COTI announced the ETH L2 Developer Network to leverage $100 million in funding targeting key use cases such as confidential DeFi and encrypted data management.
The COTI Foundation has announced the upcoming ETH Layer 2 (L2) Developer Network, taking a major leap forward in its efforts to enhance privacy and scalability in the blockchain space. This initiative aims to foster innovation and growth within the COTI ecosystem by disbursing approximately $100 million in development funds in COTI tokens.
The blockchain industry, known for creating borderless finance and trustless interactions, has often grappled with privacy issues. The transparency inherent in Web3 was a double-edged sword. While it has been great for democratizing organizations, privacy concerns have hindered many other applications.
COTI V2 is poised to solve these challenges with Garbled Circuits, a pioneering privacy solution that is 1000x faster, 250x lighter than existing technologies and can work on any device. This innovation provides significant advantages over ZK-based solutions, which are typically limited to bilateral transactions, by supporting secure multi-party transactions, which are critical to both Web3 and traditional Web2 industries.
The COTI Foundation aims to accelerate the growth of the ecosystem, starting with the Developer Network (Devnet), which is scheduled to launch early in the second quarter of this year. COTI V2 Devnet, combined with the upcoming grant program, will reward developers for their contributions to the ecosystem by helping them build and improve their technologies. Developers will become familiar with using Solidity for smart contracts, allowing them to integrate privacy into existing applications or innovate entirely new use cases.
Key target use cases for the COTI V2 platform include:
Confidential DeFi: To address privacy violations in DeFi, COTI V2 supports new native features such as private AMMs, dark pools, and undercollateralized lending, which depend on user privacy and transaction content confidentiality. Additionally, COTI V2’s technology is set to solve the ongoing problem of Miner Extractable Value (MEV) exploits in Ethereum DeFi by encrypting transactions and blocking front-running bots.
Confidential Transactions: In the areas of payments, stablecoins and real-world assets (RWA), COTI V2 provides a solution that maintains confidentiality similar to traditional financial systems. This will enable mainstream adoption of Web3 by ensuring secure transactions that comply with regulatory standards.
Confidential Machine Learning (GCML): The platform’s encrypted on-chain data storage and confidential query capabilities bring a game-changing change in the management of sensitive data such as medical records. We also introduce GCML for Large-Scale Language Models (LLM), such as ChatGPT, to facilitate service enhancement without violating privacy or intellectual property rights.
Dynamic Decentralized Identification (DID): COTI V2’s DID system allows personal information to be used and verified without revealing the actual data. It supports trustless global interactions within a regulated framework without sacrificing sensitive information.
As the blockchain industry evolves, COTI’s innovative approach using Garbled Circuits technology, which aims to address the privacy limitations of Web3 and provide a superior solution for use in Web2, is timely. The upcoming COTI V2 Devnet represents a promising opportunity for developers around the world to contribute to this advancement.
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