In support of the blockchain startup, AZTEC, ConsenSys Labs conducted a financing round of $ 2.1 million. AZTEC is a blockchain startup that aims to make Ethereum transactions private so that banks and other financial institutions can use blockchain efficiently. The announcement was made on Thursday and stated that the other participants in the investment round are Samos Investments, Entrepreneurs First, Jeffrey Tarrant and Charlie Songhurst.
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Tom Pocock, the well-known mathematician was the creator of AZTEC. Zachary Williamson, a nuclear physicist, uses zk-SNARKs, a zero-knowledge test fork similar to the one used for zcash, to improve privacy on the shared ledger. According to the start, their technology is more efficient than any other existing protocol. It was created specifically for banks and other financial institutions. Anyone interested in technology will need to work with an Ethereum-based platform known as CreditMint for corporate debt insurance. Pocock said:
"We have been in talks with over 20 leading financial institutions specializing in corporate private debt, including some of the top 10 banks in the world.The names of the first group of users will be announced in January 2019. In addition to improving privacy, Start up will also increase the speed of settlement loans. "
Many large banks are already gravitating to authorized and private blockchains such as the one launched by CLS on Tuesday. The first users of this blockchain are Morgan Stanley and Goldman Sachs. Pocock said he believed that established financial institutions will benefit from the use of a public blockchain. In his words:
"The elimination of settlement risk, immutability and access to data from a single source are some of the advantages of a public blockchain, but these financial institutions need complete privacy."
Pocock states that it is impossible to have this kind of privacy on the Ethereum public blockchain and that is why these institutions have limited market activities to private blockchains. The team responsible for the AZTEC project has been talking to ConsenSys for months.
ConsenSys Executive Director, Min Teo, stated that AZTEC technology is effective. In his words:
"We are pleased with the resilience provided by our zero-proof technology: Compared to other available technologies, AZTEC is the closest to production and in terms of gas cost, it is also the most economical as only a small amount of ether is needed to make the system work. "
In a press release, Joe Lubin, founder of ConsenSys and co-founder of Ethereum, said that his firm is ready to support CreditMint and AZTEC in the introduction of scalability, privacy and confidentiality based on zk-SNARKs.
Scaling, Speed And The Blockchain
At the moment, nobody knows if AZTEC technology will provide in terms of scalability and speed, so that it is ideal for businesses. Will have to solve the problems of downsizing that these companies have to face if they want to get a broad adoption.
Still talking about technology, Pocock said:
"If the technology does not scale efficiently, it would not be useful: if it can process a transaction per second through a public network, it would be much faster than the existing scaling solutions." Today, it is sufficient for CreditMint to transfer the debt private companies to a public blockchain It would take only milliseconds for the system to build and test the evidence with zero knowledge. "
According to reports, the start will create more features that will increase efficiency in the coming months. The company is still raising funds for the project.