Enterprise-level blockchain technologyIn 2024, Coti plans to migrate into a layer-2 protocol on Ethereum that is scalable and privacy-focused. Coti will become an Ethereum layer-2 protocol in order to expand its privacy features throughout the ecosystem, according to a statement shared with Cointelegraph.Transactions can be completed using the garbled circuits cryptography technique found in Coti V2s without disclosing private information.Garbling protocols, which originated in the field of multi-party computing (MPC), allow two or more participants to collaborate on the computation of a function while maintaining the privacy of their inputs and intermediate variables.
Since its introduction in the 1980s, the method has grown to be indispensable to privacy-preserving systems.The main benefit of the technology is that it permits multi-party computation while maintaining the privacy of individual input.When sensitive data needs to be included in a calculation without disclosing the information itself, garbling protocols come in handy. Shahaf Bar-Geffen, CEO of Coti, describes how the protocol keeps private information from being disclosed to rivals, partners, and customers using its chain.
“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?”
According to Bar-Geffen, garbling protocols provide a special method in the framework of Coti V2 by facilitating exchanges and the execution of smart contracts in which the specifics are kept confidential between the parties involved.
“This level of privacy is particularly important in decentralized finance applications where transaction confidentiality can be as critical as transaction integrity.”
According to the CEO, Coti’s main goal is to enable business operations on a blockchain network in total secrecy.He asserts that other platforms that emphasize anonymity as a privacy-enhancing feature cross regulatory boundaries and may not always be successful in serving as a compliant foundation for the larger ecosystem.
Coti plans to tailor its protocol to use cases in the financial and medical industries that call for sophisticated privacy protections. Wallets, fiat on-ramps, website integrations, custom-branded tokens, and other blockchain-based products may all be managed with its present protocol, which is targeted towards businesses.The developer net release of Coti V2 is slated for the second quarter of 2024.At the moment, Coti offers layer 1 digital infrastructure for Web3 apps.Tools for wallets, tokens, and payment modules are included in this.The entire value of its layer 1 protocol is locked at $31 million.