COTI is one of the oldest projects in the crypto space, and we had the chance to speak with its CEO, Shahaf Bar-Geffen.
The team is on the cusp of major developments, with the current focus being on version 2 of the protocol, which is focused on providing a privacy-focused second-layer solution to Ethereum.
With bold plans to launch its mainnet by the end of 2024, Bar-Geffen also talks about the reasons behind the decision to go this route, the key challenges the industry faces, and how COTI plans to address them.
COTI’s main focus
In our latest podcast episode, Shahf Bar-Geffen explained more about recent progress of the project, and also provided important clarifications regarding its roadmap for the near future.
At the beginning, he said that the team is currently focused on launching COTI V2 – privacy-focused layer 2 Ethereum blockchain. But why privacy?
Bar-Geffen identifies the root of the current problems facing blockchain-based technology in general, as well as the Internet itself.
“The best outcome of the Internet, and again, this is not just about blockchain and communication networks, is going to be a decentralized network that can keep secrets and keep your data private.
So, this is it exactly what we’re doing with COTI right now. We’re doing it on top of the existing network, so we’re starting very strong in terms of liquidity, and we’re doing it in Very “a unique technology that no one has ever used.”
And here’s where it’s important to clarify some important points. In light of recent events, where institutions around the world are tightening their grip on anonymity, we asked Bar-Geffen what’s different about COTI V2.
He explained that the team is working on a feature known as “selective disclosure,” where the main principle is “privacy over anonymity.” With this, users can decide whether they want to reveal their transaction data and to whom. Speaking out against Monero, the COTI CEO explained that the method is very different.
He explained that transactions can be kept private for as long as users want them to be, but regulators can still audit them if there are doubts about their nature.
According to him, this is fundamentally different from completely anonymous solutions, with the help of which attackers can transfer funds and carry out various illegal activities, such as money laundering.
What technology stack underlies COTI V2?
COTI is the first blockchain project to implement warped chain technology.
Essentially, skewed schemes provide on-chain privacy with computation speeds up to 1000 times faster than other encryption systems, such as fully holomorphic encryption (FHE).
Bar-Geffen explained that its original purpose and structure “were not particularly useful for solving the blockchain privacy problem due to performance issues.” But that has changed.
A group of researchers from Soda Labs came in and we helped them fund some practical research into how this could be applied to the blockchain. And they did it.
But that’s not all: Garbled Circuit technology can also handle transactions that involve private state shared by multiple parties, potentially making it superior to ZK-based solutions.
According to the previous press release:
It is also immune to the single point of failure weaknesses that have been identified in TEE solutions. The result is an on-chain privacy solution that is scalable and more secure than alternative solutions.”
Roadmap for the next months
Shahaf Bar-Geffen recalled What Earlier this year, COTI unveiled the V2 network concept, followed by distorted patterns in the blockchain.
He explained that the Developer Network had also recently gone live and already had over 400 smart contracts built on it. The network uses GC EVM technology (from Garbled Circuits), which is an extension of the EVM, allowing developers to code in Solidity with a few new parameters.
Essentially, developers can write smart contracts in Solidity but still define what data should be kept private.
Moreover, COTI recently completed a testnet that is set to be deployed in the next few months and should pave the way for the mainnet launch later this year.
“It should be pretty stable and will take us to mainnet in Q4 of this year. So the idea is to have a mainnet that is a privacy-focused Ethereum layer-2.”
The executive added that COTI’s key focus in the coming months will be simplifying KYC procedures, focusing on AI-related initiatives, and building DeFi solutions.
To learn more about what else COTI is working on, as well as the ABC Growth Fund, listen to the podcast above.
