Blockchain privacy receives a boost with COTI's introduction of Layer 2 Network
COTI Introduces Privacy-Focused Layer 2 Network for Enhanced Blockchain Adoption
Cryptocurrency platform COTI is set to distribute tokens as part of an initiative to encourage user adoption and integration of its new Layer 2 network into MetaMask and other popular blockchain infrastructure.
The new network, a privacy-focused, EVM-compatible blockchain platform, leverages advanced cryptographic technology called Garbled Circuits to enable encrypted smart contract execution and private transactions without revealing sensitive data onchain. This innovative approach allows users and enterprises to transact discreetly while complying with regulations by enabling selective disclosure of information when needed.
Key features of COTI's Layer 2 network include the use of Garbled Circuits, EVM compatibility, Decentralized Confidential Computing (DeCC), Privacy 2.0 Paradigm, and support for Trusted Execution Environments (TEEs). The network supports privacy-preserving applications such as AI agents, prediction markets, and DeFi, bridging the gap between the need for privacy and institutional requirements for transparency and compliance.
The implications of this new Layer 2 network are significant. It is expected to enhance enterprise and institutional adoption by addressing privacy requirements alongside compliance and transparency, making blockchain technology more appealing and practical for financial institutions and businesses operating globally. The network could also catalyse wider blockchain privacy adoption, fostering a growing ecosystem of privacy-focused Web3 projects, potentially accelerating mainstream acceptance of privacy as a default blockchain feature.
Moreover, the privacy enhancements help mitigate risks related to data leakage and front-running, boosting user trust and expanding the types of applications feasible on public blockchains. The network facilitates private yet accountable onchain activity, as transactions and data remain encrypted and confidential but can be selectively disclosed to regulators or authorized parties, enabling regulatory compliance without public exposure of sensitive information.
With the introduction of its Layer 2 network, COTI has taken a substantial step towards making blockchain privacy practical, efficient, and scalable. Major Web3 players, including Bancor, Band Protocol, MyEtherWallet, and PriveX, are incorporating COTI's privacy layer into their operations. The network is compatible with multiple blockchains, broadening its applicability across diverse ecosystems.
COTI's Privacy-on-Demand feature addresses the challenge of blockchain privacy, particularly among businesses and institutions. The new network includes a blockchain explorer and a bridge for a seamless transition from the earlier version. The integration of Garbled Circuits provides developers and enterprises with an effective means to secure financial transactions, manage real-world assets, and facilitate AI-powered digital interactions.
The advancement is expected to empower businesses, developers, and individuals seeking greater confidentiality in their blockchain interactions. By eliminating one of the key obstacles to mainstream adoption, COTI is contributing to a more secure digital transaction landscape. COTI has extended its presence into the public sector, participating in initiatives like Israel's Digital Shekel project. The company is also preparing to announce further collaborations in government-backed digital currency programs.
In summary, COTI's Layer 2 network introduces a practical and scalable blockchain privacy model emphasizing encrypted computation, regulatory compatibility, and broad ecosystem collaboration, marking a significant step in blockchain's privacy evolution. The network paves the way for a new era of secure digital finance.
The privacy-focused Layer 2 network introduced by COTI leverages advanced technology such as Garbled Circuits for encrypted smart contract execution and private transactions.
This new network, designed to enhance blockchain adoption, particularly among financial institutions and businesses, offers a practical and scalable blockchain privacy model.
