COTI to Launch Privacy-Focused Layer-2 Chain on Ethereum
Web3 digital infrastructure provider COTI has announced its plans to introduce a layer-2 chain on the Ethereum network that will prioritize adding a privacy layer to its products and services. The new protocol, called COTI V2, will utilize Garbled Circuits, a cryptographic technology that enhances privacy while maintaining high speed and scalability.
COTI’s Solution for Enhanced Privacy
COTI claims that Garbled Circuits is ten times more efficient than the Zero-Knowledge protocol used by other layer-2 blockchains on Ethereum. By leveraging Ethereum’s existing liquidity and security, COTI aims to implement robust privacy protection for the ecosystem.
Addressing the Lack of Privacy in the Blockchain Ecosystem
The motivation behind launching COTI’s new protocol is the absence of privacy and confidentiality across all layers of the public blockchain. COTI believes that the current state of the blockchain ecosystem allows malicious actors to operate freely, and only a privacy-centric architecture can safeguard the Web3 community.
Focus on Building Areas Lacking in Web3
In addition to privacy protection, COTI aims to address areas that are currently lacking in Web3. The first challenge is enabling users to use the blockchain with complete privacy. COTI V2 will implement cryptography, allowing users to execute transactions without exposing sensitive information like payment histories, wallet values/addresses, and more.
Developing a Transparent yet Secure Ecosystem
COTI recognizes that prioritizing anonymity for privacy can lead to regulatory issues and hinder the development of a compliant ecosystem. The new protocol seeks to ensure transparency while protecting user information that could be detrimental to both users and the growth of Web3.
Shahaf Bar-Geffen, CEO of COTI, stated: “Sensitive data transmitted as public information on a blockchain is a bug, not a feature. This isn’t tolerated in legacy business systems, so why should it be tolerated on-chain? COTI V2 will solve for this, preventing sensitive data from being broadcast to competitors, partners, and clients.”
Upcoming Release and Potential Impact
COTI has scheduled the release of the COTI V2 devnet for the second quarter of 2024, followed by the testnet and mainnet launches. The company anticipates that this launch will unlock numerous new use cases in the industry and stimulate immediate growth in web3 development.
Hot Take: COTI Enhances Privacy on Ethereum with New Layer-2 Chain
COTI’s introduction of a layer-2 chain on Ethereum, focused on privacy enhancement, addresses a crucial need in the blockchain ecosystem. By leveraging Garbled Circuits technology and Ethereum’s existing infrastructure, COTI aims to provide robust privacy protection without compromising speed and scalability. This initiative aligns with the growing demand for privacy-centric solutions in Web3. By prioritizing transparency alongside privacy, COTI aims to create a secure ecosystem that fosters compliance and user trust. The upcoming release of COTI V2 is expected to have a significant impact on web3 development by unlocking new possibilities and driving innovation within the industry.
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