Aztec Network recently announced launching the first-ever private solution on the Ethereum network. With the development, Aztec Connect went live on the mainnet to facilitate private DeFi on Ethereum.
Using Layer 1 DeFi liquidity and complete privacy, Aztec will allow users to access alternative privacy chains without compromising security. The integration has made Ethereum capable of private decentralized finance without external assistance.
Aztec Connect even reworked zk.money, its DeFi aggregator, to elevate its functionalities. The update is already available to users, allowing them to use dApps like Element, Curve, and Lido. The entire process will be kept 100x cost-efficient and completely private.
Many experts believe Aztec Connect to be the next step of DeFi, a zero-knowledge, decentralized network possessing in-built smart contract privacy. The venture adds privacy to apps with two dynamic developer tools – SDK and Bridge Contracts.
Here is an overview of them both:-
SDK: It is a front-end toolkit that enables seamless and vibrant web interfaces, which one can use to access different Aztec Connect integrations.
Bridge Contracts: It proposes 100 to 200-line interfaces that connect Aztec’s rollup with Ethereum smart contracts.
In layman’s terms, Aztec Connect operates like a VPN, using Aztec’s rollup contracts in the form of a proxy. It allows users to interact with Ethereum solutions without leaving the Aztec ecosystem.
The Layer 1 rollup contract receives encrypted guidance from executing such commands. Afterward, the network batches the transactions to reduce user fees while enabling 100x cost savings on Ethereum.
With the latest integration, Aztec has enabled multiple intriguing possibilities.
- Users can undertake completely secure DeFi actions in swaps, lending, vault entry, and staking.
- Ethereum can reduce its infamous user fees.
- Projects can access on-chain DAO governance, NFT trading, and private treasury management.
Given the scale of modifications that Aztec brings to the Ethereum mainnet, both ventures are expected to gain more prominence in the market.
Source: https://www.cryptonewsz.com/aztec-network-launching-first-ever-defi-solution-for-ethereum/