What is COTI (COTI)?

Deep Dive

1. Privacy Technology & Architecture

COTI V2 operates as an Ethereum Layer 2, leveraging Garbled Circuits—a cryptographic protocol that encrypts transaction data during processing. Unlike hardware-dependent solutions (e.g., TEE) or slower zero-knowledge proofs, this method processes transactions off-chain for speed (1,000x faster than ZK) and settles them on Ethereum for security. This enables programmable privacy, allowing selective disclosure for audits while keeping details like amounts or identities confidential.

2. Use Cases & Ecosystem

COTI targets sectors requiring compliance and privacy:
- Confidential DeFi: Private stablecoins (e.g., Djed) and encrypted trading on platforms like PriveX.
- Tokenized Assets: Partners with the Tokenized Asset Coalition to bring real-world assets (RWAs) on-chain.
- Enterprise Solutions: CBDCs, healthcare data, and supply chain tracking with audit-friendly privacy.

Developers can build privacy-preserving dApps via COTI’s MultiDAG framework, which supports multiple token ecosystems (stablecoins, enterprise tokens) simultaneously.

3. Tokenomics & Governance

The COTI token ($COTI) fuels network operations:
- Transaction Fees: Paid in COTI for using privacy features.
- Staking & Rewards: Node operators earn tokens for validating transactions; users earn Token Points (TPs) via COTI Earn for holding assets or referrals.
- Governance: Token holders vote on protocol upgrades and treasury allocations.

Conclusion

COTI positions itself as the privacy backbone for Web3, balancing speed, compliance, and cross-chain interoperability. Its focus on encrypted computation and institutional-grade solutions could bridge the gap between public blockchains and regulated industries.

How will COTI’s privacy-first approach influence the adoption of decentralized AI and RWAs in a transparent blockchain world?