How can blockchain support confidential transactions while meeting regulatory demands? COTI launches its mainnet as a scalable Layer 2 to support confidential operations in Web3.
COTI announces the launch of its mainnet after more than two years of research and development. The network operates as a Layer 2 solution for confidential transactions and aims to serve as a bridge between privacy and compliance in the digital ecosystem. The platform utilizes an implementation of Garbled Circuits developed in collaboration with Soda Labs. This system is designed to offer significant speed improvements over existing solutions while providing a Privacy-on-Demand service across multiple blockchain networks.
Addressing the Privacy Gap in Web3
The absence of viable privacy layers has limited institutional participation in areas such as Real World Assets (RWAs). This gap has prevented many institutions from protecting sensitive data and meeting compliance requirements. COTI’s new mainnet is designed to enable businesses to secure proprietary data and allow individuals to access Web3 services without disclosing personal information. The system also supports AI agents to operate as independent entities, ensuring that both data privacy and operational compliance are maintained across various use cases.
Technical Framework and Ecosystem Integration
COTI’s mainnet employs a Layer 2 architecture that records transactions on-chain while supporting high-speed processing. The use of Garbled Circuits enhances the speed of confidential transactions by up to 3,000 times compared to traditional methods. The network is structured to support Privacy-on-Demand, providing confidentiality while meeting compliance standards.
A range of ecosystem partners has already integrated COTI’s privacy layer. Partners include Bancor with its Carbon DeFi platform, Band Protocol, MyEtherWallet (MEW), and PriveX. In addition, COTI is extending its operations to government entities and CBDC initiatives, including a pilot project with the Bank of Israel involving the Digital Shekel. Further expansion announcements are expected in the near future.
Transition and User Incentives
To support the mainnet launch, the COTI Foundation will distribute 100 $COTI tokens to tens of thousands of wallets. Users who add COTI’s Layer 2 network to MetaMask will be eligible for a token claim. The release also includes a new Explorer and Bridge to facilitate the upgrade from COTI V1 to V2, ensuring a smooth transition for current users.
Final Thoughts
The launch of COTI’s mainnet signals a shift in how confidential transactions are managed in Web3. By providing a scalable and compliant solution, COTI positions its network as an enabler of secure and private blockchain operations. The move may pave the way for increased adoption in sectors that require both confidentiality and adherence to regulatory standards, potentially reshaping the landscape for digital financial services.
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