Crypto Quill

COTI, a blockchain development firm, has announced a major shift in its technology and vision, moving from Directed Acyclic Graph (DAG) to Ethereum Layer 2. This change aims to position COTI as a leader in scalable and secure privacy within the Ethereum ecosystem. To support this vision, the COTI Foundation has launched a $25 million Ecosystem Growth Fund, which will fund projects and initiatives that enhance the COTI V2 ecosystem.

What is COTI V2 and why is it important?

COTI V2 is a privacy-focused version of Ethereum Layer 2, which leverages innovative cryptographic protocols such as Garbling Circuits and Multi-Party Computation (MPC). These protocols enable COTI V2 to offer a faster, lighter, and more secure privacy solution than existing solutions, such as zero-knowledge proofs or trusted execution environments. COTI V2 can support a wide range of applications, such as privacy-preserving wallets, decentralized exchanges, private AI training, governance, and more.

Privacy is a crucial aspect of the Web3 vision, which aims to create a decentralized, open, and fair internet. However, privacy is often compromised by the transparency and traceability of public blockchains, such as Ethereum. Moreover, privacy solutions are often complex, expensive, and inefficient, limiting their adoption and scalability. COTI V2 addresses these challenges by providing a simple, affordable, and efficient privacy solution that can integrate with Ethereum and other blockchains.

How does the Ecosystem Growth Fund work?

The Ecosystem Growth Fund is a strategic initiative by the COTI Foundation to foster the development and adoption of COTI V2. The fund has allocated 400 million COTI tokens, valued at $25 million, to support developers, partners, and grants programs that contribute to the COTI V2 ecosystem. The fund will also facilitate research and innovation in the field of privacy and cryptography, in collaboration with leading experts and institutions.

The first beneficiary of the fund is Soda Labs, a promising player in cryptographic MPC, whose technology and partnership with COTI are central to COTI V2’s infrastructure. Soda Labs will spearhead research efforts to expand practical applications for garbling protocols and other cutting-edge MPC protocols, ensuring a secure and scalable privacy network for COTI users. Soda Labs was founded by Dr. Avishay Yanai and Dr. Meital Levy, both prominent figures in the cryptographic MPC domain.

Shahaf Bar-Geffen, the CEO of COTI, said: “The COTI Ecosystem Growth Fund represents a monumental step forward in COTI’s evolution to a privacy-centric Ethereum L2. The creation of this fund is integral in driving both the adoption of COTI V2 and the development of applications within the ecosystem”.

What are the next steps for COTI V2?

COTI V2 is expected to launch its Developer Network in Q2 2024, followed by its mainnet launch. The Developer Network will allow developers to access the COTI V2 platform and tools, and to create and deploy their own privacy applications. The mainnet launch will mark the official launch of COTI V2 as a fully functional and interoperable privacy solution for Ethereum and other blockchains.

COTI V2 also plans to announce more partnerships and activities in the coming months, as well as to launch a developer grant program. COTI V2 aims to create a vibrant and diverse community of developers, users, and supporters, who share the vision of a more private and decentralized Web3.