Aztec is addressing Ethereum's transparency challenge by introducing a new privacy infrastructure that combines private and public states through its Ignition Chain and Noir language. This approach enables 'programmable privacy' without compromising verifiability, safeguarding sensitive data for users and institutions. Aztec also employs decentralized sequencers and minimal disclosure compliance tools like zkPassport to balance privacy and compliance, marking a significant step towards a 'privacy-by-default' future for Ethereum.