Will Privacy for dApps Help Ethereum's Adoption?
Ethereum is going to have an interesting year in 2020. Ethereum 2.0 is due to launch which will introduce a multitude of changes to the world's second most popular cryptocurrency. This includes a shift from Proof-of-Work to Proof-of-Stake consensus model, and sharding. These changes are expected to greatly improve Ethereum's scalability.
While improving Ethereum's scalability is a step in the right direction, some of the critic regarding Ethereum and DeFi (decentralized finance) was regarding privacy features. This was primarily vocalized by Twitter influencer Udi Wertheimer. Just a few days ago Wertheimer claimed that there will be no Ethereum project that will offer privacy in a year.
You want to take a bet? The return of IS RIGHT? In 1 year there will be no Ethereum project that can actually help users maintain privacy. There will only be science projects that offer bad practical privacy with flashy ux— Udi Wertheimer (@udiWertheimer) January 27, 2020
Introducing Aztec - Privacy Options on Ethereum's dApps
It seems that Wertheimer might have got it wrong. Just a few days after his tweet, Aztec revealed that its second layer privacy protocol has been released.
Using Aztec Protocol's SDK, dApp developers can integrate privacy options into their dApp. Another core part of their technology is the Aztec Crypto Engine which verifies the correctness of private transactions.
Essentally using Aztec's solutions three different types of privacy are obtainable. This includes user privacy, data privacy, and even code privacy which makes smart contracts confidential. The usage of Aztec's privacy will not be exclusive to DeFi but also web 3.0, a blockchain-based censorship resistance internet.
While privacy options for Ethereum's dApp are interesting and probably essential, one must keep in mind that it will not make ETH transactions confidential. So Ethereum will not compete with Monero or Zcash anytime soon. Regardless, it seems that 2020 will be an interesting year to follow Ethereum.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado