What is COTI (COTI)?

Deep Dive

1. Purpose & Value Proposition

COTI aims to solve the critical privacy-compliance dilemma for blockchain adoption. While public ledgers offer transparency, they expose sensitive data, creating a barrier for institutions and enterprises. COTI’s core proposition is programmable privacy – it allows developers to build applications where data is private by default but can be selectively revealed for audits or regulatory compliance (COTI Foundation). This shifts the narrative from secrecy to managed confidentiality, which is essential for scaling real-world assets and DeFi.

2. Technology & Architecture

At its heart is Garbled Circuits (GC), a cryptographic technique that keeps data encrypted during processing. COTI claims this method is 3,000 times faster and 250 times lighter than traditional zero-knowledge proofs (Crypto.news). The network is an EVM-compatible Layer 2 built on Ethereum, meaning developers can use familiar tools while benefiting from its privacy stack. Transactions are computed off-chain for speed and privacy, with finality secured on Ethereum.

3. Ecosystem & Key Applications

COTI’s infrastructure supports a growing ecosystem focused on confidential use cases. Its Privacy-on-Demand model allows other chains to plug into its privacy layer. Key applications include private decentralized exchanges (like PriveX), confidential stablecoins, and pioneering private real-world asset (RWA) tokenization in partnership with coalitions like the Tokenized Asset Coalition (U.Today). It also collaborates with central banks, having been selected as a partner for the European Central Bank's digital euro initiative.

Conclusion

Fundamentally, COTI is building the essential, compliant privacy layer required to bridge traditional finance with Web3, enabling everything from private AI agents to institutional-grade DeFi. As the demand for confidential on-chain activity grows, how will COTI's balance of speed, compliance, and developer accessibility shape the next wave of blockchain adoption?