The COTI V2 upgrade represents a significant shift in the blockchain realm, spearheading a new era of privacy safeguards.
In Brief
This exclusive interview provides insights into COTI's distinct method of safeguarding privacy, its efficient integration with Ethereum, recent improvements, and a future-focused strategy set to redefine decentralized software.
With the unveiling of COTI’s With the launch of the COTI V2 upgrade, a crucial dialogue on privacy's significance within today's blockchain context is initiated. Shahaf Bar-Geffen, COTI's CEO, confronts this pressing issue directly. His viewpoints highlight the growing necessity for solutions that enhance privacy, placing COTI in a leading role in this transformative era. By harnessing pioneering technologies like garbled circuits, COTI V2 sets a trend where privacy and operational efficiency work in tandem.
Given that COTI V2 has transitioned to Ethereum and Layer 2, why is privacy such a crucial issue today?
The fact is, blockchains inherently promote public transparency, which might ironically hinder their broader acceptance. If individuals are concerned that using blockchain could reveal personal data, such as their salaries, medical expenses, or transaction histories, they may shy away from it altogether. Given that all data on the blockchain is accessible, true privacy on-chain becomes a challenge. I firmly believe that moving forward, any decentralized application lacking privacy features will struggle to survive.
Over the last decade, two primary focuses in blockchain development have been scalability and privacy, with an increasing emphasis now on privacy. For us, this presents an extraordinary chance to lead in this domain. We implement a unique blend of tested privacy-preserving technologies, particularly garbled circuits.
COTI V2's upgrade allows it to execute complex operations on encrypted data without compromising the confidentiality of the transaction details. Thus, garbled circuits offer superior scalability compared to existing alternatives due to their efficient computational and storage requirements. Our network will be ready to roll out in just a few months.
What about Zero-Knowledge proofs? Do they present viable alternatives to existing privacy technologies?
We have conducted tests with Zero-Knowledge proofs, but they present significant limitations. For instance, conducting multi-party computations with ZK isn't feasible, which rules out utilization for systems like decentralized exchanges. Conversely, our garbled circuits can securely encrypt computations.
How will the Dencun upgrade improve the functionality of COTI V2?
This upgrade is beneficial for us, as it enhances the volume of transactional data processed per block, significantly improving transactional speed while also cutting down transaction fees. Since we introduced this feature during our network's development, we can incorporate it seamlessly without altering our existing framework.
What obstacles do you foresee when merging COTI V2 with future Ethereum updates, and how do you plan to tackle them?
Currently, we don’t predict any significant challenges. COTI V2 is inherently designed to leverage all forthcoming Ethereum updates as they become available. I anticipate a smooth process without major difficulties.
What sets COTI V2 apart from other Layer 2 solutions?
In essence, our approach is distinct from other Layer 2 solutions because we prioritize confidential computing and privacy. Other Layer 2s expose all their data, leaving sensitive information vulnerable. This approach won’t be viable moving forward; protecting personal data will become critical.
To illustrate, many protocols may utilize Trusted Execution Environments, which are costly and not feasible on standard devices; they have also proven susceptible to hacking. Solutions like ZK-SNARKs, while effective, are slow and hard to compute. Then there's Multi-Party Computing (MPC), which works across various devices but lacks speed. Emerging technologies such as Fully Homomorphic Encryption (FHE) promise to allow for multi-party applications, yet they are still costly and suffer from performance issues.
I am confident that our innovation is top-tier; our garbled circuits operate approximately a thousand times faster than competing technologies, while requiring 250 times less storage than FHE solutions, offering a substantial advantage in latency as well.
Additionally, we utilize decentralized sequencers in building our Layer 2 solution, which reinforces decentralization and security. This is a significant factor that strengthens our platform's appeal.
How does COTI V2 maintain adherence to regulations while ensuring user confidentiality?
In essence, we aim to replicate the privacy standards seen in Web 2.0 and traditional commerce systems while staying compliant with AML and anti-terrorism financing laws.
What strategies are in place to facilitate a seamless transition for COTI token holders during the migration to COTI V2 and the token swap?
COTI V2 tokens are set to launch around the fourth quarter when we go live with our Mainnet. Currently, many users hold COTI V1 tokens, making the transition straightforward when V2 tokens are released. To enhance security, we will avoid using smart contracts to minimize hacking risks. Instead, we'll offer the token swap via our existing app, COTI Treasury.
At this moment, we’ve released 40 million COTI tokens, valued at approximately $10 million, for participants in our airdrop initiative. Simply visit COTI's website, and you'll find details in the Treasury app, along with engaging rewards for your involvement.
What collaborations or partnerships has COTI formed to advance its mission in the blockchain ecosystem?
Since its inception in 2017, COTI has cultivated a robust network of partners, integrations, and exchange listings to enhance our visibility. The COTI token is already available on prominent exchanges like Binance, Coinbase, Kucoin, Kraken, and others. Moreover, it can be found on platforms such as Revolut and Binance Pay.
We’ve also formed a solid partnership with Soda Labs, specialists in secure multi-party computing, particularly in implementing garbled circuits. We've undertaken substantial research and development with them.
Our ecosystem includes partnerships in DeFi, secure payment transactions, stablecoins, and tangible assets, as well as innovative wallet solutions. We are also pursuing developments related to AI, such as confidential machine learning and management of sensitive on-chain data. For example, we’re exploring exciting applications like federated learning, meaning we will collaborate with AI partners moving forward.
Looking into the future, what are the significant milestones and initiatives planned for COTI V2 over the next year? How do these align with overarching trends within the blockchain sector?
In the first quarter, we reached a key milestone in February by showcasing the integration of the MPC protocol on COTI V2 and conducting an online demonstration. We’ve recently released our whitepaper, which I encourage everyone to review.
Next up is the developer network release set for the second quarter, during which we'll unveil our grants program. The third quarter will focus on Testnet, followed by the Mainnet rollout and the COTI V2 migration process in the fourth quarter. It’s a tightly packed timeline, yet we're right on schedule. These milestones are strategically aligned with larger trends prevalent in the blockchain domain, like confidential DeFi, decentralized identity management, artificial intelligence, and CBDCs. Our goal is to position COTI as a pioneer for the upcoming wave of innovation and adoption in Web3. Airdrops Calendar .
What specific results or goals do you anticipate from participating in the Paris Blockchain Week?
Paris Blockchain Week is an outstanding event, and I plan to take part in a panel discussion along with other activities. It's all centered around fostering connections with current and prospective partners, building relationships, and forming collaborations.
We might even showcase elements of our developer network during the event.
How the COTI V2 Upgrade is Transforming Blockchain Dynamics and Ushering in a Privacy Revolution - Metaverse Post
Disclaimer
In line with the Trust Project guidelines In our insightful conversation, we delve into COTI's innovative stance on privacy, its seamless connection with Ethereum, the recent enhancements, and the strategic vision that is set to reshape the landscape of decentralized applications.