TL;DR

• COTI launches Crypto Inheritance Protocol (CIP) on its V2 mainnet
• CIP enables users to securely and privately pass on crypto assets
• No need for third-party involvement or legal intermediaries
• Designed with privacy, compliance, and automation in mind
• First-of-its-kind privacy-preserving inheritance protocol
• Available now for COTI V2 users

COTI has officially launched the Crypto Inheritance Protocol (CIP) on its privacy-centric Layer 2 infrastructure, ushering in a new way to pass on digital assets securely and confidentially. In a landscape where self-custody is king, the CIP brings an answer to one of crypto's most common anxieties: what happens if something happens to me?

The CIP aims to solve that question without compromising on decentralization or privacy. As crypto matures, the need for inheritance mechanisms has become more pressing. Unlike traditional systems that rely on lawyers, notaries, or custodians, CIP uses smart contracts and confidential computing to automate and encrypt the entire process.

How CIP Works

At its core, the Crypto Inheritance Protocol allows users to set predefined rules and designate heirs who will automatically receive crypto assets in the event of prolonged account inactivity. If a user fails to log in or interact with their wallet for a specific amount of time, CIP initiates a secure transfer to their chosen recipient(s).

Here's a simplified breakdown of the process:

1. A user creates an inheritance plan through the CIP interface
2. They define the assets, beneficiaries, and inactivity period
3. If the user becomes inactive beyond that threshold, CIP automatically executes the inheritance

This process is entirely self-custodial and uses COTI's privacy stack to ensure no one can snoop on who inherits what, or how much. Even COTI itself doesn't know-the protocol uses cryptographic techniques like Garbled Circuits to keep the data private.

Why It Matters

The problem of inheritance has plagued crypto from the start. Countless stories exist of users dying or losing access to wallets with no recovery path. Traditional estate planning doesn't always integrate well with Web3, especially with privacy coins or Layer 2 assets that aim to avoid centralized oversight.

CIP changes the game by:

• Giving users peace of mind
• Ensuring families or chosen heirs can access assets
• Avoiding KYC-heavy or custodial recovery solutions

It bridges an essential gap between personal sovereignty and long-term security.

Privacy by Design

A standout feature of CIP is its privacy-first architecture. Built on COTI V2's confidential Layer 2, the protocol ensures:

1. No publicly visible data about beneficiaries
2. No centralized party has access to inheritance plans
3. Automated execution without revealing triggers

This is made possible by COTI's use of Garbled Circuits-a cryptographic method that allows computation on encrypted data without ever revealing it. As a result, even the act of inheritance remains confidential.

What the Community is Saying

The crypto community welcomed CIP’s launch as a practical leap forward. Users called it a "big milestone" and praised the protocol’s clean interface and live functionality. One user noted :

This kind of community testing and open feedback loop will be crucial as CIP scales and adds features. Notably, Vladyslav Ovadenko , COTI’s lead for the Ambassador Program, shared his support on X:

Many long-term XRP and COTI holders also emphasized that this kind of utility-backed innovation is what keeps them grounded, especially during uncertain market sentiment. CIP appears to be a welcome relief-a new tool that fits into the bigger picture of self-custody and intergenerational wealth. 

How to Use It

CIP is already live on the COTI V2 mainnet. Users can access the interface, set up their inheritance rules, and rest easy knowing their assets have a future plan.

To begin, you:

1. Connect your wallet to the COTI V2 mainnet
2. Navigate to the CIP dashboard
3. Define your asset, heir(s), and timeout period
4. Save and secure your configuration

It's that simple. And because it's smart-contract driven, there's no monthly fee or trusted party involved.

Broader Implications for Web3

As DeFi, NFTs, and on-chain identity continue to grow, inheritance becomes more complex. Who gets the rights to a wallet holding yield-bearing tokens or domain names? CIP provides a programmable solution to a human problem. It also strengthens COTI's identity as more than a privacy chain-it's a chain solving real user pain points.

Expect other ecosystems to take notes. This could be a catalyst for similar features across Ethereum, Solana, and other L2s.

Closing Thought

Crypto is about more than today. It's about building systems that last, even beyond us. With the launch of CIP, COTI is offering a way to extend digital sovereignty across generations. It's not just a tool for inheritance-it's a statement that privacy and permanence can coexist in Web3.