What is COTI (COTI)?

By CMC AI
24 September 2025 10:05AM (UTC+0)

TLDR

COTI is an Ethereum-based privacy protocol leveraging advanced cryptography to enable confidential transactions and data protection for Web3 applications.

  1. Privacy-first infrastructure – Uses Garbled Circuits for encrypted, compliant transactions.

  2. EVM-compatible Layer 2 – Balances speed with Ethereum’s security for DeFi, AI, and enterprise use cases.

  3. Real-world adoption – Powers private stablecoins (DJED) and tokenized assets via institutional partnerships.

Deep Dive

1. Privacy Technology & Architecture

COTI’s core innovation is Garbled Circuits (CoinMarketCap), a cryptographic method that encrypts transaction data during processing. Unlike zero-knowledge proofs (ZKPs), this approach is designed to be 3,000x faster and 250x lighter, enabling scalable privacy without compromising Ethereum’s security. Transactions execute off-chain for speed, then settle on Ethereum’s Layer 1.

2. Ecosystem & Use Cases

COTI serves as a privacy layer for decentralized applications (dApps), supporting:
- Confidential DeFi: Private stablecoins (e.g., DJED) and trading.
- Enterprise solutions: Tokenized real-world assets (RWAs) with audit-friendly transparency.
- AI/data privacy: Secure machine learning via encrypted computations.
Recent collaborations with the Tokenized Asset Coalition (TAC) highlight its role in institutional blockchain adoption.

3. Token Utility & Governance

The $COTI token facilitates:
- Network fees: Payments for private transactions.
- Staking: Securing the Treasury system, which rewards participants as the ecosystem grows.
- Governance: Decentralized decision-making for protocol upgrades.

Conclusion

COTI positions itself as Web3’s privacy backbone, combining regulatory compliance with cutting-edge cryptography. Its focus on enterprise-ready confidentiality—seen in partnerships like DJED’s private stablecoin—suggests a strategic push toward bridging TradFi and DeFi. Can COTI’s speed and compliance make it the default privacy solution for institutions adopting blockchain?

CMC AI can make mistakes. Not financial advice.