The Aztec privacy network has officially launched on the Ethereum blockchain on Feb. 1. Using Zcash-based technology, it introduces confidential tokens where all amounts are cryptographically hidden.

The network is currently in limited deployment as it just supports zkDai, a private version of Maker's stablecoin. Other zero knowledge tokens are set to be released in the coming weeks, while full access to custom token creation will be granted in two months, the company says.

The Aztec protocol, just like Zcash (ZEC), uses Zk-SNARKs to validate encrypted transactions. When generating a transfer, a proof of definiteness is generated equally the amount gets encrypted.

The arrangement hinges on Aztec's Cryptography Engine smart contract, which tin can exist used to validate the transactions. The contract is based on a arrangement of "notes," which are generally used in a Bitcoin-like structure of inputs and outputs. Dissimilar Zcash, however, Aztec currently does non hide the coin's sender and recipient.

Like Zcash, Aztec needed to behave a trusted setup ceremony. This is a key requirement for all zk-SNARK implementations, as information technology generates a set of common parameters to ensure efficient computation.

Hereafter developments would make smart contracts private

Aztec's goal is to deliver its "Triptych of privacy," which would completely hide a item portion of the Ethereum blockchain. The next step is to hide senders and recipients, while the concluding achievement is making smart contracts completely private.

Aztec's CEO Thomas Walton-Pocock revealed to Cointelegraph that this may occur as early every bit this year:

"Our priority is to deploy PLONK to ACE in 2022. PLONK is the superfast Universal SNARK developed by AZTEC CTO Zac Williamson and AZTEC Chief Scientist Ariel Gabizon, which will somewhen let private smart contracts to execute with just one trusted setup."