Aztec, a privacy protocol developing on Ethereum, announced on Monday the launch of its second iteration, promising private transactions and smart contracts while being cheaper than standard transfers.

The layer two solution adopted by Aztec relies on zkRollups, similar to Loopring or ZkSync. All these protocols rely on zero-knowledge proofs to help Ethereum, scale but come with different benefits and focused use cases.

Loopring focuses on the decentralized exchange experience, while ZkSync aims to be a generalized layer two protocol that could boost Ethereum’s transaction throughput.

Aztec, in comparison, makes a heavy focus on privacy while still allowing a certain degree of scalability. The team says that the rollup can reach 300 transactions per second while allowing shielded ERC-20 token transactions and private interactions with decentralized finance protocols. Users would be able to trade on Uniswap and other exchanges as part of a pooled contract, similar to how it works in Incognito, a cross-chain privacy protocol.

The stated throughput is a far cry from potential figures on other zkRollup solutions, but it is still well above Ethereum’s maximum theoretical throughput of 40 transactions per second. As Cointelegraph highlighted earlier, privacy always carries a performance cost.

One of the innovations introduced by Aztec is Noir, a private smart contract language. This could let developers send private transactions and use on-chain cryptographic routines while benefiting from privacy. The rollup also features social recovery by default and has several usability benefits like human-readable accounts.

The network is currently live on the Ropsten testnet, though no indications were yet given as to its mainnet release.

Layer two technologies are often seen as the next step in Ethereum evolution, allowing to carry some of the burden off the main network while sharding is still being developed.

Competition is fierce in this segment, with the first solutions like OMG Network’s Plasma having reached production. Smart contracts on layer two, which could help DeFi scale, have still largely eluded developers. Solutions like Optimistic Rollups and some types of zkRollups are poised to solve that problem, but are still relatively far off from a full launch.

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