A16z-backed Aztec Network joins forces with Nym to bolster network privacy

Quick Take

Aztec will incorporate Nym’s mixnet into its Layer 2 rollup, which supports transactional privacy.
Nym’s mixnet technology is designed to encrypt data and randomly route network traffic.

Ethereum Layer 2 Aztec Network announced a strategic partnership with Nym Technologies to integrate its mixnet, a move meant to amplify the network's privacy.

Aztec will incorporate Nym’s technology, improving its transactional privacy capabilities. The team said that by channeling requests through Nym’s mixnet, users’ identifying information such as location and IP addresses are effectively anonymized.

A mixnet is a network that can encrypt and randomly route traffic on any given network, making it difficult to trace on-chain communication.

What is Aztec?

Aztec Network is a Layer 2 solution that has been under development for a couple of years. The core team is building a general-purpose smart contract Layer 2 blockchain for applications, which utilizes its own Rust-based programming language called Noir, and offers optional privacy features. Its integration partnership with Nym will address a major component of the privacy stack for Aztec.

“Aztec recognizes a holistic privacy stack is important when designing and implementing blockchain solutions," said Jon Wu, Aztec’s Head of Growth. "We are committed to incorporating privacy-enhancing technologies like Nym to ensure user privacy remains a top priority.”

Aztec, in a previous interview with The Block, revealed that DeFi apps such as Lido, Compound, Ribbon, and Uniswap had shown interest in launching on Aztec.

Aztec raised $100 million in Series B funding in December 2022. Nym’s development team secured $13 million in funding in 2021, with Andreessen Horowitz serving as the lead investor for both projects.