April 19, 2024
ti to Serve as Ethereum's Privacy Layer 2 in 2024
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Coti to Serve as Ethereum’s Privacy Layer 2 in 2024

Coti is planning to enhance privacy-focused functionality within the Ethereum ecosystem by introducing a new layer-2 protocol. The enterprise-grade blockchain platform aims to transition its protocol into a scalable and privacy-focused layer-2 solution on Ethereum by 2024.

Coti details its shift from a standalone protocol to an Ethereum layer 2 to extend its privacy features across the broader ecosystem. The upcoming Coti v2 incorporates garbled circuits, a cryptographic approach that facilitates transaction processing without exposing sensitive information and data.

Garbled circuits, rooted in multi-party computation (MPC), enable multiple parties to jointly compute a function while keeping both their inputs and intermediate variables private. Originating in the 1980s, this technique has become crucial in privacy-preserving technologies, offering the advantage of preserving individual input privacy during multi-party computation.

Coti CEO Shahaf Bar-Geffen highlights the unique aspect of Coti v2’s garbling protocols, enabling private transactions and smart contract executions while maintaining confidentiality between involved parties.

“This level of privacy is particularly important in decentralized finance applications where transaction confidentiality can be as critical as transaction integrity.”

Bar-Geffen emphasizes Coti’s focus on empowering enterprise functions on a blockchain network with complete privacy. Unlike platforms emphasizing anonymity for privacy, Coti aims to comply with regulatory oversight while providing effective privacy solutions for the wider ecosystem.

The CEO envisions Coti’s protocol catering to use cases in finance and healthcare requiring advanced privacy provisions. The current protocol targets enterprises, facilitating the management of blockchain-based products such as custom-branded tokens, wallets, website integrations, and fiat on/off-ramps.

Coti v2 is slated for a developer network release in the second quarter of 2024. At present, Coti operates as a provider of digital infrastructure for Web3 applications at the layer-1 level.

The platform offers various tools, including wallets, tokens, and payment modules, contributing to the development and functionality of decentralized applications. Remarkably, the existing layer-1 protocol has achieved a total value locked of $31 million, underscoring the platform’s significance and adoption within the blockchain ecosystem.

Image by rawpixel.com on Freepik

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