COTI Announces ETH L2 Network For Developers To Leverage Its $100 Million Fund Targeting Key Use Cases Like Confidential DeFi And Encrypted Data Management.
The COTI Foundation has taken a significant leap forward in its commitment to improving privacy and scalability in the blockchain space by announcing an upcoming ETH Layer 2 (L2) Developer Network. This initiative aims to leverage its nearly $100 million development fund, which will be disbursed in COTI tokens, to drive innovation and growth in the COTI ecosystem.
The blockchain industry, heralded as creating borderless finance and trustless interactions, often struggles with the challenge of privacy. The transparency inherent in Web3 is a double-edged sword—useful for democratizing organizations, but a stumbling block for many other applications due to privacy concerns.
COTI V2 is ready to address these issues with Garbled Circuits, a pioneering privacy solution that is both 1000 times faster and 250 times lighter than existing technologies, enabling operation on any device. This breakthrough offers a significant advantage over ZK-based solutions, which are typically limited to two-party transactions, by enabling secure multi-party transactions that are critical to both Web3 and traditional Web2 industries.
The COTI Foundation aims to drive the growth of its ecosystem, starting with the Developer Network (Devnet), scheduled to launch early in the second quarter of this year. The COTI V2 Devnet, coupled with an upcoming grant program, will enable developers to build and improve the technology, rewarding their contributions to the ecosystem. Developers will learn about using Solidity for smart contracts, allowing 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 trade-off in DeFi, COTI V2 will enable new primitives such as private AMMs, dark pools, and undersecured lending that depend on user privacy and transaction content privacy. Additionally, COTI V2 technology is set to address the persistent problem of Miner Extractable Value (MEV) exploits in Ethereum DeFi, by encrypting transactions and thwarting leading bots.
Confidential Transactions: In the realm of payments, stablecoins and real-world assets (RWA), COTI V2 offers a solution that maintains privacy similar to traditional financial systems. This will enable the mass adoption of Web3 by providing secure transactions that meet regulatory standards.
Confidential Machine Learning (GCML): The platform’s encrypted on-chain data storage and confidential query capabilities are changing the game for managing sensitive data such as medical records. It also introduces GCML for large language models (LLMs) like ChatGPT, making it easier to improve the service without compromising privacy or intellectual property.
Dynamic Decentralized Identification (DID): COTI V2’s DID system enables the use and verification of personal information without actually disclosing data. 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 solve 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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