COTI Lays Out Its Vision to Lead as the First Privacy-Driven Ethereum Layer 2 Solution

Tel-Aviv, Israel – COTI COTI, which is recognized for its comprehensive suite of Web3 payment solutions, has unveiled a strategic expansion initiative. Dubbed COTI V2, this upgrade aims to harness state-of-the-art technology to deliver high-speed, scalable privacy solutions on Layer 2 while capitalizing on the security framework established by Ethereum. At present, Ethereum's infrastructure lacks robust privacy safeguards, hindering numerous promising applications from emerging. COTI V2 is set to bridge this gap within the Ethereum ecosystem.

The Web3 space has consistently faced challenges due to insufficient privacy measures across the public blockchain landscape. The current blockchain environment exposes too many vulnerabilities that can be exploited by malicious entities. There is an urgent need for change, and adopting strong privacy-centric frameworks is essential to protect the communities of Web3 users and the decentralized applications (dApps) in operation today. Although transparency is a crucial characteristic of blockchain technology, the current inability to safeguard crucial private information poses risks to users and stifles the growth potential of Web3 as a burgeoning industry. Just like we transitioned from HTTP to HTTPS, the evolution of blockchains is equally vital.

To address this pressing issue, COTI V2 intends to position itself as an Ethereum-compatible Layer 2 solution. Rather than developing a separate Layer 1 blockchain, COTI is forming strategic alliances within the Ethereum ecosystem to optimize existing liquidity and security while channeling innovation into areas currently underdeveloped in the Web3 landscape.

The first hurdle COTI plans to overcome is facilitating business transactions on the blockchain with complete privacy. While some platforms have adopted anonymity as a means to offer privacy, this strategy often raises significant regulatory concerns and fails to foster a healthy, sustainable ecosystem. Instead, COTI V2 will implement cryptographic measures that empower users to complete transactions without revealing sensitive details, such as transfer amounts, voting preferences, or any private data. This advancement unlocks a plethora of innovative applications across various sectors, including finance, healthcare, and social media. By establishing this critical and sophisticated privacy framework, we could witness a remarkable uptick in Web3 development.

To achieve this unparalleled privacy while maintaining impressive speed and scalability, COTI V2 will utilize a highly specialized cryptographic technique known as Garbled Circuits. This innovative method boasts exceptional efficiency, outperforming current Zero-Knowledge (ZK) solutions by a factor of ten.

According to COTI CEO Shahaf Bar-Geffen, \"Broadcasting sensitive data as public information on a blockchain is a flaw, not a feature. This level of exposure is unacceptable in traditional business frameworks, so why should it be any different on-chain? COTI V2 will rectify this issue by shielding sensitive data from competitors, partners, and clients. This will empower businesses to harness the advantages of blockchain technology while transitioning to the Web3 space through an environment meticulously designed for speed, scalability, and exceptional performance.\"

COTI's ambitious strategy for creating a scalable and privacy-oriented platform is firmly established from the outset. The team's specialized skills and technical prowess, coupled with the decision to operate as a Layer 2 solution on Ethereum, equips them to address substantial gaps within the Web3 sector. The successful development of COTI V2 is anticipated with great interest by various industry stakeholders, particularly those eager to leverage privacy-sensitive applications in the Web3 arena.

The development environment for COTI V2 is set to launch in Q2 2024, closely followed by the introduction of a testnet and ultimately the mainnet launch of COTI V2, ushering in a transformative phase for blockchain adoption in business.

About COTI

COTI builds the digital foundation for Web3 applications, encompassing tools for wallets, tokens, and payment systems. Acting as a scalable Layer 2 solution, COTI V2 integrates a privacy layer into on-chain products and services, laying the groundwork for transformative Web3 innovations. With a vast global community, an extensive partner network, and decades of collective development experience, COTI possesses the necessary resources to guide businesses on their Web3 journey.

Learn more: https://www.coti.io/