COTI announces an ETH L2 Developer Network to leverage its $100M fund, targeting key use cases like Confidential DeFi and encrypted data management.
COTI Foundation has taken a significant leap forward in its commitment to enhancing privacy and scalability in the blockchain space by announcing an upcoming ETH Layer 2 (L2) Developer Network. This initiative is aimed at harnessing its nearly $100 million development fund, to be disbursed in COTI tokens, to drive innovation and growth within the COTI ecosystem.
The blockchain industry, heralded for creating borderless finance and trustless interactions, has often grappled with the challenge of privacy. The transparency inherent in Web3 has been a double-edged sword—beneficial for democratizing organizations but proving to be a stumbling block for numerous other applications due to privacy concerns.
COTI V2 is poised to address these issues with Garbled Circuits, a pioneering privacy solution that is both 1000 times faster and 250 times lighter than existing technologies, allowing for operation on any device. This breakthrough offers a significant edge over ZK-based solutions, which are typically limited to two-party transactions, by enabling secure multi-party transactions that are crucial for both Web3 and traditional Web2 industries.
The COTI Foundation aims to supercharge the growth of its ecosystem, starting with the Developer Network (Devnet) slated for launch in early Q2 of this year. The COTI V2 Devnet, coupled with an upcoming grant program, will empower developers to build and improve upon the technology, rewarding their contributions to the ecosystem. Developers will find familiarity in using Solidity for smart contracts, which will allow them to integrate privacy into existing applications or innovate entirely new use cases.
Key target use cases for the COTI V2 platform include:
Confidential DeFi: Addressing the privacy compromise in DeFi, COTI V2 will enable novel primitives like private AMMs, dark pools, and under-collateralized lending, which hinge on user privacy and transaction content confidentiality. Additionally, COTI V2’s technology is set to tackle the persistent issue of Miner Extractable Value (MEV) exploits in Ethereum DeFi, by encrypting transactions and thwarting frontrunning bots.
Confidential Transactions: In the realm of payments, stablecoins, and real-world assets (RWA), COTI V2 offers a solution that upholds confidentiality akin to traditional finance systems. This will enable the mainstream adoption of Web3 by ensuring secure transactions that comply with regulatory standards.
Confidential Machine Learning (GCML): The platform’s encrypted on-chain data storage and confidential query capabilities are a game-changer for sensitive data management, such as medical records. It also introduces GCML for large language models (LLMs) like ChatGPT, facilitating service enhancement without compromising privacy or intellectual property.
Dynamic Decentralized Identification (DID): COTI V2’s DID system allows for personal information to be used and verified without actual data disclosure. This supports trustless global interactions within a regulated framework without sacrificing sensitive information.
As the blockchain industry evolves, COTI’s innovative approach with Garbled Circuits technology is timely, aiming to resolve the privacy limitations of Web3 and offering superior solutions to those available in Web2. The upcoming COTI V2 Devnet represents a promising opportunity for developers worldwide to contribute to this evolution.
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