Ethereum users get another way to pay privately as zk.money returns after three years
Ethereum users can now make private payments with the relaunch of zk.money, a self-custodial wallet by Aztec Network, enhancing transaction confidentiality.
In a significant boost for privacy enthusiasts, Ethereum users are getting a brand-new way to pay privately—thanks to the relaunch of zk.money after a three-year hiatus. This self-custodial wallet utilizes the Aztec Network to mask payment details while still allowing users to make transactions through readable links or names.
What Is zk.money and How Does It Work?
Developed by Aztec Labs, zk.money lets users hide payment amounts, balances, and recipients, mitigating the risk of exposing sensitive financial information. However, deposits made from Ethereum remain publicly traceable. This means that while you can keep your transaction details private, anyone can still see the source of your funds.
With the recent update, users can deposit dollar-pegged stablecoins—namely, DAI, USDC, and USDT. It's important to note that USDC and USDT are automatically converted into DAI upon deposit, as DAI is the sole currency functional within zk.money.
What Are the Limits and Fees Involved?
The early Alpha release has imposed several restrictions for new users. Each deposit, payment, and withdrawal is capped at $2,500, with a daily deposit limit shared among all users of $50,000. These restrictions serve as precautionary measures while the system undergoes testing of its experimental cryptography. As stated by Joe Andrews, CEO of Aztec Labs, these limits will be reconsidered for potential increase as user confidence in the platform grows.
In terms of costs, each deposit incurs a fee of 35 cents, plus any applicable Ethereum transaction fees. Withdrawals cost 20 cents. You are also granted 100 sponsored transactions daily within zk.money, but transactions can experience delays if the network fee contract runs out of funds.
What’s the Privacy Landscape Like on Ethereum?
While zk.money offers a robust solution for privacy compared to standard Ethereum wallets, it does not entirely eliminate the public trace of deposits. Users can still be exposed through the initial transaction made to fund their zk.money wallet. For example, sending money from an ordinary Ethereum wallet allows others to follow its public transaction history, which can unveil insights into spending patterns or business payments.
Interestingly, the release of zk.money coincides with Ethereum's planned upgrades. Developers are looking into changes for the upcoming Hegotá upgrade in 2027, which may allow privacy apps to manage transaction approvals and fees more autonomously from external services.
What Do Users Need to Know?
The original zk.money wallet operated from 2021 to 2024, during which it saw over 75,000 wallets and processed more than $100 million in transactions. Aztec Labs is promoting this relaunch as a careful blend of privacy and functionality, although users should remain wary as the software has not yet been fully audited. Some recent issues, such as a critical flaw disclosed in August, underline the importance of caution.
With the increasing importance of privacy in the digital age, the introduction of zk.money may prove to be a game-changer, offering Ethereum users more control over their financial data.
Key Takeaways
- zk.money is a new self-custodial wallet that conceals payments on the Aztec Network.
- The wallet supports deposits of DAI, USDC, and USDT, with USDC and USDT converted to DAI.
- Each transaction is limited to $2,500, with a daily deposit cap of $50,000.
- Transactions have associated fees; deposits are $0.35 plus Ethereum fees, withdrawals cost $0.20.
- While zk.money enhances privacy, initial deposit transactions remain publicly traceable.
For those interested in leveraging these new privacy capabilities while trading, consider checking out competitive rates on platforms like Binance, Bybit, Bitget, OKX, or MEXC.