Web3 digital infrastructure provider COTI announced plans to launch a layer-2 chain on the Ethereum network that will be focused on adding a privacy layer to its products and services.
According to a statement seen by CryptoPotato, the new protocol, COTI V2, will use a cryptographic technology called Garbled Circuits to enhance privacy while ensuring high speed and scalability.
COTI Unveils Privacy L2 Network
COTI claims Garbled Circuits is ten times more efficient than the Zero-Knowledge protocol, a method used by several layer-2 blockchains on the Ethereum network. COTI’s new protocol will utilize Ethereum’s pre-existing liquidity and security while implementing robust privacy protection for the ecosystem.
The launch of COTI’s new protocol is driven by the lack of privacy and confidentiality on all layers of the public blockchain. The digital infrastructure provider believes the current state of the blockchain ecosystem gives malicious actors enough room to operate and that only strong privacy-centric architecture can protect the Web3 community.
Besides ensuring privacy protection, COTI intends to focus on building areas that are “woefully lacking” in Web3. The protocol’s first challenge would be resolving users’ ability to use the blockchain in complete privacy. COTI V2 will implement cryptography, enabling users to execute transactions without exposing their payment histories, wallet values/addresses, or other sensitive information.
Developing a Complaint Ecosystem
COTI believes that focusing on anonymity to create privacy causes regulatory issues, which is ineffective in developing a complaint ecosystem. The new protocol will ensure transparency while protecting information that could harm users and the growth of web3.
Shahaf Bar-Geffen, CEO of COTI, said: “Sensitive data transmitted as public information on a blockchain is a bug, not a feature. This isn’t tolerated in legacy business systems, so why should it be tolerated on-chain? COTI V2 will solve for this, preventing sensitive data from being broadcast to competitors, partners, and clients.”
The digital infrastructure firm has scheduled the COTI V2 devnet release for the second quarter of 2024, after which the testnet and mainnet launch will follow. The company expects the launch to unlock countless new use cases in the industry and, in turn, trigger an immediate surge in web3 development.
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