Back to the list

Layer-2 Aztec Solution Eliminates The Connect Security Bridge Due To Regulatory Demands

source-logo  news.coincu.com  + 3 more 13 March 2023 09:26, UTC
Project for a Layer-2 solution Ethereum Due to regulatory demands on the “mix transaction” functionality, Aztec submitted a notification to permanently close the Connect security bridge.

On March 13, Aztec Network, a layer-2 Ethereum solution that has evolved toward zk-rollups and is primarily concerned with the confidentiality of transactions, announced that it would be decommissioning a crucial part of the jigsaw puzzle. The Connect security bridge is what the infrastructure consists of in this case.

The project issues a warning that deposits to smart contracts made using Aztec Connect products, such as zk.money and zkpay.finance, will be blocked one week after the news is made. Nonetheless, customers will be able to continue making cash withdrawals for one more year, until March 21, 2024.

Layer-2 Aztec Solution Eliminates The Connect Security Bridge Due To Regulatory Demands

The news comes at a time when the government of the United States of America and other governments are actively working to “lockdown” privacy-promoting protocols like Tornado Cash. FTX has previously detected the Aztec Network (before it went bankrupt), which caused them to halt a transaction involving zk.money. The exchange views zk.money as a “money mixing” method that has a high risk of not working properly.

The Aztec Network was established in 2017, and in July of the previous year, the Connect secure bridge mainnet was publicly introduced to the public. A number of investment rounds have been successfully concluded by this Network, the most recent of which was a Series B capital round for USD 100 million that was led by a16z. A total of 119.1 million US dollars has been raised by Aztec.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.


Similar news (3)
Add similar news