The AZTEC protocol allows Zcash and Monero to now be used as Smart Contracts Ethereum

Thanks to the Aztec protocol, Zcash and Monero can now be used as Smart Ethereum contracts

In a piece of news very much appreciated by the global cryptographic community as a whole, the Aztec coding team reported having succeeded in "implementing smart contracts that employ evidence of zero knowledge" so as to hide the details of the parties involved. and the amount being processed.

In relation to their last goal, the development team had the following words:

"The AZTEC protocol can allow confidential transactions for any generic digital resource on Ethereum, including existing resources.To our proof of concept implementation of the AZTEC protocol, we have attached an AZTEC token to the DAI token of MakerDAO.This intelligent contract can be used to convert DAI from its public ERC-20 form into a confidential AZTEC note form. "

What are zero evidence of knowledge?

For those new to the world of cryptography, a proof of zero knowledge can be thought of as a cryptographic technique that facilitates transactions without having to "reveal the asset in question or its total monetary value".

This feature was made famous for the first time by ZCash, but following the deployment of AZTEC protocol, the currency and its native protocol were effectively transformed into an intelligent contract.

More on The Matter

While talking about the Aztec protocol, a representative of the team stated that he was able to correctly execute the aforementioned transaction about 14 days ago. According to the details of the tx, the user was able to transfer a total of 40 from to 0x6, the intelligent zero knowledge contract. This basically means that it facilitated a monetary transaction with a third-party user for an unknown amount (however, the amount could not have exceeded $ 40 based on the details of the TX).

Other important aspects of this entire episode

By successfully executing an anonymous transaction, the cryptic world he returned to be very curious about how the regulatory future of the Aztec protocol now it will sound

In this regard, a spokesman said:

"The implications of this are much broader than the sending of reserved tokens ERC20 – in the coming months we will publish our full and open source implementation of the AZTEC protocol that includes the cryptographic protocols necessary to manage financial instruments at zero knowledge. This includes anonymous voting for governance mechanisms, anonymous identity schemes (eg demonstration of belonging to an authorized group, without revealing who is in that group) and a decentralized exchange of zero knowledge, which will allow people to negotiate AZTEC activities are one with the other without publicly disclosing the values ​​of trade ".

Final take

While for now the AZTEC the team has done something really remarkable, but it remains to be seen if they can achieve such anonymity as and when larger pieces of money are sent to other portfolio addresses (using their native technology). This is because in order to process large financial transactions, there must be an order book that is managed by a sort of authority figure (thus reducing the overall privacy of a single transaction).