TACEO is a next-generation cryptographic project introducing the concept of Private Shared State — a secure computation environment that enables encrypted data processing without revealing its contents. Founded in Austria, it already collaborates with major players like Worldcoin and offers functional tools for generating zero-knowledge proofs. Backed by Archetype, a16z, and others, TACEO is becoming a key player in building the privacy infrastructure for AI, Web3, and DeFi.
- Project History and Support
- Private Shared State Technology
- TACEO Products
- Use Cases and Integration
- Outlook and Challenges
Project History and Support
TACEO was founded in 2022 by a team of cryptographers from Graz University of Technology (TU Graz), previously known for developing Poseidon hash — a hashing algorithm used in zk‑applications. The original idea was to create a secure environment for collaboration on encrypted data without decryption. This became especially relevant as interest in private computation grew within blockchain and AI sectors.
In July 2025, the startup raised $5.5 million (or €4.8 million) in a seed funding round led by Archetype with participation from notable investors like a16z CSX, Cyber Fund, A.Capital Ventures, and Polymorphic Capital. The funding is allocated toward scaling products, team expansion, and real-world integration — including in DeFi, decentralized ID systems, and secure AI models.
Private Shared State Technology
At the core of TACEO lies the Private Shared State (PSS) — an encrypted state accessible to multiple participants without revealing raw data. To verify integrity and correctness of computations, TACEO introduces its proprietary coSNARKs mechanism, combining two approaches:
-
MPC (Multi-Party Computation) — secure joint computation between multiple parties;
-
ZK Proofs — proof mechanisms that reveal no underlying data.
This approach enables systems to:
-
perform secure computations on encrypted data;
-
publish cryptographically verifiable results;
-
operate with dynamically updated private state — crucial for DeFi and AI models.
The key feature is public verifiability of results without exposing the data itself. This gives TACEO an edge over both public blockchains, where data is transparent, and centralized solutions that lack cryptographic auditability.
TACEO Products
TACEO is not just theoretical — the team has already developed tools ready for real-world integration. These solutions are aimed at developers seeking to implement secure computation without compromising performance or architecture.
Currently, TACEO’s ecosystem includes:
Core tools:
-
TACEO:Proof — a production-ready network for remote ZK proof generation without data leakage. It supports monitoring, independent nodes, and high-speed performance.
-
CoCircom — an MPC-based execution environment for Circom circuits, offering full support and stability.
-
CoNoir — a similar tool for the Noir language, currently under active development.
These tools are already being used in pilot and commercial projects, including Worldcoin, and demonstrate robust performance under load. Easy integration (less than 10 lines of code), data protection, and high speed make them attractive in Web3, AI, and fintech sectors.
The company continues to enhance its toolset — planning to support TEE (Trusted Execution Environments), expand language support, and improve interoperability with decentralized infrastructures. TACEO aims to offer a full suite of tools for confidential computing in open networks.
Use Cases and Integration
TACEO has moved beyond theory with real-world deployments. One high-profile example is its integration with Worldcoin by Sam Altman. TACEO developed a secure iris matching system for over 14 million users — all biometric data is processed inside an MPC-protected environment and remains inaccessible even to internal systems.
Here are practical use cases where TACEO is applied:
| Application Scenario | Description |
|---|---|
| AI training on encrypted data | Train neural networks without exposing user data |
| DeFi transactions | Anonymous trades and orders with public verification |
| Decentralized identity | Identity confirmation without revealing personal info |
| Private games and competitions | Game mechanics with verifiable results and no data leaks |
| Sensitive medical data processing | Applicable in healthcare and scientific research |
These examples show how TACEO solves the longstanding trade-off between privacy and functionality. With Private Shared State, both can coexist.
Outlook and Challenges
TACEO offers a solution that’s in demand across industries — from DeFi to AI and digital identity. Its Private Shared State architecture has proven effective, and products like TACEO:Proof simplify the adoption of secure computation.
The project continues to evolve: expanding tool support (e.g., Noir language), improving performance, and enabling external node participation. Plans include stronger decentralization and moving beyond crypto into enterprise and public-sector integration.
Key challenges include scaling, protocol compatibility, regulatory alignment, and establishing new standards. But with a strong team, proven use cases, and investor support, TACEO is positioned to lead the private Web3 infrastructure of the future.
