Unveiling Three Cutting-edge Privacy-Focused Ethereum L2s in 2024

In the quest for enhanced privacy on Ethereum, three L2 projects emerge

Aztec: Pioneering Privacy with Noir and zkSNARKs

• Revolutionizing Privacy: Aztec introduces Noir, a bespoke programming language, and zkSNARKs to enable private transactions without divulging sensitive details.
• Hybrid Approach: Unlike other zk rollups, Aztec combines private and public execution in a single rollup, leveraging user devices for transaction encryption.
• Accessible Smart Contracts: Aztec's current focus is on creating a platform for engineers to write private smart contracts without intricate zk proof knowledge.
• Next Steps: The project recently unveiled Aztec Sandbox, a testing environment, and plans to launch a testnet early next year.

Fhenix: Shaping the Future with Fully Homomorphic Encryption (FHE)

• Revolutionary Encryption: Fhenix seeks to bring fully homomorphic encryption (FHE) to smart contracts, allowing computations directly on encrypted data.
• On-Chain Capabilities: Unlike zero-knowledge startups, Fhenix keeps data on-chain, enabling the processing of computations from various sources without decryption.
• Developer Engagement: Fhenix launched a developer testnet in July and anticipates a full-scale testnet release of its FHE rollup in early 2024.

COTI: Garbled Circuits for Unparalleled Privacy

• Unique Approach: COTI, in contrast to Aztec and Fhenix, adopts Garbled Circuits for private transactions on its L2.
• Trustless Evaluation: Garbled Circuits allow distrustful parties to evaluate information by submitting encrypted inputs, conducting computations, and obtaining an outcome.
• Upcoming Launch: COTI plans to launch a developer testnet V2 in Q2 2024, followed by its mainnet release.

In Pursuit of Privacy: Future of Ethereum L2s

As Ethereum evolves, these privacy-centric L2 solutions aim to address the transparency challenge, providing a secure environment for transactions without compromising user data.

While these developments hold promise, the crypto world must remain vigilant against potential misuse. Ensuring privacy should not become a sanctuary for illicit activities, as witnessed in the notorious case of Tornado Cash, which allegedly facilitated money laundering. Balancing privacy and accountability remains a critical challenge for the evolving blockchain landscape.