Aztec

Aztec uses a zero-knowledge proof system for confidential transactions, including minting and burning operations:

Minting:

• Uses a MINT proof to create new AZTEC notes 1 12
• The mint proof allows increasing the supply of AZTEC notes by a trusted party 14
• Minting is controlled by the note registry and requires satisfying a balancing relationship 13

Burning:

• Uses a BURN proof to destroy AZTEC notes 1 12
• The burn proof allows decreasing the supply of AZTEC notes by a trusted party 14
• Burning is also controlled by the note registry and requires satisfying a balancing relationship 13

Transfers:

• Uses JOIN-SPLIT proofs to transfer value between AZTEC notes 1
• Transfers move AZTEC notes between accounts while preserving privacy 13

Minting in Aztec

According to the Aztec Protocol technical specification, Aztec allows the creation of new confidential notes through a MINT proof:

1. Define a minting policy:
   • Controlled by a trusted party (e.g., a stablecoin issuer)
   • Specifies conditions for creating new notes
2. Generate a MINT proof:
   • Proves the minting policy is satisfied
   • Specifies the value and recipient of new notes
3. Submit the proof to the Aztec Cryptography Engine (ACE):

function mint(
    bytes calldata _proofData,
    address _proofSender
) external returns (bytes memory);

1. ACE validates the proof and creates new notes:
   • Increases the total supply of AZTEC notes
   • Adds new notes to the Note Registry