COTI V2 is already live as a layer 2 on Ethereum but it wasn’t always. This marks one of the most significant shifts in the protocol’s history .
Originally, COTI launched as a Layer 1 blockchain called Trustchain, designed for high-speed payments and decentralized finance. However, with the introduction of COTI V2, the project has repositioned itself as a confidential computing Layer 2 built on Ethereum. The goal: bring scalable, privacy-preserving computation to one of the largest blockchain ecosystems in the world.
Unlike standard Layer 2s that focus on speed or cost efficiency, COTI V2 is centered around confidentiality. It uses garbled circuits, a cryptographic method that allows computations on encrypted data meaning data can be processed without ever revealing it. This is particularly powerful for use cases like private DeFi strategies, institutional asset handling, or any application where data privacy is critical.
By choosing Ethereum as its base layer, COTI benefits from its security, liquidity, and massive developer base while layering on a new kind of privacy infrastructure. This aligns COTI with a growing narrative in Web3: that the future of finance must not only be decentralized, but also confidential. So while earlier COTI versions were not Ethereum-based, the protocol’s present and future are fully aligned with Ethereum’s L2 roadmap.
COTI Ecosystem Insight
Building on Ethereum gives COTI access to broader DeFi integrations while helping Ethereum itself evolve toward privacy-first applications. COTI isn’t just built on Ethereum, it’s helping shape what Ethereum becomes.
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