Enterprise Blockchain Coti Set to Become Ethereum Privacy-Centric Layer 2 in 2024

In a move that is likely to capture the attention of the entire Ethereum ecosystem, enterprise-grade blockchain platform Coti is preparing to undergo a significant transformation. By 2024, Coti is poised to transition from its current standalone protocol status to become a scalable, privacy-focused layer-2 solution on Ethereum.

An announcement has unveiled Coti’s plans to bring its distinctive privacy capabilities to the larger Ethereum community. Coti’s upcoming version, Coti v2, will employ a cryptographic method known as garbled circuits. This technique enables the processing of transactions without disclosing any sensitive information or data, offering a significant advancement in the field of privacy preservation.

Garbled circuits, rooted in the domain of multi-party computation (MPC), facilitate the computation of a function by multiple parties while maintaining the confidentiality of their inputs and any intermediate variables. This approach is particularly beneficial in scenarios where confidential data is integral to a computation yet must remain undisclosed.

Coti’s CEO, Shahaf Bar-Geffen, emphasizes the importance of privacy, noting that the transmission of sensitive data as public information on a blockchain should be viewed as a flaw rather than a feature. This perspective challenges the status quo, asserting that the privacy standards upheld in traditional business systems should equally apply to on-chain activities.

Bar-Geffen further clarifies that the application of garbling protocols in Coti v2 will allow for private transactions and smart contract executions, ensuring that the details are known only to the parties involved. This degree of privacy is deemed essential, particularly in decentralized finance (DeFi) applications where the confidentiality of a transaction is just as imperative as its integrity.

Looking to the future, Coti is setting its sights on powering enterprise functions on a blockchain network with absolute privacy. Bar-Geffen suggests that unlike other platforms that use anonymity as a proxy for privacy, which can blur regulatory lines, Coti is geared towards providing a foundation that is both compliant and conducive to the broader ecosystem.

Coti foresees its protocol serving crucial roles in sectors that demand stringent privacy measures, such as finance and healthcare. Its present protocol caters to enterprises, facilitating the management of blockchain-based products, including custom-branded tokens, wallets, and fiat integration points.

With the developer net release of Coti v2 slated for the second quarter of 2024, Coti is currently focused on delivering digital infrastructure for Web3 applications at the layer-1 level. This includes a suite of tools for creating wallets, tokens, and payment systems, with its layer-1 protocol boasting a total value locked of $31 million.