Coti to Transition to Privacy-Focused Ethereum Layer-2 by 2024
Summary:
Coti, an enterprise-grade blockchain platform, is set to transition from a standalone protocol to a scalable, privacy-oriented Ethereum layer-2 in 2024. The forthcoming Coti V2 will employ garbled circuits, a cryptographic technique ensuring transactional confidentiality. Coti CEO, Shahaf Bar-Geffen, stressed the role of privacy in decentralized finance applications, stating the new protocol will primarily serve enterprises by facilitating blockchain-based functions and preserving user privacy across sectors like finance and healthcare.
The blockchain platform Coti is preparing to shift from an independent protocol to a layer-2 solution on Ethereum, ready by 2024, enabling scalable transactions while preserving user privacy. This shift will enable Coti to extend its privacy-oriented features to a wider audience. The new protocol, Coti V2, utilizes an innovative cryptographic methodology known as garbled circuits which secure sensitive data by masking the mechanics behind transaction processes. This multi-party computation protocol (MPC) allows for computations involving multiple parties, all while keeping the inputs and interim variables confidential.
The garbling protocol concept, which originated in the 1980s, has become a pivotal element of technologies that prioritize user privacy. They allow individual privacy to be maintained throughout multi-party computations and prove beneficial in scenarios where confidential information is involved but cannot be disclosed.
Coti’s CEO, Shahaf Bar-Geffen, describes how this protocol can safeguard sensitive data from being distributed among competitors, partners or customers that use their blockchain. He emphasized that privacy and confidentiality in blockchain transactions should be the norm, not an anomaly, as it is in traditional business systems.
In the context of Coti V2, garbling protocols present a revolutionary approach by fostering transactions and the execution of smart contracts that ensure privacy among the stakeholders. Bar-Geffen noted the indispensable nature of transaction confidentiality in decentralized finance applications, where it bears the same weight as transaction integrity.
The primary ambition for Coti is to enable enterprise features on a blockchain network while fully maintaining privacy. Bar-Geffen expressed that platforms centered on providing privacy by means of anonymity have the potential to cross regulatory lines and may not effectively ensure a compliant foundation for the wider ecosystem.
The vision for Coti’s V2 protocol is to address the need for enhanced privacy protection in sectors such as finance and healthcare. The existing protocol, designed for enterprises, facilitates the management of blockchain, custom tokens, wallets, website integrations, and provides fiat on and off-ramp provisions.
Coti V2 is on track for an initial launch of the developer net in the second quarter of 2024. Coti currently supplies the web3 applications with digital infrastructure at layer 1 that includes resources for wallets, tokens, and payment modules. The total value locked into its current layer 1 protocol stands at $31 million.
Published At
12/13/2023 6:00:00 PM
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