COTI is a project that positions itself as a Layer-2 privacy solution on Ethereum through a major update called COTI V2. Initially known through 'Trustchain', COTI has now evolved into infrastructure focused on transaction privacy and computing in the blockchain world.
Unlike most other Layer 2 networks, COTI uses **garbled circuits** cryptographic technology that allows for encrypted data processing without disclosing the original data content. This paves the way for a more secure Web3 ecosystem, particularly in the DeFi and digital payment sectors.
The **COTI** token itself serves as the main fuel for the ecosystem: used for transaction fees, staking in the Treasury, and network governance. With a dynamic inflation model (starting at 12% and decreasing below 2% over 10 years), this token is expected to create a balance between stability and growth of the ecosystem.
Simply put, COTI can be likened to a “VPN for blockchain” keeping user data private, yet still usable for complex computing and transaction needs.
However, as the privacy sector and Layer-2 become increasingly competitive, real adoption and the performance of COTI V2 technology will be key to its future success.
Will COTI V2 be the main foundation for privacy on Ethereum, or just another ambitious project in the Layer-2 world? Time will tell. 🚀
