zk-SNARKs on Aztec: Privacy Without Sacrificing Verifiability Public blockchains are optimized for transparency. That’s also their biggest weakness. If every balance is visible, every strategy becomes copyable. If every transaction is traceable, every user becomes profile-able. Privacy for users Verifiability for the network fixes this by changing what gets published. Not the data. Only the proof. What zk-SNARKs really prove A zk-SNARK is not “encryption on-chain.” It’s something more useful: A cryptographic receipt that says a computation was done correctly. Without revealing: • Inputs. • Outputs. • Internal state. • Sensitive logic details. The chain learns one thing only: ✅ the rules were followed. The @aztecnetwork flow in 4 steps 1) User calls a private contract They interact normally, like any smart contract. 2) Execution happens privately (off-chain) The contract logic runs in a private environment using encrypted state. 3) A proof gets generated This proof confirms: “the contract executed correctly according to the contract rules.” 4) Ethereum verifies the proof Ethereum doesn’t need your data. It only needs the cryptographic guarantee. What observers see: • Balances. • Positions. • Transaction logic. • Strategy. What “private smart contracts” means Traditional smart contracts expose everything. Private contracts change the default. On Aztec: • State stays encrypted. • Only authorized users can read/update it. • Outsiders see verification, not execution. That enables: • Hidden balances. • Confidential DeFi strategies. • Private governance logic. • Enterprise workflows with selective disclosure. Why this matters (the real threat model) Public execution creates predictable damage: • Front-running. • MEV attacks. • Strategy copying. • Financial surveillance. These aren’t edge cases. They’re the normal outcome of transparent state. Aztec removes the fuel. If the chain can’t see the data, attackers can’t exploit it. The point Aztec doesn’t trade security for privacy. It keeps Ethereum as the judge of correctness. zk-SNARKs let you have both: Privacy for users Verifiability for the network That’s not optional infrastructure anymore. That’s the next layer of smart contracts.