What is Aztec (AZTEC)?

Deep Dive

1. Purpose & Value Proposition

Aztec Network addresses a core limitation of Ethereum: the lack of default transaction privacy. While Ethereum is transparent, Aztec provides a "privacy-by-default" execution layer. This enables use cases like confidential DeFi, private voting, and selective identity disclosure, appealing to users and institutions that require financial confidentiality without sacrificing the security of the Ethereum base layer.

2. Technology & Architecture

Aztec operates as a zkRollup, a type of Layer 2 that batches transactions and submits a single cryptographic proof (a zkSNARK) to Ethereum for verification. This ensures scalability and data integrity. Its key innovation is the Noir programming language, which simplifies writing zero-knowledge smart contracts. The architecture follows a "private execution, public verification" model—users generate proofs locally, and only the proof's validity is checked on-chain, keeping transaction details hidden.

3. Tokenomics & Governance

The AZTEC token is an ERC-20 on Ethereum L1 with a genesis supply of 10.35 billion. Its primary utilities are network security, governance, and fees. Operators must stake a minimum of 200,000 AZTEC to run a sequencer, which proposes and validates blocks, earning token emissions as rewards. Governance is decentralized, where staked token holders vote on protocol upgrades. The token may also be used to pay for gas fees on the Aztec network.

Conclusion

Aztec is fundamentally a privacy infrastructure layer for Ethereum, combining zero-knowledge cryptography with a dedicated token to secure and govern a network where confidential transactions are the standard. As the ecosystem evolves, will its focus on programmable privacy drive the next wave of institutional and consumer adoption on Ethereum?