TzEL introduces quantum-resistant cryptography for private payments on the Tezos testnet using the network’s Data Availability Layer.
A new post-quantum privacy solution, TzEL, has launched on the Tezos blockchain testnet. The system is designed to support private payments that remain secure against advances in quantum computing.
The solution aims to address vulnerabilities in elliptic curve cryptography, the standard used for blockchain privacy, which may be susceptible to future decryption by quantum hardware. The project addresses the risk of “harvesting” attacks, where encrypted transaction data recorded on-chain today could be decrypted by malicious actors once quantum technology matures.
TzEL applies post-quantum cryptography to both payment amounts and associated metadata, such as encrypted memos. It also gives users controls over data visibility through viewing keys and detector keys.
Arthur Breitman, Co-Founder of Tezos, commented: “Private transactions have a long memory: the data encrypted today may still be around when tomorrow’s attacks arrive. With TzEL, we set out to build a shielded ledger for Tezos whose privacy stack is post-quantum end to end.”
A key challenge in developing post-quantum systems is the size of the cryptographic proofs. TzEL uses zk-STARK proofs, which are significantly larger than standard privacy proofs. This data requirement can cause network congestion on many blockchain architectures.
To manage this, TzEL uses the Tezos Data Availability Layer (DAL), which was integrated into the protocol in 2024. The DAL increases the volume of transaction data that can be published on-chain, allowing the rollup to process large cryptographic proofs without affecting network performance.
While the system is currently in prototype phase on the testnet, it demonstrates that end-to-end post-quantum privacy is achievable within existing decentralised environments.
The development comes as the broader Tezos protocol begins its transition towards quantum-resistant standards to support long-term data security and privacy for users.
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