COTI Network Joins Tokenized Asset Coalition and Unveils COTI V2
The COTI Network is gaining significant attention following its recent inclusion in the Tokenized Asset Coalition (TAC). The network introduced COTI V2, an Ethereum-compatible Layer 2 solution designed to enhance privacy for decentralized applications (dApps), conduct confidential transactions, implement machine learning, and facilitate decentralized identification. Central to COTI V2’s technology is the use of garbled circuits, which bolster privacy and enable secure multi-party computations. In light of these developments, we spoke with Joshua Maddox, Chief Ecosystem and Partnerships Officer at COTI, to discuss the critical role of blockchain privacy and the company’s contributions to the field.
Introduction to COTI and Joshua Maddox’s Role
My name is Joshua Maddox, and I have extensive experience in marketing, strategy, and software engineering. My dual interest in marketing and engineering has led me to focus on ecosystems. Currently, I lead the Asia-Pacific and Middle East & North Africa regions for the Tokenized Asset Coalition, serve as an Advisor to the Provenance Blockchain Foundation, and hold the position of Chief Ecosystem & Partnerships Officer at COTI. My work revolves around advancing tokenization, compliant privacy, and regulated financial services. I have managed grant programs exceeding $100 million across the Ethereum and Cosmos ecosystems and secured over $10 million in funding for various projects. With my background in developer relations and marketing, I have partnered with notable organizations such as JP Morgan, Unilever, and IBM. At COTI, our mission is to establish privacy as a fundamental aspect of web3, providing compliant privacy solutions with unprecedented speed and cost efficiency on public blockchains. By leveraging garbled circuits, we allow users to control access to specific data slices while maintaining data encryption.
Addressing Security Concerns with Blockchain Technology
The significance of privacy is often underestimated until individuals face situations that compel them to prioritize it, such as data breaches. Blockchain technology, coupled with robust privacy infrastructure, offers a means to empower developers and users with privacy features before they realize their necessity. The true value lies in decentralizing sensitive data, thereby reducing the risk of single points of failure that can lead to data leaks. While blockchain alone may not resolve all issues, it provides a new toolkit that effectively addresses fundamental concerns regarding data privacy. The growing interest in privacy solutions, both within and outside the web3 ecosystem, underscores its importance in today’s digital landscape.
Zama’s Recent Funding and Implications for Privacy Solutions
Zama’s recent $57 million Series B funding round, which pushed its valuation past $1 billion, underscores the increasing significance of privacy technologies in the cryptocurrency sector. This investment reflects a shift in investor confidence towards privacy tech, which is transitioning from experimental phases to enterprise-ready solutions, particularly those enabling computations on encrypted data. The burgeoning recognition of privacy as essential for mass adoption is evident, especially as cyber threats evolve. As the industry anticipates substantial growth in stablecoins by 2025, 2026 may herald the mainstream acceptance of privacy solutions, particularly within stablecoin development. COTI stands at the forefront of this movement, having launched its Garbled Circuits technology on the mainnet, and is actively integrating its solutions into real-world applications.
Vitalik Buterin’s Perspective on Privacy Technology
Vitalik Buterin, the founder of Ethereum, recently articulated the fundamental role of privacy technology in blockchain systems. His views resonate with COTI’s philosophy, emphasizing that concentrated information equates to concentrated power. Without privacy measures, blockchains could devolve into tools of surveillance rather than instruments of liberation. This perspective aligns with our commitment to privacy-preserving technologies that empower developers and users to retain control over their data while engaging with regulatory bodies and the broader web3 ecosystem.
Factors Driving the Shift Towards Mainstream Privacy Infrastructure
Privacy has long been an underlying concern, but many do not recognize its importance until faced with a crisis. The current shift towards privacy solutions, akin to a “privacy summer” as we approach 2026, is largely driven by global instability. Citizens increasingly perceive that governments and large institutions are failing to protect their rights and data. By decentralizing data control, privacy technology empowers individuals and restores power, a realization that is likely to intensify as high-profile data breaches and global conflicts continue to emerge. COTI plays a crucial role in democratizing private digital finance, equipping developers and institutions with compliant privacy solutions that are both efficient and accessible, allowing for the creation of products that adhere to local regulations.
COTI’s Live Technology and Core Innovations
COTI’s technology is already operational, with various builders utilizing its capabilities. Garbled Circuits are particularly advantageous due to their exceptional speed and efficiency. Recent benchmarks demonstrated that our technology is 3,000 times faster and 250 times lighter than the nearest competitor. This capability enables compliant privacy solutions at unprecedented speed and cost, allowing developers to grant specific data access rights to different users within a transaction. Each participant can only access the data pertinent to them while operations can be performed on encrypted data. Additionally, our Privacy on Demand feature allows developers to incorporate COTI’s privacy solutions into existing applications on other blockchains, enhancing flexibility and usability.
Balancing User Protection and Regulatory Compliance
COTI’s compliant privacy model facilitates user-specific access to data, allowing granular control over who can view or operate on certain data slices while maintaining encryption. This framework empowers developers to create user experiences that prioritize data protection while adhering to regulatory requirements. By enabling developers and users to collaboratively determine data privacy levels, we ensure compliance with jurisdiction-specific laws while safeguarding sensitive information.
Enhancing Blockchain and Off-Chain Systems with Privacy Infrastructure
COTI’s Privacy-on-Demand features have the potential to enhance virtually any blockchain by integrating garbled circuits. For off-chain systems, the focus lies in identifying where intermediaries are currently necessary. Blockchain technology excels at replacing trust with verifiable truth, eliminating the need for reliance on third parties. By incorporating COTI’s solutions, off-chain systems can transition to decentralized, compliance-ready frameworks, opening up new possibilities across various sectors, including finance and supply chain management.
Distinct Features of COTI’s Privacy Technology
While zero-knowledge proofs (ZK) and fully homomorphic encryption (FHE) have been pivotal in advancing privacy solutions, COTI’s garbled circuits offer a unique blend of both technologies with superior speed and cost efficiency. Our benchmarks reveal that COTI’s solutions are significantly faster and lighter than traditional privacy methods. Although ZK proofs are effective for verification, they are binary in nature, and FHE, while allowing computations on encrypted data, is often cumbersome and costly. Garbled Circuits enhance both functionalities, enabling the generation of proofs and computations on encrypted data efficiently, making them suitable for a wide range of applications.
The Importance of Privacy in the Age of AI
Privacy plays a critical role in the context of AI, especially as AI agents gain capabilities to act on our behalf. The implications of these technologies raise significant security and data risks. By ensuring data privacy and allowing computations on encrypted information, we can facilitate a secure environment for AI agents to interact with sensitive data while maintaining compliance and transparency. This balance is essential for the interoperability and collaboration of AI systems across diverse domains. As AI capabilities evolve, the significance of privacy is expected to increase.
The Future of Privacy Technologies in Blockchain
I do not foresee a single dominant privacy technology emerging within the blockchain industry. Typically, technology sectors exhibit a few leading players alongside a plethora of innovators pushing for advancements. The blockchain privacy landscape will likely evolve similarly, with various technologies, such as ZK and FHE, serving essential roles. COTI’s garbled circuits position the company to lead among top-tier privacy solutions as the industry matures. A thriving ecosystem benefits from multiple implementations, fostering experimentation and diversity as part of its growth.
Enhancing Tokenization and AI with Privacy Features
In the realm of tokenization and real-world assets, privacy is a critical component for scalability. As these assets transition to public blockchains, stringent compliance and reporting requirements must be met. COTI’s technology has already demonstrated its ability to facilitate this process, as evidenced by the rising interest from real-world asset projects. The narrative surrounding privacy will be integral to the future of blockchain transactions. As we approach mass adoption, the interplay between privacy and real-world assets will become increasingly significant in driving blockchain growth.
