Enterprise Blockchain Coti to Transition Protocol to Ethereum Layer-2 in 2024

Privacy-Focused Approach

Enterprise blockchain Coti has announced its plan to transition its protocol to become a scalable and privacy-focused layer-2 on Ethereum by 2024. This move aims to bring Coti's privacy features to the broader ecosystem.

Garbled Circuits

Coti V2, the new version of the protocol, will incorporate a cryptographic approach called garbled circuits. This technology allows transactions to be processed without exposing sensitive information and data.

Preserving Privacy

Garbling protocols, drawn from the field of multi-party computation (MPC), enable multiple parties to compute a function while keeping their inputs and intermediate variables private. This technique, introduced in the 1980s, is vital for privacy-preserving technologies.

Confidentiality on the Blockchain

Coti CEO Shahaf Bar-Geffen emphasizes the importance of preserving privacy on-chain, stating that sensitive data transmitted as public information on a blockchain is a bug, not a feature. The garbling protocols employed by Coti V2 ensure that transaction details remain private between the involved parties.

Focus on Enterprise Functions

Coti's primary focus will be powering enterprise functions on a blockchain network while maintaining complete privacy. The CEO believes that other platforms that prioritize anonymity for privacy may face regulatory oversight and may not effectively provide a compliant base for the wider ecosystem.

Advanced Privacy Provisions

Coti envisions its protocol catering to use cases that require advanced privacy provisions in finance and healthcare. The current protocol already supports managing blockchain-based products, including custom branded tokens, wallets, website integrations, and fiat on and off-ramps.

Future Development

Coti V2 is scheduled for a developer net release in the second quarter of 2024. Currently, Coti provides digital infrastructure for Web3 applications at a layer 1 level, offering tools for wallets, tokens, and payment modules. The current layer 1 protocol has $31 million total value locked.