TheBlock
Aztec Labs has relaunched zk.money, a self-custodial wallet for private crypto payments, three years after discontinuing its original version. The wallet now runs on Aztec Network, a privacy-focused Ethereum Layer 2, and is designed to keep users’ balances, payment amounts and counterparties off the public ledger. The original product reached more than 75,000 unique wallets and processed over $100 million in volume.
Why it matters
Aztec says the 2023 shutdown was not a rejection of private payments. The earlier system was difficult to expand and could not scale globally, CEO Joe Andrews said. Aztec Labs spent the following three years building Aztec Network, which is now overseen by the nonprofit Aztec Foundation, before returning to privacy products on the network.
The relaunch lands as Ethereum’s public roadmap calls for privacy to become a “first-class property.” Ethereum co-founder Vitalik Buterin has also highlighted the risks of making financial activity publicly traceable. zk.money offers a self-custodial approach: users can access it through the web or run it locally, while Aztec Labs says it cannot spend, move or freeze their funds.
Market impact
Users can claim a handle such as bob.zk.money and send or request payments through links. The handles use Ethereum Name Service technology and can work with apps that support ENS. Aztec also says users can send funds from Ethereum-based exchanges directly to a handle.
Aztec plans DeFi integrations, with potential partner integrations expected in Q4, and a mobile app is also planned for Q4 without a set launch date. The current wallet runs on the newer Aztec Network and was not affected by June’s exploits of two older Aztec smart contracts, which the company said belonged to discontinued products. Adoption of the new wallet and delivery of planned integrations will be key measures of whether the rebuilt infrastructure can support broader use.
Frequently asked questions
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What information does zk.money keep off Ethereum’s public ledger?
Aztec says zk.money does not publish users’ balances, payment amounts or counterparties on a public ledger.
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Why did Aztec discontinue the original zk.money in 2023?
CEO Joe Andrews said the earlier system was difficult to expand and could not scale globally. Aztec shifted its focus to building Aztec Network.
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How can users send payments through a zk.money handle?
Users can claim a handle such as bob.zk.money and send or request payments through a link. The handles use ENS technology and can work with apps that support ENS.
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Can Aztec Labs access or freeze funds held in zk.money?
Aztec Labs says it cannot spend, move or freeze users’ funds because zk.money is non-custodial.
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Was the relaunched zk.money affected by the June contract exploits?
Aztec said the exploits involved two older contracts tied to products discontinued years earlier. The new zk.money runs on Aztec Network and was not affected.
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