tl;dr
EY has updated its enterprise-focused Ethereum layer-2 blockchain Nightfall to a zero-knowledge rollup, offering near-instant transaction finality and a simplified architecture. The transition eliminates waiting periods and enhances privacy through zero-knowledge proofs. Despite being publicly avail...
EY has updated its enterprise-focused Ethereum layer-2 blockchain Nightfall to a zero-knowledge rollup, offering near-instant transaction finality and a simplified architecture. The transition eliminates waiting periods and enhances privacy through zero-knowledge proofs. Despite being publicly available, the GitHub repository has not been updated to reflect the change. The platform remains permissioned for EY's corporate clients and integrates industry-standard identity certificates for privacy and security.
EY started developing Nightfall in 2019, aiming to excel in Ethereum technology. This update coincides with improved regulatory conditions for privacy technologies. The transition eliminates waiting periods for transaction finality and simplifies the platform's architecture, providing several advantages beyond speed. Replacing a "cryptoeconomic approach with a cryptographic approach" simplifies Nightfall's architecture and provides "the same privacy and scaling that version 3 enabled, but now with near-instant finality and a simplified architecture," according to Paul Brody, global blockchain lead at EY.
While optimistic rollups require game-theoretic security assumptions and economic incentives to catch fraud, zero-knowledge implementations provide stronger cryptographic guarantees. The new design also enhances privacy through zero-knowledge proofs that allow transaction validation without revealing underlying data. Nightfall remains permissioned for EY's corporate clients despite its open-source code base. The platform enables private transactions on Ethereum while maintaining the main network's security benefits and reducing costs. Enterprise users would still benefit from Nightfall's integration of industry-standard identity certificates, which prevent anonymous usage while preserving transaction privacy.
EY began developing Nightfall in 2019 with the goal of excelling in Ethereum technology. The timing of this update coincides with improved regulatory conditions for privacy technologies, following the U.S. Treasury's decision to lift sanctions on Tornado Cash, a previously blacklisted crypto mixer.