The Aztec protocol intends to update its L2 privacy system to the most recent version, on the Ethereum network. As a result, the new upgrade is called “Connect” and is intended to offer privacy for smart contract data.
Previous Aztec DeFi Protocol
Aztec earlier launched zkmoney, a private finance security protocol. Users on the former DeFi platform could conceal transaction histories on the Ethereum network. The disadvantage is that it only serves as a single privacy option.
Furthermore, zkmoney is incompatible with other Ethereum apps when it comes to implementing data privacy on the Aztec platform.
Meanwhile, updating the zkmoney protocol will improve the platform, hence the addition of Connect. The Aztech development team is working hard to establish Connect as the leading privacy-preserving protocol with the latest update.
Furthermore, the team wants Connect to be a better option to other L2 competitors such as Arbitrum, StarkWare, and Optimism.
Other notable decentralized finance (DeFi) apps for the Aztec platform include Lido, Compound, Aave, UniSwap, and Ribbon.
The apps indicated above will be able to host their smart contracts on the Aztec network using the Aztec Connect.
While commenting on the new development, Aztec’s head of growth, Jonathan Wu, said that the new Connect is an essential aspect of the Aztec network. Aztec Connect, according to Wu, would create several apps for the Ethereum network.
The team would accomplish this by linking contracts using the software development kit. And connecting the various arrangements will provide secure privacy.
He noted that, unlike other Layer 2 protocols, Aztec Connect provides consumers with privacy from the browser extension to the transaction process.
The expansion of DeFi and related use cases has forced solution providers to find new approaches to meet growing difficulties. As a result, Aztec has taken the initiative and prioritized the privacy of its users.
Aztec’s development team intends to make transactions private for users, and updating the Aztec L2 is key to accomplishing this goal.
However, Aztec must first work on scaling its existing systems; after the L1, follows the L2, and then successive upgrades.
Because it is the most prominent blockchain protocol capable of making everything click, the Ethereum ecosystem is critical to the continued onboarding of the Aztec Connect.
User Privacy and DeFi
The financial ecosystem has changed as a result of the disruption caused by crypto and blockchain technologies. As a result, decentralized apps have evolved to the point where permissionless transactions are in high demand.
Aztec intends to leverage changes in the financial sector to broaden Web3 privacy via an improved protection system. The DeFi sector cannot progress without addressing privacy in a transaction.
Meanwhile, Aztec Connect is a future version of the L2 privacy protocol that will allow smart contracts to be onboarded in the DeFi domain.