Enterprise-grade blockchain platform Coti is set to transition protocol to become a scalable, privacy-focused layer-2 on Ethereum in 2024.
An announcement shared with Cointelegraph outlines how Coti will shift from a standalone protocol to an Ethereum layer-2 to bring its privacy features to the broader ecosystem. Coti V2’s features a cryptographic approach called garbled circuits, which allows transactions to be processed without exposing sensitive information and data.
Drawing from the field of multi-party computation (MPC), garbling protocols enable two or more parties to jointly compute a function while keeping both their inputs and intermediate variables private.
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The technique was initially introduced in the 1980s and has become an essential function in privacy-preserving technologies. The technology’s primary advantage is preserving individual input privacy while allowing for multi-party computation.
Garbling protocols are useful in situations that require confidential data to be included in a computation without revealing the information itself. Coti CEO Shahaf Bar-Geffen explains how the protocol prevents sensitive data from being broadcast to competitors, partners and clients transacting on its chain:
Bar-Geffen adds that garbling protocols offer a unique approach in the context of Coti V2 by enabling transactions and smart contract executions where the details remain private between the involved parties:
The CEO said that Coti will primarily focus on powering enterprise functions on a blockchain network in complete privacy. He claims that other platforms that focus on anonymity as a means to provide privacy tread the line in terms of regulatory oversight and are not necessarily effective at providing a compliant base for the wider ecosystem.
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Coti envisions its protocol catering to use cases requiring advanced privacy provisions in finance and healthcare. Its current protocol is aimed at enterprises and allows for managing blockchain-based products like custom branded tokens, wallets, website integrations and fiat on and off-ramps.
Coti V2 is scheduled for a developer net release in the second quarter of 2024. Coti currently provides digital infrastructure for Web3 applications at a layer 1 level. This includes tools for wallets, tokens and payment modules. Its current layer 1 protocol has $31 million total value locked.
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