AN OVERVIEW OF COTI

COTI is a Layer 2 protocol pioneering programmable privacy for Web3. Built on top of Ethereum and powered by Garbled Circuits, COTI V2 enables confidential smart contract execution at speeds and costs optimized for real-world enterprise, DeFi, RWAs and other use cases. In this article, we’ll explore what COTI is today, how it works, and how it’s shaping the next wave of private, scalable, and compliant blockchain infrastructure.

TL;DR

• COTI is an Ethereum Layer 2 focused on privacy, using a technology called Garbled Circuits for ultra-fast confidential computation.
  
  
• Its programmable privacy model supports EVM compatibility, allowing developers to build private apps using existing Solidity tools.
  
  
• COTI is the fastest, lightest privacy layer in the market, opening up new use cases in DeFi, AI, RWAs, and Identity.
  
  
• COTI is also the issuer of Djed, the overcollateralized stablecoin built in collaboration with Cardano.

What Is COTI?

In response to evolving market demands for scalability, privacy, and regulatory alignment, COTI launched as a Layer 2 Ethereum rollup in 2023, with its new architecture, COTI V2, built around Garbled Circuits. COTI launched on Mainnet in March 2025.

COTI is the first fully programmable privacy layer for Ethereum to hit the market. It combines confidential computation, zero-knowledge proofs, and enterprise-grade performance within one architecture. The network supports privacy-preserving DeFi, compliant financial applications, encrypted identity, and AI logic execution.

A Brief History of COTI

Founded in 2017 by Shahaf Bar-Geffen, COTI's turning point came in 2023 with the unveiling of COTI V2, its upgraded protocol focused entirely on programmable privacy. V2 embraced a rollup architecture for Ethereum, powered by Garbled Circuits, a cryptographic primitive enabling secure, private computation.

This transition aligned COTI with the modular blockchain trend, allowing it to specialize as the privacy layer for the broader EVM ecosystem.

How Does COTI V2 Work?

COTI’s architecture leverages Garbled Circuits, a cryptographic method for secure multiparty computation (MPC), to enable private smart contract execution. While traditional blockchains expose all transaction data publicly, COTI encrypts the inputs, logic, and outputs of contracts, keeping them hidden from everyone except the relevant participants.

COTI's key features:

• Confidential Smart Contracts: Built using Solidity, but executed privately.
  
  
• EVM-Compatible Rollup: Fully interoperable with Ethereum, tools like MetaMask, Hardhat, and Foundry.
  
  
• High Performance: Computations up to 3,000x faster than comparable ZK or TEEs, with 250x lower compute costs.
  
  
• No Specialized Hardware Required: Unlike TEEs or some ZK setups, COTI runs on commodity machines.

This makes COTI uniquely capable of supporting:

• DeFi protocols with encrypted logic (e.g. private AMMs, lending).
• Private coordination between DAOs or enterprises.
• AI agents operating confidentially on-chain.
• Use cases requiring GDPR-aligned data privacy.

COTI’s Token (COTI)

The COTI token remains the native asset of the ecosystem and is now primarily used to pay gas fees on the COTI L2, secure the protocol, and engage in governance.

COTI exists across:

• Ethereum (ERC-20)
• BNB Chain (BEP-20)
• COTI V2 Layer 2

Bridges between networks are provided via COTI’s official bridge, and tokens can be swapped through integrations with LetsExchange, Hyperlane, and other platforms.

COTI Products and Ecosystem

Beyond infrastructure, COTI continues to build and support multiple products:

Djed Stablecoin

Developed with Input Output Global (IOG) and backed by ADA, Djed is an overcollateralized algorithmic stablecoin deployed on Cardano. COTI handles the backend logic, operations, and issuance of Djed.

COTI Treasury

A smart contract-driven Treasury that allows users to deposit COTI tokens in return for periodic rewards, providing a dynamic and decentralized economic foundation for the protocol.

Stay COTI

An AI-powered developer hub that allows anyone to "vibe-code" applications, like creating a private token or smart contract, through natural language prompts.

COTI MetaMask Snap Integration

A MetaMask Snap that adds encrypted balance viewing and token support, enabling users to interact with COTI-based assets through familiar wallets.

Final Thoughts

COTI’s evolution reflects a broader shift in Web3: from transparency at all costs to privacy with control. By embracing a high-performance, EVM-compatible rollup architecture, COTI is now uniquely positioned to lead the programmable privacy revolution across DeFi, AI, payments, and more.

Its Garbled Circuits implementation offers real-world confidentiality without trade-offs in cost, speed, or usability, unlocking new levels of compliance, composability, and creativity for builders and enterprises alike.

If you're building in Web3 and need privacy that’s fast, flexible, and future-proof, COTI is worth exploring

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