Privacy blockchain platform Aztec to shut down Aztec Connect

Privacy blockchain platform Aztec has announced that it will be shutting down Aztec Connect, the network’s privacy infrastructure that acts as the encryption layer for Ethereum. The network was launched in July 2022 and has since amassed more than 100,000 users. However, the company has now officially announced that it will be closing down the service.

The closure of Aztec Connect will involve disabling deposits from front-ends like and on March 17. Users will be able to withdraw their funds from Aztec Connect with no fees for one year, but withdrawals will become significantly more burdensome after March 21, 2024, according to a blog post by Aztec. The company has recommended that users withdraw their funds as soon as possible.

From March 2024, Aztec will no longer run a sequencer, meaning the current system will no longer publish rollup blocks processing Aztec Connect transactions. “Contract permissions will be renounced, and all rollup functionality will be ceased,” the announcement reads. However, Aztec has fully open-sourced the entire Aztec Connect protocol, and it encourages the Aztec community to fork, deploy, and operate a new version of the system. “We’d love to see an independently-operated Aztec Connect and are ready to fund it,” Aztec said.

According to the announcement, the shutdown of Aztec Connect marks a milestone in the development of a decentralized general-use encrypted blockchain. Before launching Aztec Connect in July 2022, Aztec first experimented with using a zk-Rollup with Aztec 1, which was “slow, inefficient, costly” and limited in functionality to “basic private transfers.”

Aztec’s focus on privacy has been a significant factor in its popularity among blockchain users. Its privacy infrastructure is designed to help users protect their financial data and transaction history from third-party entities, thereby maintaining their privacy. The company has been developing privacy-oriented solutions to improve the efficiency and security of blockchain-based financial transactions.

The closure of Aztec Connect is a significant move for the blockchain platform, but it remains to be seen how the Aztec community will react to the news. As the company has encouraged the community to fork, deploy, and operate a new version of the system, it is possible that a new, independently-operated version of Aztec Connect may emerge in the future. However, for now, users of the platform will need to withdraw their funds before the closure of the service on March 21, 2024.


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Ethereum Scaling Solution Aztec Raises $17M

Key Takeaways

  • Ethereum scaling and privacy solution Aztec has raised $17 million in a Series A round.
  • Major backers of the round included Paradigm, which recently launched a colossal $2.5 billion crypto fund, as well as Vitalik Buterin.
  • The Aztec team says the funds will be used to foster network decentralization, technological innovation, and grants for its latest product, Aztec Connect.

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Aztec, an Ethereum scaling and privacy solution, has raised $17 million in a Series A funding round led by Venture Capital fund Paradigm. 

Web3 Fund Gets to Work Scaling

Paradigm, which recently announced the largest-ever crypto fund of $2.5 billion, has led a $17 million raise for Aztec. The fundraise was announced today.

Aztec is a zero-knowledge rollup that is built using privacy architecture that can reduce Ethereum fees by up to 100-fold while providing private access.  

In addition to Paradigm, there were several other existing partners that supported the fundraising round, including Ethereal Ventures and angel investors Vitalik Buterin and Aave founder Stani Kulechov. 

On the raise, Paradigm’s Research Partner and Chief Technology Officer Georgios Konstantopoulos remarked that “privacy is a fundamental right” and that “Aztec’s rollup” also allows “access to Ethereum’s DeFi.” However, according to Aztec’s CEO and Co-founder Zac Williamson, “the technology to scale blockchains privately didn’t exist” when Aztec was founded, pointing to the innovation of his team. 

The proceeds from this Series A funding round are slated to be used for several purposes. First, the money will go toward grants for Aztec’s newly-launched private bridge for Ethereum called Aztec Connect. The team wrote that the funds will also be used to support network decentralization and to continue developing the technology (i.e. zero knowledge proving systems). 

Ethereum scaling solutions have been a major topic of discussion recently. Late last month, Vitalik Buterin proposed an Ethereum Improvement Proposal called EIP-4488, which sought to decrease Ethereum Layer 2 gas fees. Not long after that, Buterin published a blog post that discussed the future of rollups, writing that they might require “years of refinement.” Another Ethereum scaling solution, zkSync, raised $50 million just last month.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.

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