a number of desired properties assigned to the sequencer. These include:

  • Permissionlessness sequencer role – any actor who adheres to the protocol can fill the role of sequencer.
  • Elegant reorg recovery – the protocol has affordance for recovering its state after an Ethereum reorg.
  • Denial of services – an actor cannot prevent other actors from using the system.
  • L2 chain halt – there is a healing mechanism in case of block proposal process failure.
  • Censorship resistance – it’s infeasibly expensive to maintain sufficient control of the sequencer role to discriminate on transactions.

Other factors to be considered are

  • How the protocol handles MEV
  • How costly it is to form a cartel
  • Protocol complexity
  • Coordination overhead – how costly it is to coordinate a new round of sequencers

Sequencer mechanism

The chosen sequencer design is called “Fernet” and was suggested by Santiago Palladino (“Palla”), one of the talented engineers at Aztec Labs. Its core component is randomized sequencer selection. To be eligible for selection, sequencers need to stake assets on L1. After staking, a sequencer needs to wait for an activation period of a number of L1 blocks before they can start proposing new blocks. The waiting period guards the protocol against malicious governance attacks.

Block proposal mechanism

Stage 0: Score calculation

  • In each round (currently expected to be ~12-36ss), staked sequencers calculate their round-based score, derived from a hash over RANDAO and a public key.

Stage 1: Proposal

  • Based on the calculated scores, if a sequencer determines its score for a given round as likely to win, it commits to a block proposal.
  • During the proposal stage, the highest ranking proposers (i.e. sequencers) submit L1 transactions, including a commitment to the Layer-2 transaction ordering in the proposed block, the previous block being built upon, and any additional metadata required by the protocol.

Stage 2: Prover commitment – estimated ~3-5 Ethereum blocks

  • The highest ranking proposers (i.e. sequencers) make an off-chain deal with provers. This might be a vertical integration (i.e. a sequencer runs a prover), business deal with a specific 3rd party prover, or a prover-boost auction between all of the third party proving marketplaces.
    On the sequencers' side, this approach allows them to generate proofs according to their needs. On the network side, it benefits from modularity, enjoying all proving systems innovations.
  • Provers build proofs for blocks with the highest scores.
  • This stage will be explicitly defined in the next section dedicated to the proving mechanism.

Stage 3: Reveal

  • At the end of the proposal phase, the sequencer with the highest ranking block proposal on L1 becomes the leader for this cycle, and reveals the block content, i.e. uploads the block contents to either L1 or a verifiable DA layer.
  • As stages 0 and 1 are effectively multi-leader protocols, there is a very high probability that someone will submit a proposal (though it might not be among the leaders according to the score).
    In the event that no one submits a valid block proposal, we introduce a “backup” mode, which enables a first-come, first-served race to submit the first proof to the L1 smart contracts. There is also a similar backup mode in the event that there is a valid proposal, but no valid prover commitment (deposit) by the end of the prover commitment phase or should the block not get finalized.
  • If the leading sequencer posts invalid data during the reveal phase, the sequencer for the next block will build from the previous one.

Stage 4: Proving – estimated ~40 Ethereum blocks

  • Before the end of this phase, it is expected for the block proof to be published to L1 for verification.
  • Once the proof for the highest ranking block is submitted to L1 and verified, the block becomes final, assuming its parent block in the chain is also final.
  • This would trigger new tokens to be minted, and payouts to the sequencer, prover commitment address, and the address that submitted the proofs.
  • If block N is committed to but doesn't get proven, its prover deposit is slashed.

The cycle for block N+1 can start at the end of the block N reveal phase.

How Fernet meets required properties

How Fernet meets required properties

Property
How Fernet addresses it
Permissionlessness sequencer role
Anyone who locked some funds on L1 can propose a block after a waiting period. 
Elegant reorg recovery
On L2, reorg is not possible as a new block can be proposed strictly after the previous block was finalized. However, L1 reorg might impact L2.
L2 chain halt
Relying on the Ethereum copy of Aztec network state between the last finalized epoch and the current safe block.
Censorship resistance
In order to censor a transaction, it must be the case that an entity can “guarantee” that they are repeatedly selected as sequencer while the transaction to be censored is awaiting processing. The VRF selection process will prevent such a guarantee.
MEV
For the public domain, MEV is extracted by the sequencer responsible for the current slot. In the private domain, there is no direct MEV extraction. However, there might be some probabilistically extracted MEV, though its feasibility will depend on the dapps landscape deployed on the chain.
Protocol complexity: engaged mechanisms can be adjusted over time because of modularity
The Aztec protocol design assumes modularity, allowing it to choose any prover and DA mechanisms and adjust them later if needed. 
Cost for private and public function calls
For public functions, call costs depend directly on the specific executed opcodes (as for any other rollup). For private function calls, there is a fixed cost for every state update and proof verification.

For a detailed analysis of the protocol's ability to satisfy the design requirements, check this report crafted by an independent third party, Block Science.

Prover

Context

In the previous section, we mentioned that at stage 3 proofs are supplied to the blocks. However, we didn’t explicitly define the specific prover mechanism.

To design a prover mechanism, Aztec also initialized an RFP after the sequencer mechanism was chosen to be Fernet (as described in the previous section).

Without going into too much detail, one should note that the Aztec network has two types of proofs: client-side proofs and rollup-side proofs. Client-side proofs are generated for each private function and submitted to the Aztec network by the user. The client-side proving mechanism doesn’t have any decentralization requirements, as all the private data is processed solely on the user’s device, meaning it’s inherently decentralized. Covering client-side proof generation is outside the scope of this piece, but check out one of our previous articles to learn more about it.

The Aztec RFP “Decentralized Prover Coordination” asked for a rollup-side prover mechanism, the goal of which is to generate proofs for blocks.

In particular, it means the sequencer executes every public function and the prover creates a proof of each function’s correct execution. That proof is aggregated into a kernel proof. Each kernel proof is aggregated into another kernel proof and so on (i.e. as a chain of kernel proofs). The final kernel proof is aggregated into a base rollup proof. The base rollup proofs are aggregated into pairs in a tree-like structure. The root of this tree is the final block proof.

Desired properties
There is a row of desired properties assigned to the prover mechanism. Among those:

  • Permissionlesness – anyone can run an Aztec prover.
  • The prover of each block can be recognized to be rewarded or slashed by the protocol.
  • Recovery mechanism in case provers stop supplying proofs.
  • Flexibility for future cryptography improvements.


Prover mechanism

The chosen prover mechanism is called “Sidecar” and was suggested by Cooper Kunz.

  • It is a minimally enshrined commitment and slashing scheme that facilitates the sequencer outsourcing proving rights to anyone, given an out-of-protocol prover marketplace. This allows sequencers to leverage reputation or other off-protocol information to make their choice.
  • In particular, it means anyone can take a prover role. For example, it can be a specialized proving marketplace, or a vertically integrated sequencer’s prover, or an individual independent prover.
  • After the sequencer chooses its prover, there is a Prover Commitment Phase by the end of which any sequencer who believes they have a chance to win block proposal rights must signal via an L1 transaction the prover’s Ethereum address and the prover specifies its deposit.
  • After the prover commits, the block content is revealed by the sequencer. Going with this specific order (i.e. first prover commitment then revealing block content) allows one to mitigate potential MEV-stealing (if sequencers have to publish all data to a DA layer before the commitment) and proof withholding attacks (i.e. putting up a block proposal that seems valid but never revealing the underlying data required to verify it).
  • The prover operates outside of Aztec protocol and the Aztec network. Hence, after the prover commitment stage, the protocol simply waits a predetermined amount of time for the proof submission phase to begin.

How Sidecar meets required properties

How Sidecar meets required properties

Property
How Sidecar addresses it
Permissionlessness
Anyone can run a prover.
Prover recognizability
Prover posts commitment to L1.
Recovery mechanism
Reorgs are not possible within the current design. 
Flexibility
There is no hard commitment to one specific proving system. 

Conclusion

Decentralization is neither a sentiment nor a meme. It’s one of the core milestones on the way to credible neutrality. And credible neutrality is one of the core milestones on the way to a long-lasting, secure, and robust Ethereum ecosystem.

If the network is not credibly neutral, the safety of users’ funds cannot be long-term guaranteed. Furthermore, if the network is not credibly neutral, the developers building on top of the network can’t be sure that the network will be there for them tomorrow, the day after tomorrow, in a year, in ten years, etc. They have to trust the network team that they are good, reliable people, and will continue maintaining the network and will fulfill all their promises. But what if that is not the case? Good intentions of a small number of people are not enough to secure hundreds of dapps, the thousands of developers building them, and the millions of users using them. The network should be designed in a credibly neutral way from the first to the last bit. Without compromises, without speculation, without promises.

That is what we are working on at Aztec Labs: systematically decentralizing all of the network’s components (e.g. sequencer and prover) with the help and support of a wide community (e.g. through RFP and RFC mechanisms) and top-notch partners (e.g. Block Science).

That is why, especially in the early days, Aztec prioritizes safety over other properties (e.g. impossibility of reorg attacks by design and unrolling upgrade mechanism allowing sequencers to have enough time to battle-test the mechanism before any assets come to the network).

Besides technical and economical decentralization, Aztec also considers its legal aspect that comes in the form of a foundation that is a suitable vehicle to promote decentralization.

If you want to contribute to Aztec’s decentralization – fill in the form.

This was the first part of the piece on Aztec’s decentralization. In the second part (coming soon), we will cover the upgrade mechanism.

Sources:

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Aztec Network
Aztec Network
2 Jun
xx min read

Who controls your privacy off-switch?

Privacy has become a baseline requirement for L1s and L2s who care about bringing real-world users onchain. Users don't want their activity broadcast to competitors or the general public, but applications operating at scale also need some form of auditability, whether for regulators, compliance requirements, or tax reporting. Selective disclosure resolves that tension: privacy by default, with the ability to prove specific facts when required. What separates these networks is not whether they offer that switch, but who gets to hold it.

Aztec, Canton, Starknet, Tempo, and zkSync all offer some form of privacy with selective disclosure, but under the hood they make fundamentally different architectural decisions about who can see your data and who can turn your privacy off. Those decisions determine whether your privacy stays under your own control or sits behind a switch that someone else operates.

Three questions reveal where these networks actually diverge:

  1. Who sees your data?
  2. Who can prove the network followed its own rules?
  3. Who controls when something gets disclosed?

The answers determine whether your privacy off-switch is held by a policy, by an operator's good behavior, or by you alone through a cryptographic proof. As you'll see in this post, there are legitimate reasons to use each one with different tradeoffs. Aztec is the only network, however, where that switch stays in the user's hands, answering all three questions without putting a permissioned set of operators or a standing viewing key in control of your privacy. That gives developers the flexibility to build apps that comply with applicable laws while still keeping full privacy under the user's control.

This article will compare the privacy approaches of Aztec, Canton, Starknet, Tempo, and zkSync to give developers insight into the privacy tradeoffs of each network.

TL;DR

Here’s how each network handles the selective disclosure privacy off-switch, and who has control over your privacy: 

  • Aztec: Only you can see your data, client-side proofs settled to Ethereum let anyone verify every transaction without trusting an operator, and the off-switch stays in your hands, allowing you selectively share information.
  • Canton: Participant nodes read your data in plaintext, no outside party can verify the global ledger, and your off-switch sits with those nodes rather than with you, since disclosure depends on them staying honest.
  • Starknet: No operator ever sees your plaintext because proofs are generated client-side, and those proofs verify the rules, but your off-switch is a standing viewing key that a designated auditor can use to decrypt and trace your entire history on request.
  • Tempo: The zone operator sees every transaction in plaintext, mainnet validity proofs let anyone verify the zone ran correctly, and the operator holds the off-switch, so you are private from the public but not from the operator.
  • zkSync: The operator reads every transaction in plaintext while a validity proof on Ethereum proves it cannot forge state, and the operator holds the off-switch over who sees what, giving you privacy from the outside world but not from the operator.

The Comparison In One View

Comparison chart of privacy on Aztec, Canton, Starknet, Tempo, and zkSync

Comparing your privacy off-switch 

Each of these networks offers privacy with selective disclosure, but each rests on a different network design with its own tradeoffs. We have ordered them by who holds your privacy off-switch, starting with designs where a third party controls access to your data and ending with designs where that control stays with you. At the top, the switch sits behind a policy promise and an honest operator, and further down it is replaced by proofs that the user generates and controls.

Canton

Canton keeps data private by controlling viewing permissions for the various actors on its network. A transaction splits into per-participant views, so each party receives only the sub-transactions that name it, and the parts it is not entitled to never reach it. The sequencer and mediator move those views without reading them, which is real privacy against those roles.

However, the data is still read in plaintext by the participant nodes that host the relevant parties, and in the common regulated-asset pattern where the issuer is a signatory on its own token, the issuer's node sees every transfer. The harder gap is verification, because no third party can reconstruct the global ledger, so correctness rests on the confirming nodes staying honest and their keys staying safe. In practice the off-switch sits with those nodes rather than with you, since you cannot see when your data is read and cannot stop it.

Tempo

Tempo is designed for payments and uses validity proofs to verify that each zone is executing correctly, while still giving the zone operator full plaintext visibility into every transaction within that zone. Privacy comes from Tempo Zones, which are parallel execution environments connected to the Tempo mainnet.

By design, the zone operator has visibility into all transactions within the zone, while users see only their own and the public sees only a proof that the zone is valid. Token issuers set compliance controls, allowlists, blocklists, and freezes, enforced across zones. The mainnet checks each zone's validity, so execution is verified, while the operator still reads every transaction in plaintext and holds the off-switch over what is revealed. Your privacy is from the public, not from the operator.

zkSync Prividium

zkSync Prividium adds the verifiability piece that Canton lacks. Every batch produces a validity proof settled to Ethereum, so a compromised operator cannot forge state or mint tokens from nothing without also forging a proof, which it cannot do. The tradeoff is that the operator processes every transaction in plaintext and decides who sees what, which means the off-switch stays with the operator and your privacy is from the outside world rather than from the operator itself.

This tradeoff has legitimate uses in high-trust institutional environments. If Bank of America, JPMorgan, and Wells Fargo are transacting on a shared network, a zone where BofA's infrastructure processes BofA-originated transactions satisfies internal control requirements while still delivering genuine ZK privacy from the other banks and the rest of the world. Where this model breaks down is in lower-trust environments where giving an operator full plaintext access and the switch that comes with it holds back product design possibilities. 

Starknet STRK20

Starknet's STRK20 breaks from relying on an operator for privacy. It shields ERC-20 balances and transfers in a privacy pool, and every private transaction carries a zero-knowledge proof generated client-side, so no operator sees your plaintext in order to build it.

Disclosure is where STRK20 diverges from Aztec. To join the Starknet Privacy Pool, you register an encrypted viewing key onchain, and it sits there for the life of your participation. On a regulatory request, a designated auditing entity can decrypt that key and trace your complete transaction history, forwards and backwards. StarkWare calls this ‘not a backdoor’ but a carefully scoped access mechanism, and the safeguard is a policy promise that the auditor decrypts only when required. The privacy is cryptographic, but the off-switch is a standing key that someone else holds and can flip whether or not you are watching.

Aztec

On Aztec your private state lives as encrypted private data that only you can decrypt. The contract developer can choose what state is public and what is private, and whether your encrypted private data is emitted onchain as a private log or shared off-chain instead.

Your transactions get proven client-side on your own device, so no sequencer or operator sees your unencrypted private data. Those proofs settle to Ethereum, which gives the same integrity anchor marketed by Prividium, with every transaction verified and no forged state, but without a single operator who reads your data. The base protocol decentralizes sequencing, proving, and governance, so there is no operator to choose and trust in the first place.

Disclosure is your choice too: you decide who learns your private data, and whether they learn it in encrypted or decrypted form. To grant discovery without readability, you share an app-specific tagging secret that lets an auditor find your data in encrypted form without being able to decrypt and read it. This is enough to prove things calculated from that data, such as a tax basis or a profit and loss figure. Granting permission to actually read the data works differently. There's no per-contract read key you can hand out, because decryption uses your master viewing key, which would unlock all your data across every contract. So instead of sharing a key, you share the data itself, plus a proof that your plaintext is what encrypts to the on-chain ciphertext.

Aztec has true selective disclosure in that you can selectively share it, and nothing else you don’t need to. This is app specific, meaning that private data discoverability access on one app does not grant access on another. Most importantly, the off-switch stays in your hands, and you never need to trust the network to handle access to any of your private data and activity.

This is not just conceptual: here is a working proof-of-concept of this model on Aztec. PrivPNL takes you from private DEX trades through a tagging-key disclosure to a browser-generated ZK proof of your PnL. The auditor verifies a proof while the prover only has to reveal the amount they owe, and your portfolio stays private.

Users need to hold their own off-switch, not a promise to look away

Canton keeps the switch with the participant nodes that read your data in plaintext, so disclosure rests on those nodes staying honest rather than on anything you control. Tempo similarly gives the off-switch to a zone-based node operator, but allows you to verify the correctness of transactions using validity proofs. Prividium hardens that promise with a proof settled to Ethereum, a real improvement, but the operator still reads every transaction and still decides who sees what. This can work well for large institutions, but small to medium sized enterprises are left with the same privacy as their current banks unless they run their own Prividium nodes. STRK20 moves the switch into a standing viewing key and asks you to trust that a designated auditor reaches for it only when needed. In each of these models the real question is not whether your privacy can be switched off, but who gets to do the switching, and whether you would even know it happened.

Aztec takes the operator and the standing key out of the question entirely. You keep the data, you generate the proof, and you disclose the result, one fact at a time and only when you choose to. The off-switch never leaves your hands, and no operator, auditor, or node can reach it on your behalf. This is one of the benefits of a network that offers fully programmable, privacy-preserving smart contracts that put you in control. 

Selective disclosure is how privacy survives contact with a regulator, and the model you pick decides who can open your history when you are not looking. On Aztec, that answer is no one but you.

Let's Build

Dive into the technical details: Try a live demo of selective disclosure on Aztec and read the technical article on how it was built. 

Integrate with Aztec: Reach out if you are interested in integrating privacy into your project.

Aztec Network
Aztec Network
26 May
xx min read

The Aztec Stack

Aztec is built on one idea: smart contracts on Ethereum where developers choose what is public and what is private. That doesn't just mean shielded transactions. It means who acts (identity), what they transact (state), and how they execute (computation) can all be private. Aztec makes end-to-end privacy possible; even the contracts themselves can be private.

But privacy also has to be practical. Aztec integrates private and public execution in the same contract, so apps can seamlessly weave together private and public state. Every account is a smart contract, letting users grant granular, revocable access for selective disclosure, which is useful for compliance, tax reporting, or agent permissions.

Finally, Aztec is a decentralized L2, with 3,500+ sequencers participating in the network today. That permissionlessness is what makes Aztec a credible foundation for a global privacy layer.

In this article we’re going to explore the Aztec stack and how we make programmable privacy a reality. We’ll answer questions like ‘what can you do on Aztec?’, ‘how does it all work?’, and ‘what are the core layers of the system that makes it all possible?’

TL;DR

The four layers of the Aztec stack, all live today on the Alpha network

  1. Noir: a programming language for writing private programs with simple, familiar syntax. 
  1. Aztec smart contracts: written in Noir using the Aztec.nr framework, allowing you to easily write smart contracts with both public and private state. 
  1. Aztec Network: a fully decentralized, privacy-preserving Ethereum L2 for building useful applications. Private state uses a UTXO model, public state uses an account-based model like Ethereum. 
  1. Ethereum: L2 txn rollup proofs are stored on Ethereum, inheriting strong economic security. 

Layer 1: Noir, the Universal Language of ZK 

Aztec smart contracts are written in Noir, a programming language with Rust-like syntax optimized for writing private programs. Noir is an open-source project developed by Aztec and is now the industry-leading language for writing private apps using zero-knowledge proofs. Let’s dive into what Noir is, and why we use it as the building block for writing smart contracts. 

Writing zk programs is extremely difficult without a background in cryptography. When developing Noir, our first goal was to create a highly optimized and easy-to-write zk Domain Specific Language (zkDSL) where developers don’t need to know any of the underlying mathematics. As a result, Noir handles all the cryptographic complexities, and will automatically convert your code into fancy zk circuits. 

Noir under the hood
Noir under the hood

Noir compiles down to the Abstract Circuit Intermediate Representation (ACIR), an adaptable intermediary language that makes it easy to plug in a variety of popular proving backends. These proving backends, such as Aztec’s Barretenberg proving system, take the compiled zero-knowledge circuits and generate proofs attesting to the validity of the program’s execution, all without revealing any private inputs. From authorization systems that keep a password on the user's device, to complex onchain state channels with recursive proofs to verify offchain state; Noir and a proving backend handle everything from compilation to cryptography for you. 

In addition to simplifying the developer experience, we also wanted to make it intuitive to specify which elements you want to keep private and which you want to make public. With Noir, privacy is baked in as a default, so all variables and functions are automatically kept completely private, and executed on the user’s device. 

If you want to make any part of your code public, you can do so by simply adding a pub attribute. 

Using public and private inputs together
Using public and private inputs together

Noir on its own is great for writing programs that need to execute stateless functions, such as proving that you reside in a specific country based on passport data, or that you hold a certain number of tokens without revealing how many. Projects are already starting to build with Noir outside of Aztec on Base, Scroll, Starknet, and other chains. However, if you are looking to write privacy-preserving apps that store private state data onchain, it’s helpful to utilize a smart contract library that deliberately handles those complexities for you. That’s exactly what we’ve built at Aztec and what we’ll explore in the next section. 

Layer 2: Smart Contracts 

Aztec smart contracts leverage Noir to create apps with onchain private and public state. This section covers how smart contracts work on Aztec and how you deploy and interact with your contracts. 

An Aztec smart contract is a set of public and private functions written in Noir, deployed on the Aztec Network. They are written using the Aztec.nr framework which handles all the cryptography under the hood for managing private and public state and interacting with other contracts on the network. 

To build useful applications, developers need to be able to incorporate both private and public components into their contracts. For example, an onchain voting contract might want to keep the information of the voter private and prevent someone from voting twice, but publicly display how many votes have been cast, and the outcome. 

Because contracts are written in Noir, this functionality is as easy as adding a ‘private’ annotation above your function. The following function will be executed privately on the user device, allowing a user to cast a vote without revealing their address: 

The output of this private, local execution will be sent to the network, where the correctness of execution is verified and public function calls are executed. The following function is designed to be executed publicly, adding a vote to the total tally without revealing where it came from. 

To seamlessly weave together private and public components that can easily interact with onchain state, Aztec smart contracts utilize the Aztec.nr framework to execute private functions on the user’s device and bundle the proofs for these transactions together with the public functions that will be executed by the Aztec Virtual Machine (AVM). 

This framework adds the functionality needed to build onchain, privacy-preserving apps, including defining contracts, accessing private or public context, and interacting with the Aztec Network. Similar to how a vanilla Noir program would compile down into zk circuits, Aztec smart contracts are compiled into zk circuits for private functions or AVM bytecode for public functions, and stored in the Aztec contract tree. 

Aztec accounts are also written as smart contracts, implementing what is known as account abstraction. Account abstraction allows application developers to create programmable accounts to dramatically improve user experience, including social recovery, sponsored transactions, and multi-factor authentication. It also makes compliance practical, allowing for granular access controls on accounts. 

Layer 3: The Aztec Network

The Aztec Network is the only decentralized L2 on Ethereum. There are currently over 3,500 sequencers running the alpha network. View the live block explorer for the alpha network. 

In order for a network to fully protect users and their data, it must guarantee three levels of privacy: 

  • Private data: input and output values are hidden
  • Private identity: addresses are hidden 
  • Private compute: contract functions are hidden 

When you write  Aztec smart contracts, everything listed  above is taken care of for you. As discussed in the previous two sections, you can easily opt into privacy protections at a granular level by weaving together public and private functions. 

To understand how all of these components fit together, let’s examine how a transaction is executed on the Aztec Network. 

When a user interacts with your application, private functions are executed client-side on the user’s device: a phone, a personal computer, etc. This happens in a private execution environment (PXE) that is able to create highly-efficient zk proofs even on browsers and mobile devices. Any private state updates are added to the state of the network in an append-only database (UTXO tree). Because the proof is generated client-side, no information can be leaked about the inputs, outputs, accounts, or even the functions that were executed.

On the other hand, public transactions are bundled together with the private client-side proofs and sent off to the Aztec Network, powered by a decentralized network of independent community-run sequencers. Sequencers check the validity of private execution proofs, execute any public functions and update the public state, propose blocks, and publish state updates (“diffs”) to Ethereum L1. Sequencers also coordinate with a decentralized network of provers who compute the final proof for every Aztec “epoch” - defined as a contiguous sequence of 32 L2 blocks - and publish it to Ethereum. Any public functions executed by sequencers update an account-based database similar to Ethereum. 

Sequencer and prover roles are fully permissionless. Anyone can spin up the required hardware and join the sequencer set or run provers and start bidding to produce proofs of Aztec epochs. 

Conclusion

Aztec delivers on a simple but powerful idea: smart contracts on Ethereum where you choose what's public and what's private across identity, data, and compute. The four layers we've walked through are what make that possible.

Noir gives developers a Rust-like language for writing zero-knowledge programs without a cryptography background, with privacy as the default. Aztec smart contracts build on Noir through the Aztec.nr framework, letting you weave private and public functions into a single contract and use account abstraction to unlock granular access controls for compliance, tax reporting, and selective disclosure. The Aztec Network is the only decentralized L2 on Ethereum, with over 3,500 sequencers powering end-to-end programmable privacy across data, identity, and compute. And it all settles to Ethereum, inheriting L1's economic security.

The result is the first practical platform for privacy on Ethereum, and a credible candidate to become the global settlement layer of the future.

Now it's your turn to build. Head to docs.aztec.network to ship your first privacy-preserving app.

Follow Aztec on X for updates on the current state of the network. 

Aztec Network
Aztec Network
19 May
xx min read

10 Privacy Features Ethereum Devs Want. All of them live on Aztec.

Last week, PSE published an insightful and comprehensive user-research piece on private transfers on Ethereum. They interviewed 38 teams in the space and asked what's broken, what's missing, what builders wish they had. The list reads like a wishlist of features every privacy app on L1 is currently trying to engineer towards. It's the kind of rigorous, builder-grounded research the privacy ecosystem has needed.

We read the list. It's the list we've been building against for years.

Aztec solves all of these problems. Every requested feature already lives on Aztec. The proving system, the private contract language, the decentralized network, the privacy wallet architecture, the key model, the snark-friendliness: all of Aztec was built against this list before it was a list.

What follows is a walkthrough. For each of PSE's top technical findings, here's the feature builders are asking for, and how it works on Aztec today.

TL;DR

  1. Slow client-side ZK proving: Aztec's client-side proving system (Chonk) is optimized specifically for fast recursive proving on resource-constrained devices such as phones (and even in the browser).
  2. Expensive L1 proof verification: Aztec amortises the gas costs of L1 verification across thousands of users per rollup. Instead of “millions of gas per user” it costs hundreds of gas; that’s pennies per user transaction.
  3. DeFi composability with private state: Private token contracts on Aztec can be unshielded to easily interact with Ethereum DeFi contracts, and the resulting state can be shielded, without leaking who did the interaction. Or you can just design composable private DeFi contracts within Aztec.  
  4. Deposit/withdrawal leakage: Aztec isn’t a basic shielded pool, so users don’t need to keep withdrawing to do useful things. Users can use their funds within private smart contracts. Privacy leakage doesn’t happen if all transaction activity stays in private-land.
  5. No native wallet support: Of course Ethereum wallets don’t natively support privacy; Ethereum doesn’t have native privacy. There are a huge number of new concepts that are needed to design a private smart contract wallet. Aztec wallets are built from the ground up to enable a rich private onchain experience. 
  6. Reliance on external networks, TEEs, FHE, and relayers: The private and public execution environments of Aztec aren't reliant on external networks. Aztec is a fully decentralised L2, without these centralisation concerns. 
  7. Keccak is inefficient inside ZK circuits: The entire Aztec protocol uses Poseidon2, so complex private txs are rapid to prove on a phone. 
  8. Slow private state sync: Brute-force scanning of the entire chain’s history is not necessary. Aztec's tagging scheme lets recipients pinpoint their notes in seconds from a shared secret.
  9. Fragmented privacy sets: All private smart contracts on Aztec share one global note tree and one global nullifier tree. All network activity contributes to and draws from a single privacy set.
  10. No tooling or standards for private contracts: Aztec has a huge suite of tools to ship private contracts. Noir, a smart contract framework, a private state manager, a keystore, the PXE for executing contracts locally, a JS SDK, testing frameworks, local test networks, a CLI, and a slew of advanced private contract standards.

1. ZK proof generation time on user devices

Ethereum Problem: Proof generation is too slow on user devices, especially mobile. Elliptic-curve pairing operations are a specific bottleneck. Server-side proving is a censorship and privacy leak vector. Sub-second proving was the stated threshold.

Aztec solution: Proving on Aztec runs locally in the PXE (Private eXecution Environment, pronounced "pixie"), so no data ever leaves the user's device. Chonk, our client-side zk proving system, is ruthlessly optimised for fast recursive proving on low-memory devices like phones, native and in-browser. Years of optimization have already gone in, and we're still finding more. It’s best in class and we haven’t even merged-in GPU acceleration yet!

The slow pairing checks that PSE's interviewees called out as a bottleneck aren’t a problem with Aztec; pairings are simply batched together and deferred away from the user's device, handled by the more powerful network instead, without leaking any information. With such a powerful local prover, there’s little need to outsource proving to an untrusted party.

2. ZK proof verification gas on L1

Ethereum Problem: Verifying a ZK proof on Ethereum is prohibitively expensive. A Groth16 proof for a private transfer costs several hundred thousand L1 gas. A Halo2 (KZG Plonk) proof can cost approximately one million gas

Aztec solution: Aztec amortises L1 verification gas across all transactions in the rollup. At current network throughput, that cost is split across roughly 2,000 users per proof. Later this year, it’s slated to be split across ~20,000. Rollup costs are also partially subsidised by Aztec block rewards.

Net result: hundreds of L1 gas per user instead of millions. Plus cheap L2 gas. The user pays pennies for an Aztec transaction.

3. DeFi composability with private state

Ethereum Problem: Wrapping and unwrapping tokens leaks privacy and breaks composability. Smart contracts can't easily interact with encrypted balances. Private state is isolated; contract state is normally shared.

Aztec solution: Private state is not isolated on Aztec. The private state of one contract can be composed with that of another. This can unlock new privacy-preserving DeFi patterns directly on Aztec.

A single private transaction can call a stack of private functions across multiple contracts, with private inputs, private state transitions, and privacy over which functions were even executed and how many. Observers see that a transaction landed. They do not see what happened inside it. Stew on that for a second: a call stack of nested private functions across contracts written by different developers, each causing state transitions, all completely private.

Aztec also runs public functions, similar to Ethereum, inside the same smart contract, so you can build existing DeFi primitives on Aztec

For Ethereum DeFi specifically, Aztec has a tidy L1-to-L2 messaging layer. Private balances can be unshielded to interact with L1 protocols and shielded back, without leaking who did the interaction and without leaky public gas payments. And for private DeFi primitives that need genuinely shared private state (state nobody knows the value of, but which anyone can mutate), people have built Aztec contracts that compose conventional Aztec private state with co-snark or FHE sidecars.

Private and public state are peers inside a single Aztec smart contract. Builders mix and match.

4. Deposit/withdrawal privacy leakage

Ethereum Problem: Entry and exit points are the dominant privacy leak, not the protocol itself. Depositing and quickly withdrawing makes identity analysis trivial.

Aztec solution: The main fix is to stop crossing the boundary so often. (Or even if you do cross the boundary, Aztec has leakage protections).

Imagine if thousands of private smart contracts lived on the same network and could call each other without leaking which contracts were called, which arguments were passed, or what was returned. Imagine they all shared one global note tree and one global nullifier tree. That's Aztec. Once funds are inside, users don't need to keep crossing the private/public boundary to do useful things: Aztec is its own rich environment for composable, private execution of smart contracts.

Even when a private function does need to call a public function – be it an L1 DeFi contract, or a native public function within Aztec – the developer controls the information they reveal; not the protocol. The call can even be "incognito" to hide msg_sender. A single environment for many private apps to thrive also means re-usable tooling for builders.

5. Lack of native wallet support

Ethereum Problem: Privacy features (per-dapp addresses, private transfers) aren't natively integrated into major wallets. Reliance on dapp-specific UIs damages UX.

Aztec solution: Ethereum wallets weren't built for any of this, and they don't need to be: the chain underneath them has no private state to protect. Aztec wallets are an entirely new category of software.

Aztec wallets are able to manage all these new privacy-centric concepts:

  • Authorize your transactions however you want, without revealing your identity to the world. Native account abstraction lets you choose any auth scheme you like, and that choice doesn't expose who you are.
  • Hold multiple specialized privacy keys. Distinct nullifier, viewing, and efficient message-signing keys.
  • Keep your full private state on your own device. An encrypted local database holds your notes and nullifiers (siloed by private contract address), along with private data, private messages, shared secrets, and private contract bytecode.
  • Fine-grained contract access control for your private data.. Access permissions for contracts to read your private data are granular and revocable, rather than all-or-nothing.
  • Run private contracts without cross-contract interference. Built-in protections can stop malicious private contracts from reading or manipulating the private state of other contracts.
  • Establish shared secrets with your counterparties. Wallets can support both on-chain and off-chain methods for setting these up.
  • Catch privacy leaks before you sign. Pre-flight transaction privacy analysis warns when your data might be leaked via public args, msg_sender, fee payment, or even through the shape of the tx.
  • Make your tx look like every other tx on the network. Random padding is added to notes, nullifiers, and logs, and gas settings, anchor blocks, and inclusion deadlines are randomized so every tx blends in with the crowd.
  • Submit transactions privately to the network. Txns can be submitted to the network through a private submission path.
  • Pay fees through generic private fee paymasters. This gives users convenience and enables experimentation over the best private token contract designs for different use cases.
  • Use your wallet to gatekeep which frontends can access which private data . Apps shouldn’t have unfettered access to everything; a wallet needs to protect users’ private data..
  • Get post-quantum hygiene warnings. Wallets are able to flag risky patterns around address reuse and ephemeral-key broadcasts.

Aztec wallets are in active development, and this is an area where we expect many teams to build different wallets that are customized to various user needs. An early wallet is already baked into the protocol for developers to start using today. 

6. Reliance on relayers, FHE coprocessors, and TEEs

Ethereum Problem: Encrypted tokens and many privacy protocols depend on external networks for encryption, decryption, or relaying. Threshold-decryption committees and TEE hardware vendors are added trust assumptions on top of the chain itself.

Aztec solution: Aztec's private and public execution environments are not reliant on external networks. Aztec is its own decentralised network: ~4,000 validators stake on it, block proposers are randomly selected, a random committee attests, and a decentralised set of provers proves the rollup's execution. Validity is ultimately backed by cryptographic proofs settled on Ethereum.

External networks (co-snark networks, TEEs, MPC or FHE sidecars) become an opt-in choice for the specific case of private shared state. The trust tradeoffs there are something the contract developer signs up for explicitly, not a tax every user pays on every transaction by default.

7. Hash function inefficiency inside ZK circuits

Ethereum Problem: Keccak is inefficient to prove inside ZK circuits. There is no native support for a ZK-friendly hash like Poseidon.

Aztec solution: Poseidon2 is enshrined across the entire Aztec protocol, for rapid proving of every tx. Every Aztec state tree, the proving system, the innards of the protocol; everywhere. Reading and writing state inside a circuit is as cheap as it gets.

Keccak, SHA, and Blake hashes are still available through optimised Noir libraries when contracts need them for L1 interoperability. The default is ZK-friendly; the L1-friendly hashes are there when you reach for them.

8. Private state synchronisation

Ethereum Problem: Syncing private state (scanning for incoming notes and events) is a client-side bottleneck. Users wait for scans to complete before seeing their balance. Tachyon-style oblivious sync was cited as a path forward.

Aztec solution: Brute-force syncing of private state is rarely needed. Most real-world use cases involve a sender and recipient who can establish a shared secret offchain first.

From that shared secret, both parties can derive a sequence of random-looking “tags”. Each encrypted note log is prepended with the next tag in the sequence. The recipient already knows the next tag, so they know exactly what to query. Note discovery happens in seconds, not minutes. The scheme slots cleanly into PIR or mixnet approaches for extra privacy on the query itself, and smart contracts that don't trust senders to use the correct tag can just constrain it inside the circuit.

That’s not to say that Aztec requires interactivity between all senders and recipients. For genuinely non-interactive use cases (recipient can't talk to the sender before the transfer), Aztec enables devs to customize both their log emission and their note-discovery logic however they like. (Aztec also has ways to speed up the brute-force scanning approach from "scan the whole chain" to "scan a tiny subset of non-interactive handshake txs"

9. Fragmented privacy sets

Ethereum Problem: Shielded pools are fragmented across dapps and chains, reducing the effective privacy set for all users. Each new privacy protocol must bootstrap its own.

Aztec solution: There is one global note tree and one global nullifier tree on Aztec, shared by every smart contract on the network. Every private app contributes to and draws from the same privacy set. No per-app bootstrap. No walled gardens.

Private payments, private swaps, lending, payroll, treasury, identity attestations: all of them land in the same global commitment set, by construction.

10. Tooling and standards for private contracts

Ethereum Problem: Ethereum developer tooling lacks support for private transfers and private state. Standards for private tokens, compliance, and wallet interactions are missing. Many privacy teams are small, with short runway and expensive audits.

Aztec solution: Aztec ships the full toolchain for private contracts: Noir for writing private logic, the Aztec smart contract framework with macros that hide the protocol mess so devs can focus on app logic, the PXE for keys / state / syncing / proof generation, a JS SDK, a local node for testing, a CLI, and a real, live, decentralised L2.

The mental overhead of building a privacy protocol on Aztec collapses to "just write the app logic." Here is an example of a complete private transfer function on Aztec:

#[authorize_once("from", "authwit_nonce")]
#[external("private")]

fn transfer_in_private(from: AztecAddress, to: AztecAddress, amount: u128, authwit_nonce: Field) {
    self.storage.balances.at(from).sub(amount).deliver(MessageDelivery.ONCHAIN_CONSTRAINED);
    self.storage.balances.at(to).add(amount).deliver(MessageDelivery.ONCHAIN_CONSTRAINED);
}

Look at how simple that is.

A two-line function body.

Two lines.

Aztec takes care of the rest.

Behind those #[...] macros, the framework handles: caller authorisation, note syncing, fetching notes from the user's private db, Merkle membership proofs against the global note tree, safe nullifier creation (without leaking master secrets to the circuit), randomness for new notes, encrypted ciphertext generation, log tagging for fast recipient discovery, and public-input population. The PXE handles key management, private state, and proof generation. The smart contract itself contains its own message-processing logic for log discovery, decryption, and storage on the recipient side.

If you want whitelists, blacklists, association sets, custom tx authorisation, viewing-key hierarchies, temporary view access, selective disclosure to specific counterparties, just import a Noir library. Want something more adventurous than private payments? Same toolchain. 

What this adds up to

PSE's findings are not ten unrelated bugs. They're the same problem refracted ten ways: privacy retrofitted onto a chain that was not designed for it yields bad tradeoffs. 

Aztec was designed against this list before it was a list. One global note tree and one global nullifier tree. Private and public state inside the same contract. Compose calls between private contracts without leaking anything. Fast client-side proving on phones via Chonk. Snark-friendliness everywhere. Rollup-amortised L1 gas costs, fractions of a cent per user. Native account abstraction with private fee paymasters. No painfully slow private state syncing: a tagging-based note discovery scheme that runs in seconds. An entirely new category of wallet that treats privacy as a first-class concern. Simple, high-level smart contract syntax that collapses a basic private token transfer function into two lines.

There were 10 privacy features Ethereum devs wanted, all of them live on Aztec. The infrastructure is in place. Build the thing.

Go to our docs to start building

Aztec is the blockchain that solved the privacy problem. Start at docs.aztec.network or read the architecture deep-dive on The Best of Both Worlds: How Aztec Blends Private and Public State.

Aztec Network
Aztec Network
31 Mar
xx min read

Announcing the Alpha Network

Alpha is live: a fully feature-complete, privacy-first network. The infrastructure is in place, privacy is native to the protocol, and developers can now build truly private applications. 

Nine years ago, we set out to redesign blockchain for privacy. The goal: create a system institutions can adopt while giving users true control of their digital lives. Privacy band-aids are coming to Ethereum (someday), but it’s clear we need privacy now, and there’s an arms race underway to build it. Privacy is complex, it’s not a feature you can bolt-on as an afterthought. It demands a ground-up approach, deep tech stack integration, and complete decentralization.

In November 2025, the Aztec Ignition Chain went live as the first decentralized L2 on Ethereum, it’s the coordination layer that the execution layer sits on top of. The network is not operated by the Aztec Labs or the Aztec Foundation, it’s run by the community, making it the true backbone of Aztec. 

With the infrastructure in place and a unanimous community vote, the network enters Alpha. 

What is the Alpha Network?

Alpha is the first Layer 2 with a full execution environment for private smart contracts. All accounts, transactions, and the execution itself can be completely private. Developers can now choose what they want public and what they want to keep private while building with the three privacy pillars we have in place across data, identity, and compute.

These privacy pillars, which can be used individually or combined, break down into three core layers: 

  1. Data: The data you hold or send remains private, enabling use cases such as private transactions, RWAs, payments and stablecoins.
  2. Identity: Your identity remains private, enabling accounts that privately connect real world identities onchain, institutional compliance, or financial reporting where users selectively disclose information.
  3. Compute: The actions you take remain private, enabling applications in private finance, gaming, and beyond.

The Key Components  

Alpha is feature complete–meaning this is the only full-stack solution for adding privacy to your business or application. You build, and Aztec handles the cryptography under the hood. 

It’s Composable. Private-preserving contracts are not isolated; they can talk to each other and seamlessly blend both private and public state across contracts. Privacy can be preserved across contract calls for full callstack privacy. 

No backdoor access. Aztec is the only decentralized L2, and is launching as a fully decentralized rollup with a Layer 1 escape hatch.

It’s Compliant. Companies are missing out on the benefits of blockchains because transparent chains expose user data, while private networks protect it, but still offer fully customizable controls. Now they can build compliant apps that move value around the world instantly.

How Apps Work on Alpha 

  1. Write in Noir, an open-source Rust-like programming language for writing smart contracts. Build contracts with Aztec.nr and mark functions private or public.
  1. Prove on a device. Users execute private logic locally and a ZK proof is generated.
  1. Submit to Aztec. The proof goes to sequencers who validate without seeing the data. Any public aspects are then executed.
  1. Settle on Ethereum. Proofs of transactions on Aztec are settled to Ethereum L1.

Developers can explore our privacy primitives across data, identity, and compute and start building with them using the documentation here. Note that this is an early version of the network with known vulnerabilities, see this post for details. While this is the first iteration of the network, there will be several upgrades that secure and harden the network on our path to Beta. If you’d like to learn more about how you can integrate privacy into your project, reach out here

To hear directly from our Cofounders, join our live from Cannes Q&A on Tuesday, March 31st at 9:30 am ET. Follow us on X to get the latest updates from the Aztec Network.