COTI Launches Layer 2 Mainnet with Privacy-as-a-Service

COTI’s much anticipated Layer 2 has launched at last, introducing high-speed confidential transactions for web3 applications and services.

The successful deployment of COTI V2 is the product of two years of intensive research and a whole lot of hard work. Its versatile privacy solution will apply to all apps built on COTI’s EVM-compatible chain, as well as on other networks thanks to its compatibility across the omnichain ecosystem.

The new-look COTI will allow web3 applications to realize their full potential – which means privacy that’s built into every dapp and protocol that leverages its proprietary technology. The underlying tech behind COTI is Garbled Circuits, enabling super-light design to ratchet transaction speeds up to 3,000x greater than other existing solutions. Garbled Circuits is designed in collaboration with Soda Labs, the general-purpose secure computation network.

What COTI Does Different

As a rule, privacy chains take two differing approaches to confidentiality, either obfuscating every transaction on their network or offering an opt-in service where users can select whether they want their transaction to be hidden or not.

COTI has put some distance between itself and the rest of the market with an entirely different philosophy and mindset. Instead of focusing on retail-level investors, COTI empowers developers to control the degree with which they will support private transactions. 

This shift in emphasis is best explained by COTI’s focus on enterprises over retail, with the benefits propagating to individuals through the advancement and adoption of the technology as the COTI partner ecosystem grows.

COTI believes the lack of privacy solutions geared for institutions remains a major friction point for the industry, discouraging major players from entering the market as their needs remain unfulfilled. One example is in the field of Real World Assets (RWAs), where sensitive data must remain private in certain cases – otherwise some enterprises are unable to participate.

COTI’s privacy technology aims to maintain the balance between security, privacy, and compliance, and if this thesis is correct it could deliver a pathway to much wider crypto adoption.

Partners Pile Up

COTI is already onboarding major industry players with Bancor and its Carbon DeFi platform – Band Protocol – as well as MyEtherWallet, and PriveX. It’s also expected to announce further partnerships with other big players in the coming weeks, inviting speculation on who will be next.

Elsewhere, COTI’s involvement in the Digital Shekel pilot in collaboration with Bank of Israel shows that it has many irons in the fire, and remains well connected with major institutional and governmental players. For now, COTI remains tight-lipped on what will follow, only stating that there will be a forthcoming announcement that will reveal “the expansion” of these efforts. 

As part of its mainnet launch, COTI is offering a little something back to the community, dropping 100 $COTI tokens to tens of thousands of wallets. To qualify, users will need to add COTI’s Layer 2 network to their MetaMask wallet, whereupon tokens should show up in their account balance. There will also be a new explorer and bridge to onboard legacy COTI users to the new L2 where a world of opportunity awaits.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.