Ignition Chain by Aztec: Decentralized L2 Consensus for the Aztec Network

Ignition Chain by Aztec: Decentralized L2 consensus for the Aztec Network, with sequencer participation via staking, a separate AVM, and a client-side PXE for private functions.

"Aztec just shipped the Ignition Chain, the first fully decentralized L2 on Ethereum. This launches the decentralized consensus layer that powers the Aztec Network."

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How the Layer Works and What Makes It Different?

Ignition Chain establishes a model in which the private and public parts of a transaction proceed separately but within one lifecycle. Private functions execute on the client side in the Private Execution Environment (PXE). The PXE generates proofs for on-chain verification.

In turn, public functions execute in the Aztec Virtual Machine (AVM) on the network side. The environments do not directly interact, which is intended to eliminate side-channel leakage and enable the composition of private and public states in a single scenario. The team also explicitly notes it is not EVM-compatible and uses an alt-VM. For a private state, UTXO-like notes and a separate nullifier tree are used. This separation of execution and state explains why the consensus layer is critical: it orders the public part of the flow and accepts validity proofs of the private part without revealing data.

Get our detailed breakdown on DeFi Fundamentals: A Beginner's Guide to Decentralised Finance (2025).

Validator Participation and Launch Economics

Ignition opens staking for sequencers in a permissionless mode. The threshold for a validator is 200,000 staked $AZTEC. Minimum node requirements are realistic for today: 8-core CPU, 16 GB RAM, 1 TB NVMe SSD, 25 Mbps. At the same time, an estimated APY of 166.65% is variable and depends on the number of validators. Token Sale Highlights lists a low starting floor of $350M, early access is already open, and the public sale is scheduled for December 2, 2025. In other words, the network pays rewards for block production and coordination, while validators take on the infrastructure and the stake.

Will Developers and Wallets Be Happy?

The PXE + AVM model looks promising. It removes the need for a developer to choose between all private and all public. Private functions remain on the user's device and are proven client-side, public functions execute in the AVM, and the Ignition consensus layer packages state updates into blocks and submits a proof of correct state transition to Ethereum.

This flow promises predictable composition: a contract can call private and public parts in one scenario, and the wallet displays the public tree and manages private notes and nullifiers. For an integrator, this means clear interfaces for connecting to the network and no additional trusted roles beyond validators.

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