Aztec released a v5 Executive Alpha version, which began to introduce programmable privacy into the Etherwood application. The new version allows developers to address both open and private in the same two-tiered environment, with the aim of bringing privacy smart contracts closer to actual availability.

Private calculation to user device

The core change in this architecture is the transfer of the calculation process for private transactions from the network node to the user device end. Users complete their private calculations locally and then produce a zero-knowledge certificate and submit it to the chain for validation instead of exposing the transaction input, output and execution data to all certifying officers, as is the case with the Taipei Master Network.

Aztec indicates that this approach allows the validity of the transaction to be verified without disclosing sensitive information, while preserving the security of the Taifung. In other words, the chain does not directly and publicly specify the input, transaction amount or account identity, but only validates the status change.

Open and private

One of the long-standing difficulties faced by the privacy chain is that multiple users are prone to conflict when updating the same open state at the same time, which limits their ability to interact with DeFi infrastructure, such as shared mobility pools. Aztec uses a tiered approach in v5 to try to circumvent the problem.

Of which the private asset is stored in a UTXO-like note tree, the open data is maintained by key-value tree. During the execution, the private function can be called by the public function that the Mr. delayed execution and then processed within the life cycle of the same transaction. The aim is to make private and open operations work in tandem, while reducing competitive problems.

Aztec believes that this model is more appropriate for the need for confidential calculations, but must also have access to open ecological applications such as shared mobile pools, confidential blending and selected DeFi protocols.

Face to DeFi and Select Disclosure

Apart from the trade privacy, Aztec has positioned this executive layer as a tool to reduce the risk of robbery and MEV. As transaction details are not made public prior to their submission in status, it is more difficult for external observers to reorder or extract value based on pending transaction information.

The team also mentioned that the architecture could be used for confidential order placement, private liquidity and “selective disclosure” compliance systems. In other words, users do not have to disclose a complete identity record, but only the information required for supervision or business, as evidenced by a viewing key or zero knowledge.

The Aztec co-founder and CEO Zac Williamson had previously stated that chain privacy should not be confined to hidden wallet addresses, but should also cover the privacy of users, the confidentiality of transactional data and the execution of private smart contracts. Aztec also incorporated the zero-knowledge identification capability into its own ecology following the acquisition of ZKPassport in May 2026. The tool had previously been used to prevent witch attacks and to screen for sanctions in the sale of AZTEC coins.

There was a security incident with the old product.

Before this Alpha edition was released, Aztec Labs also handled two safety incidents related to old products. Earlier this month, the company disclosed that the team was investigating the possible use of a payment product that had been introduced in 2021 and had since been discontinued, and that approximately $2 million had been diverted from a non-changeable smart contract.

Aztec states that the affected system was disabled in 2022 and that there was no administrator key, which prevented the team from suspending or upgrading the contract. Another discontinued product, Aztec Connect, was also used for the old RollupProcessorV3 contract, at a loss of approximately $2.1 million.

Both Aztec Labs and Aztec Foundation stated that the two incidents had nothing to do with the current Aztec network and the AZTEC ERC-20 tokens, and that they had affected the old infrastructure that had remained on the Etherak after the line.