1/ We're excited to announce our $6M seed round co-led by
@BainCapCrypto
&
@polychain
with participation from
@VitalikButerin
and other members of the Ethereum community.
This round will fund the deployment and continued development of private accounts on Ethereum.
1/ For crypto to reach its next stage of growth, it must be used less for speculation and become more like money. We believe privacy is a necessary condition for this to occur.
@nocturne_xyz
we’re excited to introduce a new primitive to the Ethereum ecosystem—private accounts 🧵
Bittersweet news. Today we're shutting down Nocturne v1 and redirecting our efforts toward a new product in the application space. We wanted to share our rationale, shed light on the new work, and give details for exiting the current protocol.
1/ We launched v1 on mainnet last Wednesday and numbers have been growing day by day. Deposits and deposit sizes are increasing alongside number/volume of user operations. Want to thank everyone who's been supporting the launch and share more on what’s in the pipeline…
Our UI and testnet are up! Seeking out individuals interested in providing early feedback. If you're interested or know others who would be, leave a comment below or DM us!
1/ Why is Nocturne building private accounts? Why not another design? In this post, we distill past approaches to onchain privacy and the motivation behind the Nocturne design philosophy 🧵
2/ Using account abstraction and zero-knowledge proofs, we’ve built a private account layer that lets users send, receive, and transact with their funds, all without exposing their address. Check out our docs to see how it works:
Yesterday the trusted setup instructions were shared around a bit prematurely. We were expecting a couple hundred contributions, the queue is now over a thousand 😅 we're resolving some bandwidth issues and will be looking to follow up with further instructions.
1/ Yesterday, our trusted setup was announced and thousands of participants flooded the queue. We took measures to remove bots but there still remains over a thousand in waiting. We're releasing instructions below but will preface that the wait time is EXTREMELY long (> 1 day).
Anonymous payments on Ethereum is an old, unsolved problem recently receiving new attention. In this blog/thread, we break down the problem space of anonymous payments, EIP-5564, and the remaining challenges 🧵
1/ Thank you to all who participated in the trusted setup over the past couple weeks. We received hundreds of contributions across all 3 circuits. That said we wanted to address a few of the major issues participants faced and how we would improve the UX next time 👇
3/ We believe privacy adoption takes two forms: building separate products for the privacy-conscious (e.g. ProtonMail) and integrating privacy into existing products (e.g. Venmo private pay). We’re building products for both paths, using Nocturne as the base primitive.
4/ The first app we’re building on Nocturne is a vault that lets you privately store your assets long-term, earn yield, and withdraw to burner wallets for trading. This provides a usable, compliant option for anonymity on Ethereum.
We've been quiet lately, heads down on the product.
Rumor has it mainnet is coming soon, sometime between now and December 👀 don't worry, safe onchain privacy will see light again soon 🌄
7/ Testnet is coming soon, with mainnet in the following months 🎉
We’re looking to collaborate with apps/institutions interested in leveraging composable privacy as a new primitive. We’re also looking for great folks to join the team on this adventure. If you’re either, DM us!
5/ However, for privacy to catch on, it must seamlessly integrate into existing experiences. A couple possibilities:
→ A private payments SDK—opt into payment privacy with a single click
→ A private smart contract wallet—transact anywhere with built-in asset privacy
6/ To protect our users and build a lasting solution, we build in address screening and rate limits at the deposit step for compliance. There is no custody risk—the protocol is permissionless once funds are deposited. We will release a follow-up post outlining our rationale here.
Account abstraction is an important paradigm shift in the way people transact on-chain. It changes how we control our assets, improving self-custody UX, strengthening security, and enabling new properties like privacy. The way we view accounts is evolving.
In our last thread, we introduced anonymous payments, EIP-5564, and some outstanding UX challenges.
@nocturne_xyz
addresses these challenges by combining a contract-internal stealth address scheme with a shielded pool. Let’s dive into the design 👇
We live in an on-chain world where private data and identity is now auctioned to the highest bidder. Yes, that includes your data. No one is exempt as-is.
We need something to level the playing field.
#gn
This past year, however, we realized the transition to public L2s and AA must happen before privacy. Users worry about cost/UX first. Moreover, the timing for privacy depends on crypto’s utility. Until these primary barriers are overcome first, privacy concerns remain secondary.
While staking centralization risks were all the discussion last week, we were busy integrating private liquid staking into Nocturne. A sneak peek at the upcoming feature.
Cat’s out of the bag, mainnet is coming. An update on the latest since launching testnet a few months ago👇
• Testnet is stable and being improved based on feedback
• Integrating private swap/staking support in UI
• Adding private information retrieval to speed up balance sync
Deposits, swaps, and staking on Nocturne are now paused. Users will be able to withdraw their funds for one year at . Thank you to everyone who has supported the journey so far and we look forward to the next chapter.
Vitalik highlights the next set of challenges that Ethereum faces—UX and privacy. Contract wallets and privacy combined push us toward a multi-address world.
We’re excited to rise to the challenge and collaborate on new infrastructure to aid this transition.
4/ Lastly massive shout out to
@ctrlc03
and
@PrivacyScaling
for developing p0tion, the tool we used to facilitate and coordinate contributions. None of this would have been possible without the p0tion team. For any other zk teams, would definitely recommend this tool!
The private vault UI is a window into managing your private assets. The UI currently supports deposits to your private account, transfers to fresh addresses, and private swaps/staking. If you have funds in a hot wallet and want to transact w/ seamless anonymity, this is for you.
1/ Last week,
@ArkhamIntel
announced their Intel-to-Earn program, providing incentives for deanonymizing onchain activity 🔎 Analytics tools are needed but naturally (to no one's fault) aid the erosion of privacy over time. This has more serious consequences in the long term 🧵
3/ Longer term, our main focus areas for the protocol will center around the following:
→ lower gas costs via L2
→ improved permissionlessness via proof of innocence
→ allowing EOA/AA wallet authorization to be reused within Nocturne
More details to come in future writing...
For existing Nocturne v1 users, we appreciate all who supported us and provided feedback. We exceeded $500k TVL and $2M volume in a month. That’s said, we want to come back with a new product even more compelling than the last.
4/ Our first user-facing product, the private vault UI, provides a window into managing hot assets stored within your private account.
- Receive/deposit funds anonymously
- Earn yield on idle funds
- Withdraw to fresh wallets for unlinked trading/transacting
3/ The mission of Nocturne Labs is to build infrastructure and products that solve crypto’s most pressing privacy/UX problems. Combining the best ideas from ZK, AA, and stealth addresses, Nocturne creates the abstraction of Ethereum accounts with built-in asset privacy.
This marks a significant milestone in the journey towards a more private and accessible Ethereum. For the first time, users will have a compatible and easy-to-use product resembling a private onchain account.
With more applications and utility, we believe the need for privacy will emerge again but until then, we are focused on the tech and user-facing problems that are of immediate concern today. We will have more to share on the new product in the coming months.
4/ For anyone who has not tried out our v1 and wants a simple interface for onchain privacy, checkout .
And as always, any feedback is appreciated in our Discord ().
5/ Nocturne Labs plans to launch the initial protocol on mainnet this November. Our funding will go towards productionizing our v1 protocol and supporting integrations with protocols, wallets, payment platforms, and other partners.
We initially started Nocturne with the goal of pushing the bounds of account abstraction (AA) and broadening crypto accessibility. Privacy at the account layer was both one of the most unique applications of AA and largest open challenges in crypto.
Between L2s, AA, and data availability, the overhead of building usable applications has been reduced dramatically. Many new users will be onboarded to crypto this cycle in a manner much easier/different than before.
6/ To stay up to date with our upcoming launch, please follow our Twitter and join our Discord.
Discord:
Early users, LPs, and other collaborators, please contact us here:
6/ We appreciate everyone who tried to participate and apologize for the issues. There were some important lessons and we hope other zk projects can learn from our experience too. If you know any folks with an upcoming trusted setup, tag a friend 🏷️ see everyone on mainnet soon!
HOW ABOUT private transfers/payments on evm chains of ANY asset (erc20, erc721) for ANY body ??!
open source
stupid simple
public good
went milady for blessed occasion
code:
Privacy remains a core pillar of money. Securing these types of rights and coming to understanding is never a linear path. Despite today, we are still only at the beginning.
Last Friday, there was an interesting proposal for "enshrined" privacy on Ethereum—EIP-7503. Somewhat related, Vitalik also wrote an article on the nuances of enshrinement. Great to see discussions on both privacy and long-term improvements to Ethereum. Links for readers below 👇
1/ We mentioned last update that we’re adding private swaps to our UI. It turns out no extra contract code is even needed for the feature, it just works out of the box ✨
Since we're often asked how private swaps work, we wrote an explainer 🧵
2/ Please see the trusted setup guide below. We have already received over 500 contributions but for anyone who still wants to contribute, we greatly appreciate the patience.
2/ Short term, we're addressing feedback on communication of errors and offchain reliability. We're working on better surfacing errors around paying gas from your private balances. Additionally, we're improving tx submission reliability after several gas price spikes on mainnet.
As mentioned in our previous announcement, we’re building this new type of abstract account in order to produce new end-user applications on top. Testnet is up, and will be made available in the coming weeks—user components are in alpha.
1/ For crypto to reach its next stage of growth, it must be used less for speculation and become more like money. We believe privacy is a necessary condition for this to occur.
@nocturne_xyz
we’re excited to introduce a new primitive to the Ethereum ecosystem—private accounts 🧵
9/ Overall, Nocturne emphasizes simplicity for end-users. Our v1 is a first step towards private accounts. Long term, the goal is a protocol so seamless that by default, every Ethereum address automatically has a private account. In short, a parallel account layer for privacy.
@nocturne_xyz
we’ve been building solutions to these challenges. We’ll be sharing more on our protocol design and how it overcomes the above challenges. Stay tuned.
We’re proud to bring private accounts to Ethereum and are excited to be a part of the growing AA ecosystem. We look forward to working together to continue expanding the design space for accounts and to pushing forward the broader AA paradigm.
3/ If we have another setup in the future, there are a couple major fixes we would make next time.
→ Make the interface browser-based
→ Use a different authentication method
With EIP-4337, the buzz around public, single-user contract accounts is growing. The potential feature set is expanding—from social recovery to 2FA to ERC-20 gas payments. Smart contract wallets like
@soulwallet_eth
and
@argentHQ
showcase this.
The team will be speaking at BASS, the pre-conference to SBC, next weekend. Tune in to hear more on stealth addresses and practical account-level privacy
• Upgrading indexing infra for balance syncing reliability
• Shoring up contract unit/invariant/fork tests ahead of 2nd audit
• Integrating Ethereum -> Nocturne address registry into user flow
More to come soon 🌙
We’re building a third type of abstract account—a single contract containing an arbitrary number of internal, private accounts. Users can transact out of the Nocturne contract with spends and asset balances concealed through zk.
Conceptually, an account lets you send, receive, and transact with funds. Account abstraction is the separation of account control from private key, allowing for expressive authorization logic that extends beyond the 1 private key = 1 account model.
5/ Authentication: The setup required having a GitHub account > 3 months old with > 5 followers. Some participants started buying extra fake accounts. An onchain mechanism to prevent spam (e.g. temporarily locking funds in a contract) would've likely been more effective.
The core problem with EOA-level stealth addresses is that sending funds to/from a stealth address creates public links. What’s needed is a stealth address system that allows a stealth address owner to move funds without revealing what stealth address funds are coming from.
8/ Scaling ≠ Privacy (2): Nocturne seeks a balance between cost and compatibility. By employing new gas reduction techniques, we cut the cost of deposits and spends to 100k and 350k gas, respectively. Our techniques lead to a reasonable cost without sacrificing compatibility.
2/ Though we took measures to reduce spam, there were still many thousands of artificial bots that filled up the queue. This ended up greatly increasing wait times and degrading UX for honest users.
6/ With the past in mind, our goal was straightforward—build private user accounts directly on L1/L2 with close compatibility to existing Ethereum accounts. Our design philosophy emphasizes two points:
→ Compatibility is key
→ Scaling & privacy should be solved separately
5/ So when we talk about "deanonymization being inevitable," this may be true, but only today. For crypto to succeed long-term, privacy isn't optional, just as user safety isn't. A better global financial system begins by protecting its users.
4/ In fact, when we look at
@coinbase
's recent suit against U.S. Treasury for the Tornado Cash sanctions, this was the exact argument being made. Users of onchain privacy were simply trying to protect themselves and their assets.
Another contract account, which many of us already use, is
@safe
—public, multi-signature accounts, each representing a single joint entity. Major DAOs like
@MakerDAO
and
@ensdomains
use Gnosis Safe for governance proposals.
The meta address allows Alice to derive a shared secret w/ Bob. Using the shared secret, Alice generates a new eth address that Bob controls, transferring funds to this fresh address. Bob can then detect ownership of the new address and derive its key using his spend key.
5/ Hybrid: Aztec Connect (AC) was a mix of the above—a rollup for private DeFi on mainnet. Though AC solved some of the issues above, it still had compatibility issues. Custom bridge contracts were needed per protocol and interactions from mainnet into AC were limited.
2/ Looking to the past, there have been 2 major types of onchain privacy products—alternative L1/L2s and mixers. Though both categories garnered attention, they have ultimately fallen short on the adoption side for several key UX reasons.
3/ Alt L1/L2s: Think standalone chains with privacy-preserving transfers (e.g. Monero, ZCash). The core challenge of building an alt chain is bootstrapping a new ecosystem. This is hard enough alone. Doing so with privacy as the focus over speed/devX/community is even harder.
4/ Browser-based interface: Having the interface for contributions be in the browser rather than the command line would allow for significantly more effective bot detection. Additionally, it would be an easier experience for those not familiar with using the CLI.
8/ Scaling ≠ Privacy (1): Past projects tried solving scaling and privacy together since the gas cost of updating an onchain shielded pool was already high. Unfortunately, the more you lean into scaling (e.g. alt L1), the less compatibility you get with existing ecosystems.
7/ Compatibility: Using/interacting with a private account should resemble using/interacting with a contract wallet—it can do what you expect from an account. Nocturne accounts can receive payments from public accounts and are compatible w/ all DeFi protocols that output ERC-20s.
We've been quiet lately, heads down on the product.
Rumor has it mainnet is coming soon, sometime between now and December 👀 don't worry, safe onchain privacy will see light again soon 🌄