March has been a jam-packed month full of exciting announcements, partnerships and updates. There’s a lot to catch up on, so we’re recapping all the latest news and updates in this COTI Roundup.

The COTI V2 Airdrop is Now LIVE!

Starting on March the 25th and continuing until the COTI V2 token generation event, the COTI V2 Airdrop Campaign will share a total of 40M $COTI V2 tokens (currently worth ~$8M) with holders of Native and ERC-20 $COTI tokens, on top of the regular Treasury APY!

In the last two days, nearly 5M additional $COTI were deposited to the Treasury, bringing TVL to around 516M COTI!

Join the campaign here: https://treasury.coti.io/ For the full details about the campaign, including how COTI V2 rewards are calculated and distributed, you can read the announcement here.

COTI V2’s Dynamic Decentralized Identity Explained and Exciting First Partner Revealed — Civic!

As we march towards the launch of COTI V2, we’ve started a series of deep dives into the brand-new use cases of COTI V2. In the first spotlight article, we explored how COTI V2s infrastructure will power an advanced version of a digital identity solution called Dynamic Decentralized Identity (DID).

The first launch partner to integrate Dynamic Decentralized Identity is Civic, a leading provider of identity management tools for web3. As announced yesterday, Civic will use COTI V2’s Garbling protocol solution for Dynamic decentralized identity. Through the integration, COTI V2’s Dynamic DIDs will empower dApps to interact with Civic’s digital identities and query complex insights without accessing sensitive data. This ensures full data protection and confidentiality for Civic users.

Civic prioritizes user protection, as seen in their recent introduction of a physical ID card for Civic Pass holders. This enables Civic Pass holders to prove their identity and minimize the threat of AI driven identity fraud. The partnership between Civic and COTI continues in this direction and represents a major step forward in protecting the digital footprint and credentials of users.

This is just the beginning of many planned collaborations for COTI V2!

How COTI V2 Benefits from Ethereum’s Dencun Upgrade

In one of our recent blogs, we covered how COTI V2 benefits from Ethereum’s Dencun upgrade.

With an increase in transactional data per block, the Dencun update provides a significant boost to transactional latency while also significantly reducing transaction fees at the same time. As an Ethereum L2, COTI V2’s design not only ensures smooth integration with upcoming Ethereum upgrades but also positions the protocol to actively contribute to the ongoing transformation of the Ethereum network, paving the way for new groundbreaking advancements and innovations. Read the full article here: https://medium.com/cotinetwork/how-coti-v2-benefits-from-the-ethereum-dencun-upgrade-bd6a6adcc2fc

COTI in the Spotlight

Recent news about COTI’s Airdrop Campaign and the partnership with Civic attracted a lot of media attention! Check out below some of the most noteworthy coverage from the past few days:

Empowering Digital Identity: COTI and Civic Forge a Groundbreaking Partnership | HackerNoon

COTI Taps Civic to Give Users Self-Sovereign Digital Identities

COTI Partners with Civic to Enhance Digital Identity Protection

COTI And Civic Partner to Give Users Full Self-sovereignty Over Their Digital Identity

COTI And Civic Partner to Give Users Full Self-sovereignty Over Their Digital Identity By Chainwire

COTI Launches $8 Million V2 Airdrop: Details

Guest Post by BlockchainReporter: COTI Unveils $10 Million V2 Airdrop Campaign to Reward Its Community | CoinMarketCap

Shahaf Bar-Geffen was interviewed by the MorningStar Venture team on X Spaces. In the interview, they discussed Web3 Privacy, including Garbled Circuits and its benefits. If you missed the interview, you can still listen to it here: https://twitter.com/i/spaces/1zqJVqNYDrwGB

Stay tuned for more updates.

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

COTI Roundup was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

We are excited to announce our partnership with Civic, a leading provider of identity management tools for web3, to use COTI V2’s Garbling protocol solution for Dynamic decentralized identity. Through the integration, COTI V2’s Dynamic DIDs will empower dApps to interact with Civic’s digital identities and query complex insights without accessing sensitive data. This ensures full data protection and confidentiality for Civic users.

As recently shared, one of the flagship use cases of COTI V2 will be the ability to manage an advanced version of a user’s decentralized identity (DID). Harnessing the privacy-preserving power of garbled circuits, COTI V2 will offer Dynamic DID, a powerful upgrade to the technology which allows for advanced features like confidential data sharing and complex calculations. COTI V2’s Dynamic DIDs leverage Civic Pass, which is both a verified credential and a non-transferable token in the user’s wallet. Civic Pass can serve as inputs to meet regulatory requirements like Anti-Money Laundering (AML) and Know Your Customer (KYC).

Shahaf Bar-Geffen, COTI CEO, said:

“We’re excited to integrate COTI V2s confidentiality layer into Civic’s platform. Civic is an industry leader in the field of identity management tools for Web3, and COTI will continue to partner with industry leaders. We look forward to working with Civic’s professional team to bring Dynamic DID into full production”.

We’re excited to have Civic on board and look forward to integrating it with COTI V2 across all phases: Devnet, Testnet, and Mainnet.

This partnership is just the beginning of many planned collaborations for COTI V2.

Stay tuned for more partnership announcements.

Stay COTI!

About Civic

Civic is a leading provider of identity management tools for web3, empowering people to easily and privately manage their identities across chains with an on-chain representation of their reusable identity. The company’s flagship product, Civic Pass, is an integrated permissioning tool that helps business customers enable secure access to their on-chain assets. Users may also manage their identity, presence and reputation with a dashboard. Civic aims to be the most trusted on-chain identity tool in the world, used by billions every day. Civic was co-founded in 2015 by Vinny Lingham and Jonathan Smith.

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

Announcing First Design Partner for COTI V2 Dynamic DID solution: Civic! was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

We’re pleased to announce that COTI’s biggest-ever token giveaway campaign has just begun!The COTI V2 Airdrop Campaign has 40M $COTI V2 tokens (currently worth ~$8M) up for grabs, so here’s a quick recap of all the details so you can get involved.

COTI V2 Airdrop Key Details

When? Now! The COTI V2 Airdrop Campaign went live today, March 25th, 2024, but you are free to join at any time! The campaign will continue until COTI V2’s TGE (Token Generation Event). Rewards distribution of COTI V2 tokens will start shortly after the COTI V2 TGE, planned for Q4 this year.

What? All Treasury participants are automatically eligible to receive a share of 40M $COTI V2 tokens, on top of their regular APY rewards. Currently worth around $8M, it’s our biggest giveaway yet!

Who? Open to $COTI holders, both Native and ERC-20. Plus, our loyal users who’ve made deposits before Feb 28th, 2024, get a special bonus, adding extra days to their reward calculations.

How? Simply by having a deposit in the Treasury, whether it’s been there a while or it’s brand new. Your share of the airdrop rewards is calculated based on duration (the longer you stay, the higher the rewards!), Treasury APY and activity.

Here’s how you can get involved:

New Deposits

If you are new to the COTI Treasury, all you have to do is go to Treasury.coti.io and enter the Treasury with your VIPER Wallet (for $COTI Native deposits) or your Metamask Wallet (for $COTI ERC20 deposits). If you don’t have a VIPER Wallet yet, you can follow the steps in this tutorial.

Just click ‘Enter Treasury’ or ‘Connect’ (in the top right corner) and choose your preferred Wallet. You can also navigate to the ‘Deposits’ tab and connect your wallet from there.

After successfully connecting with your wallet choose the address you want to make the deposit from and the amount you want to deposit.

Choose the deposit multiplier you want to apply to your deposit (x1 means no multiplier) and choose a Locking Period if you wish to lock your deposit.

On the right side of the screen, you’ll be able to see a preview of your deposit parameters. Click “New Deposit” to submit and you’re done!

APY Boost for $COTI ERC20 deposits will be enabled soon, as part of a broader gCOTI event.

Reward claiming for $COTI ERC20 and deposit top-up features will be available in the coming days.

Existing Deposits

If you already have an active deposit, whether it’s still locked under programs or not, no extra activities are needed to join. You don’t need to withdraw and redeposit again (withdrawing deposits resets seniority). Your deposit is valid according to the time it has already spent in the Treasury. You may choose whether or not to take additional actions such as extending your locking period.

For all the full details about the campaign, including how COTI V2 rewards are calculated and distributed, you can read our previous article here.

Stay tuned for more COTI V2 Airdrop updates throughout the campaign!

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

The COTI V2 Airdrop is Now Live! was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

COTI V2 introduces a comprehensive confidentiality solution, based on Garbled Circuits, unlocking a whole new world of use cases. After identifying what we believe are some of the most critical use cases, in this series of articles, we’ll explore each of these in-depth. This article focuses on how COTI V2 transforms digital identity solutions.

The evolution of digital identity has been a slow but steady one. From primitive username-password control to the advent of two-factor authentication and biometric security, we’ve seen a gradual yet reliable improvement in the sophistication, usability, and functionality of these emerging solutions.

The KYC Era

For the most part, this evolution has been driven by stringent Know Your Customer (KYC) regulations imposed on businesses wishing to trade online. While this may have helped to reduce fraud and money laundering, it requires each business to be the custodian of their customer’s personal identification documents and for users to perform KYC processes multiple times, one for each business they interact with. Evidently, other than being inefficient, the number of security breaches in recent history would suggest that many businesses are ill-equipped to safeguard their customer’s data against malicious theft.

Digital Identity and the ZK Era

Zero Knowledge (ZK) would aim to solve this with an entirely new paradigm: decentralized identity (DID). In this model, each user is in control of their own digital identity, providing access only to those who they deem trustworthy. Not only does this foster an empowered self-sovereignty over individual identity, it also lessens the impact of any potential data breach.

While ZK-powered decentralized identities have long been heralded as the solution for a number of identity and verification problems within Web3, they aren’t without their limitations, particularly in terms of calculations and data sharing. ZK is only useful when the sort of questions that are asked about the user data are known in advance and proofs are already made.

Dynamic Digital Identity and the COTI V2 Era

COTI V2 allows the evolution of Decentralized Identity to Dynamic Decentralized Identity (or DyDID in short). This innovative approach revolutionizes the way identity verification and personal information are managed within the blockchain ecosystem, enabling a host of advanced use cases.

As a lead promoter of the Dynamic DID paradigm, COTI V2, developed in collaboration with Soda Labs, empowers users with full control over their personal data while still enabling seamless compliance with regulatory frameworks like Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements. Enabling true self-sovereignty of their digital identity, users can securely store their sensitive information with third parties without having to physically disclose it. This pivotal shift not only enhances user privacy but also fosters a more secure and transparent environment for digital interactions.

One of the key features of Dynamic DID is the ability to facilitate data sharing and calculations without compromising the confidentiality of the underlying information. Through fine-grained access control mechanisms over encrypted data and decentralized storage mechanisms, Dynamic DIDs will enable dApps to interact with digital identities and query complex insights without accessing sensitive data. For example, through Dynamic DID, dApps can verify a user’s location, confirm they haven’t accessed malicious or banned services and provide a user experience based on their ever-evolving home country’s regulations — all together, without accessing personal details directly.

To be more specific, let’s envision a scenario where a company announces an airdrop with specific rules: participants must not be from restricted countries and must own at least one NFT to qualify for rewards. A user joins using his own account abstraction wallet, confirming that he is not from a restricted country. Later, he buys an NFT. When it’s time to distribute rewards, the company uses Dynamic DID to verify eligibility based on the criteria they set earlier. The user doesn’t need to provide extra data, unlike with ZK-based solutions; his encrypted information, including NFT ownership, is already stored and accessible for reward distribution through Dynamic DID.

The implications of Dynamic DID extend far beyond traditional blockchain applications. In the traditional financial systems of the world, confidentiality is mandatory for global parties to participate. In fact, many regulations exist solely to protect the private information of businesses and individuals.

By creating trustless environments where parties can interact globally while adhering to regulatory requirements, Dynamic DID opens the door to a myriad of possibilities for both Web2 and Web3 platforms. Whether it’s facilitating cross-border transactions, enabling secure identity verification for online services, or streamlining regulatory compliance processes, Dynamic DID paves the way for innovative solutions across various industries.

Dynamic DID built on COTI V2 infrastructure is poised to catalyze the emergence of new sub-industries focused on providing global services in a fully regulated and privacy-preserving manner. From decentralized finance platforms to digital identity solutions, the integration of Dynamic DID offers unparalleled opportunities for innovation and growth.

Excitingly, COTI has already secured its first strategic partner for Dynamic DID, marking a significant milestone in the journey towards widespread adoption. Keep an eye out for our forthcoming partnership announcement.

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

Revolutionizing Digital Identity Solutions with COTI V2 was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

COTI V2 Airdrop Campaign — All the Details

The COTI V2 Airdrop Campaign is right around the corner, and in this article we are going to share with you everything you need to know about it.

If you haven’t read the Airdrop announcement yet, go to: https://medium.com/@cotinetwork/the-coti-v2-airdrop-campaign-772a8dbc6c37

TL:DR

When: The COTI V2 Airdrop Campaign will start on March 25th, 2024. You can join any time! Distribution of COTI V2 tokens will commence shortly after the COTI V2 TGE, planned for Q4 this year.

What: All Treasury participants are automatically eligible to receive a share of 40M $COTI V2 tokens, atop their regular APY rewards. It’s our biggest giveaway yet!

Who: Open to $COTI holders, both Native and ERC-20. Plus, our loyal users who’ve made deposits prior to Feb 28th, 2024, get a special bonus, adding extra days to their reward calculations — as a token of our appreciation for their early support.

How: Simply by having a deposit in the Treasury, whether it’s been there a while or it’s brand new.

I’m New to the Treasury. Where Can I Learn More About It?

In this article, we covered everything you need to know about the COTI Treasury. You can also check our FAQ or ask any question in our Official Telegram and Discord channels.

How to Open a Deposit?

Treasury deposits can attract different rewards based on two different user-selected variables.

Locking Period: You can choose to lock your deposit for 30/60/90/120/180/270/360 days. Higher locking periods attract a higher APY (180/270/360 locking periods will be available starting March 25th).

Multiplier: Deposits have a 1X multiplier by default. You’re able to choose multipliers of 2X, 4X, 8X or leave on the default 1X setting. Higher multipliers attract a higher APY, but come with an increased risk of liquidations.

Please note that multipliers can be applied only on deposits with a locking period of up to 120 days.

To open a Treasury deposit you can follow this tutorial: https://www.youtube.com/watch?v=QXayGW--jY8&ab_channel=COTIFoundation

To open a COTI VIPER Wallet, check out this tutorial: https://cotinetwork.medium.com/how-to-open-and-set-up-your-coti-pay-viper-wallet-ac23c558f0e7

Who Can Participate?

Native and ERC-20 $COTI holders are both eligible to participate to be rewarded for their new and existing deposits in the Treasury. Geo-restrictions may apply according to our T&C.

A “head-start” bonus will be given to existing Treasury participants who deposited prior to Feb 28th. The seniority of these deposits will be calculated from February 28th instead of March 25th.

How Much COTI V2 Tokens Will I Receive?

Your share of the 40M $COTI V2 tokens is calculated based on your deposit amount and the following factors (each can range between 1.0 to 4.0 and are relative to the rest of the Treasury participants):

Treasury APY Factor (30% weight): This considers your base APY influenced by the deposit’s multiplier, its lock period (options range from 30 to 360 days), and any gCOTI boosts you’ve applied. Meaning: You’ll be rewarded in the same proportion as today, the more you lock, multiply or boost, the more additional APY you’ll receive from the airdrop.

Treasury Duration Factor (40% weight): The rewards grow with the length of time your $COTI has been in the Treasury. While locking isn’t mandatory, withdrawing resets your seniority. Meaning: You’ll be rewarded for your loyalty to the Treasury, the more consecutive days you’ll hold your tokens in the Treasury (no matter how you’ll use them), the more additional APY you’ll receive from the airdrop. This factor is exponential — If you withdraw the tokens and deposit them back, you’ll lost the seniority, as seen in the chart below:

3. Treasury Activity Factor (30% weight): The more you engage with the Treasury by adjusting multipliers, locking in funds, adding to your deposit, or boosting APY with gCOTI, the higher your rewards. The activity will be measured by the amount of fees you were charged, in addition to the COTI’s liquidated in your positions. Meaning: You’ll be rewarded for your activity within the Treasury, which includes fees and even liquidations, relative to other participants. As you generate more actions and fees, you’ll receive additional APY from the airdrop.

4. Head-Start Bonus (Additional): Deposits made prior to Feb 28th gain extra days toward reward calculations (all three factors), boosting your potential share.

Scenarios

Let’s assume that a person deposits 1M $COTI , while the whole Treasury holds 500M $COTI throughout the whole period.

Although it’s impossible to estimate in advance how the airdrop will be broken down, as it depends on too many variables, according to our calculations, and assuming the campaign will last around 9 months (until COTI V2 TGE), the following scenarios could potentially apply:

Keeping $COTI in the Treasury without any lock, multiplier or boost and without any action throughout the whole period, will gain the maximum duration factor but with a minimal Treasury activity factor. This should grant an additional estimated APY of 6–7% on top of their regular APY rewards.

Keeping the maximum duration factor but also locking it to the maximum period (360 days) without a multiplier will also increase the airdrop APY factor. This should increase the additional APY by over 30%.

Alternatively, instead of locking the deposit for the long term, users can move between different multipliers and shorter locking periods to open different deposits. This can boost the activity Factor dramatically. All factors are relative to the rest of the Treasury participants, so if most participants will choose to lock, there’s a bigger potential in gaining higher activity Factors.

Of course “mix and match” is possible and welcomed, so feel free to experiment with different activities to increase your potential share in the airdrop!

Please beware of scams and make sure to participate only in COTI’s official airdrop campaign via your VIPER wallet or https://coti.io/treasury.

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

COTI V2 Airdrop Campaign — All the Details was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

The moment has arrived! We’re thrilled to announce the COTI V2 Airdrop Campaign!

Starting on March 25th, 2024, this incredible community rewards initiative will distribute up to 40M COTI V2 tokens (currently worth ~$8M) amongst Native and ERC-20 $COTI holders! This is in addition to the APY rewards already being earned in the COTI Treasury.

TL:DR

When: The COTI V2 Airdrop Campaign will start on March 25th, 2024. You can join any time! Distribution of COTI V2 tokens will commence shortly after the COTI V2 TGE (Token Generation Event), planned for Q4 this year.

What: All Treasury participants are automatically eligible to receive part of 40M $COTI V2 tokens, on top of their regular APY rewards. It’s our biggest giveaway yet!

Who: Open to $COTI holders, both Native and ERC-20. Plus, our loyal users who’ve made deposits prior to Feb 28th, 2024 get a special bonus, adding extra days to their reward calculations — as a token of our appreciation for their early support.

How: Simply by having a deposit in the Treasury, whether it’s been there a while or it’s brand new.

COTI V2

In the biggest upgrade of our infrastructure to date, we are building the fastest and lightest confidentiality layer on Ethereum. Powered by a breakthrough cryptographic protocol based on Garbled Circuits and secured by Ethereum, we introduce the most advanced and compliant solution for data protection on the public blockchain. Paving the way for the next wave of Web3 innovation and adoption, COTI unlocks a whole new world of use cases, including confidential transactions, Artificial Intelligence, DeFi, decentralized identification, and more.

The $COTI token has an essential role for transaction fuel, network security, and access to privacy features.

The COTI Treasury

In 2022, we launched the COTI Treasury, a way for anyone to deposit $COTI and earn APY rewards in $COTI , and recently also in $gCOTI. At the moment, over 500M $COTI has already been deposited into the Treasury. By choosing the amount of $COTI to deposit, a multiplier, a lock period, and APY boost, users can customize their potential APY. Read more here.

We’re happy to offer new locking options based on your request: longer lock periods of 180, 270, and 360 days for even bigger rewards, starting from March 25th.

This campaign also marks the very first time that $COTI ERC-20 token holders, without VIPER wallets, can participate in the Treasury without KYC, and receive APY rewards in $COTI for their Treasury deposits!

The COTI V2 Airdrop Campaign!

Starting March 25th, all Treasury users will be automatically eligible to receive a share of 40M $COTI V2 tokens, on top of their deposits’ APY rewards.

Airdrop rewards will be determined by a combination of your current APY and deposit conditions such as your multiplier and locking period plus your time and activity in the Treasury.

If you don’t have a deposit yet, just go to https://treasury.coti.io/, log in with your VIPER or Metamask Wallet, and make your deposit with your preferred locking time and multiplier (MetaMask deposits will be available starting March 25th).

If you already have an active deposit, no extra steps are needed to join in but you can choose whether or not to take additional actions, such as extending your locking period.

As a token of appreciation for our loyal users, any deposits made prior to Feb 28th, 2024 will also be eligible for a “head-start” bonus. This bonus adds additional days of eligibility to the rewards calculation for Treasury deposits. This bonus also extends to those who participated in previous Treasury programs like the gCOTI lock-drop campaign.

The COTI V2 tokens distribution kicks off post-COTI V2 TGE (Token Generation Event), aiming for Q4 this year, and will stretch over 12 months. This will align with our COTI V2 migration and token swap, with more details to come.

Dive into the full campaign details and reward formula on this blog: https://medium.com/@cotinetwork/coti-v2-airdrop-campaign-details-cdb1cdeacca3.

This campaign is a key chapter in COTI’s journey, distributing a significant amount of the newly issued COTI V2 tokens as a thank-you to our community. It’s all about making sure our transition is smooth and keeping $COTI at the heart of our growing ecosystem. We’re thrilled for what’s ahead and grateful for the ongoing support from both new and long-standing community members as we explore new Web3 horizons

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

The COTI V2 Airdrop Campaign! was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

Written by Dr. Avishay Yanai, Soda Labs CEO

COTI V2, as a Layer 2 solution built atop the Ethereum network, intricately intertwined its development with the evolution of the underlying Ethereum blockchain. This ensures that COTI V2 consistently aligns itself with the latest upgrades and advancements within the Ethereum ecosystem, a commitment vital for maintaining optimal performance, security, and scalability. As Ethereum charts its course toward scalability and efficiency enhancements, the imminent major upgrade on the horizon is the Dencun upgrade. Within this dynamic landscape, COTI V2 positions itself as a forward-thinking and adaptive L2 protocol, strategically poised to harness the benefits of the forthcoming Dencun upgrade and contribute to the ongoing transformation of the Ethereum network.

The Dencun upgrade will greatly benefit COTI V2 in a number of ways. With an increase in transactional data per block, the Dencun update provides a significant boost to transactional latency while also significantly reducing transaction fees at the same time.

Sharding and Proto-Danksharding

Sharding fundamentally decomposes the Ethereum network into smaller, more manageable segments known as “shards.” Each shard functions autonomously, equipped with its own validators and state, enabling transactions and data to be processed in parallel. Imagine it like a team tackling different segments of a project at the same time — both efficient and effective.

Proto-danksharding, named after the researchers Protolambda and Dankrad Feist, is a preliminary step towards achieving complete sharding (also known as Danksharding), and plays a crucial role in EIP-4844. It encompasses the establishment of essential components such as transaction formats and validation rules, albeit without the actual implementation of sharding. During this phase, both validators and users continue to validate the entire scope of data availability directly.

With Sharding and Proto-danksharding, COTI V2 will be able to deploy improved smart contracts that enable faster execution, lower fees, and more flexibility for both users and developers alike.

Blob Carrying Transactions

EIP-4844 is a proposal to improve the Ethereum blockchain’s scalability and efficiency; it introduces a new type of transaction that allows for the inclusion of large amounts of data in a block without significantly increasing the size of the blockchain. The main goal of EIP-4844 is to increase the network’s capacity to handle more transactions per second, thus improving scalability and reducing transaction fees by introducing a new transaction type called “blob-carrying transactions”.

A blob is a large piece of data that is part of a transaction. Blobs are intended to temporarily store data off-chain to reduce the amount of data that needs to be permanently stored on the blockchain. Blob-carrying Transactions are special transactions that include blobs. They allow for the inclusion of additional data (such as rollup batched transactions or large datasets) without bloating the blockchain.

By allowing transactions to carry blobs, EIP-4844 enables the network to include more data in each transaction. This is crucial for layer 2 scaling solutions like rollups, which can batch many transactions into one and publish them to the blockchain as a single large transaction. So far, L2’s like starkware and arbitrum, used the call-data to pass transactions’ data to the blockchain. While call-data’s original purpose is to pass arguments and parameters to functions and so is permanently stored in the blockchain, the data in blobs is intended to be stored off-chain temporarily, and only permanently store a short cryptographic commitment to that data (a KZG commitment in this case). This means it doesn’t permanently take up space on the blockchain, which helps maintain efficiency and reduces the cost of storage. Even though the blob data is stored off-chain, EIP-4844 ensures that this data is available for a certain period. This is necessary to ensure that the network can validate and process transactions that include blobs.

Since permanently storing data on the blockchain is expensive, e.g., currently, 95% of the transaction fees on Starknet are due to the transaction costs on Ethereum Mainnet (the rest 5% is compute) [reference]. The EIP-4844’s mechanism enables L2s to significantly reduce that cost and in turn, the transaction fees as the blob data is very large (~128KB) and much cheaper than call data. The EVM cannot access and execute this data, and can only see the commitment to this data. Additionally, this data is saved for only one month instead of being stored permanently.

Blob-carrying transactions are set to decrease gas fees on Ethereum L2s by up to 75%, keeping the cost of transactions on COTI V2 extremely low.

EIP-4844 and COTIV2

Existing L2 solutions must adjust their architecture to comply with the new, cost-effective standard. COTI V2’s Layer 2 is designed from the outset to embrace this new standard. This strategic integration aims to significantly reduce transaction fees for both COTI V2’s dApps and users, positioning the protocol at the forefront of scalability and efficiency within the evolving Ethereum ecosystem.

COTI V2’s design not only ensures smooth integration with upcoming Ethereum upgrades but also positions the protocol to actively contribute to the ongoing transformation of the Ethereum network, paving the way for groundbreaking advancements and innovations.

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

How COTI V2 Benefits from the Ethereum Dencun Upgrade was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

From X Spaces to showcasing COTI V2 key use cases, and Djed’s ratio exceeding 800%, a lot has been happening here at COTI, and we’re excited to share a recap of our recent activities. You can stay informed about our latest developments by following your preferred channels, where we provide all the latest news and updates.

Let’s dive in.

COTI V2

We recently shared that we’ve achieved a breakthrough in blockchain encryption to be used on the blockchain for the very first time. This is the first of many proof of concepts in our endeavor to put Garbling Circuits on the blockchain. If you haven’t watched it yet, check out this demo performed by Dr. Avishay Yanai, CEO of Soda Labs, where he successfully demonstrates how private transactions will work on COTI V2:

<a href="https://medium.com/media/9d588bffd3c2a1e8635299b7f330f3bb/href">https://medium.com/media/9d588bffd3c2a1e8635299b7f330f3bb/href</a>

We also recently announced our upcoming Devnet and key target use cases for the growth fund, currently valued at almost $80 million. These use cases include confidential DeFi, confidential transactions for payments, stablecoins and RWA, confidential machine learning (introducing GCML) and on-chain sensitive data management and dynamic decentralized identification (DID).

COTI’s Airdrop Campaign Poll Results

In anticipation of the upcoming COTI V2 airdrop campaign, we’ve conducted a poll in which we asked you to share the duration for which you would lock your deposit. We were amazed by our strong community, with 35% of you indicating that you plan to lock your deposit for 365 days or more. Check out Shahaf Bar-Geffen’s thread to see the full results: https://twitter.com/shahafbg/status/1765737410027999285

gCOTI as Treasury Rewards

As of February 21, Treasury participants started receiving gCOTI rewards in addition to the standard $COTI rewards. Unlike $COTI rewards that are actively required to be claimed, accumulated gCOTI rewards are distributed directly to users’ wallets on a weekly basis.

Djed

For all our new community members unfamiliar with it, DJED is an overcollateralized stablecoin on Cardano that uses ADA as collateral to ensure stability. The protocol is backed by 400–800% overcollateralization, provided by its reserve coin, SHEN. In the past few days, Djed’s protocol ratio has exceeded over 800%, making it impossible to mint more SHEN until the ratio returns to 400–800%. SHEN holders enjoy a variety of rewards including a share of both mint and burn fees, delegation rewards, as well as DEXs APRs. SHEN delegation rewards were distributed up to epoch 467, with over 485K ADA distributed to SHEN holders thus far.

COTI in the Spotlight

Last Monday, Shahaf Bar-Geffen and Dr. Avishai Yanai engaged in an interesting conversation on X Spaces, attracting almost 8K listeners until today! They discussed how garbled circuits work and shared some interesting overview on garbled circuits’s use cases such as DID, confidential transactions, and confidential machine learning. If you haven’t listened yet, tune in here- https://x.com/i/spaces/1mrGmyWazkgGy

We’ve been also seeing mentions of COTI all around the web, and here are some of the highlights:

https://twitter.com/Crypto_Dep/status/1755575905219469640/photo/1

https://twitter.com/lunarcrush/status/1755720181677183373?s=52

COTI Unveils New Blockchain Encryption Paradigm With Garbled Circuits - The Defiant

COTI Announces Upcoming ETH L2 Developer Network and Key Target Use Cases For its $100M Worth Growth Fund - Decrypt

COTI’s Community is growing!

We’ve been seeing a lot of new community members joining the ecosystem, with thousands of new followers and members entering our channels. This is a great opportunity to welcome all of you. Glad you’ve joined our journey, thanks for supporting us!

Stay tuned for more updates.

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

COTI Roundup was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.

COTI Foundation is proud to announce the key use cases it will target using its development fund, currently valued at almost $100 million, to be allocated in COTI tokens.

Blockchain networks have created an entire industry of revolutionary experiences. Borderless finance, democratized leadership, trustless interaction, and automated contract management are just a handful of massive opportunities that would be impossible without Web3. But as world-changing as it is, Web3 has always been limited by a stark lack of privacy. Full transparency is refreshing for democratizing an organization, but it cripples the practicality of many other use cases.

COTI V2, powered by Garbled Circuits, introduces a 1000 times faster and 250 times lighter privacy solution that can be operated on any device, providing a seamless and better user experience than current solutions. Additionally, Garbled Circuits can handle transactions between multiple parties, unlike limited ZK-based solutions. The ability to keep data secure while using it for verification and computation — especially at this scalability — creates new use cases for not only Web3 applications, but Web2 industries as well.

The COTI Foundation will bolster the growth of the COTI ecosystem using its substantial development fund. The first step will start with the upcoming Developer Network (Devnet) to be launched in early Q2, this year. The launch of the COTI V2 Devnet along with the upcoming grant program will allow developers to experiment and build with the technology and be rewarded for their contribution. Utilizing the familiar smart contract language, Solidity, developers can bring privacy to existing applications, or innovate by creating brand-new use cases for the ecosystem.

The following use case areas show what, we believe, are the most critical areas where COTI V2 can revolutionize the market. Over time, there will undoubtedly be more areas and innovative ideas that the community will bring forward. Development teams can submit proposals of their ideas, and the most promising and innovative projects will earn grants to accelerate their successful implementation.

Confidential DeFi

DeFi has transformed how the industry views finance and its possible uses. However, the on-chain transparency has also created an uncomfortable compromise of privacy eliminating institutions from using Defi for regulatory reasons. Novel DeFi primitives such as private AMMs, dark pools, under-collateralized lending, blind auctions, and Hybrid DEXs all rely on the ability to shield the privacy of users as well as the content of transactions. Without this privacy, DeFi’s innovation capability plateaus.

COTI V2 will bring confidential transactions that allow decentralized apps to offer new products and services, but also greatly increase both the privacy and security of services they currently offer (all while still being able to maintain regulatory requirements).

The other critical DeFI improvement is COTI V2’s ability to finally solve one of the longest-running “exploits” in Ethereum DeFi: Losses from MEV. With encrypted DeFi transactions, MEV bots and frontrunners do not have the information needed to frontrun transactions and profit at others’ expense.

With the upcoming COTI V2 Devnet, developers will have the opportunity to take their existing dApps and easily create robust overhauls using the COTI V2 data security, or develop new DeFi-driven dApps that simply weren’t possible before now.

Confidential Transactions for Payments, Stablecoins and RWA

Traditional finance systems offer distinct levels of confidentiality to users, fostering trust and encouraging participation. In everyday banking, for example, the confidentiality of transactions is paramount. For Web3 to achieve mainstream adoption, it must follow. COTI V2 addresses this challenge by providing secure confidentiality and ensuring adherence to regulatory standards for assets, including stablecoins and real-world assets. COTI V2 enables confidential payments by maintaining the transparency of fund flow while encrypting transaction details such as the amount of funds sent and the type of tokens involved.

Confidential Machine Learning (introducing GCML) and On-Chain Sensitive Data Management

Data management is playing a stronger role in daily life, creating new opportunities for data brokers, and advertising applications, but if the data is not protected it can be at the expense of customers. COTI V2 creates the ability to store data on-chain in an encrypted manner and then allows others to query this data confidentially. This can be valuable for analyzing sensitive information such as medical records without compromising patient confidentiality.

Not only that, with the COTI V2 model, data can be safely shared across sites that today would scrape and sell the data. Large language models (LLMs) like ChatGPT utilize vast amounts of user data to provide more services and knowledge to their customers but may violate both user privacy and company IP. However, with COTI V2 using GCML (Garbled Circuits Machine Learning), these models could do so in a way that doesn’t violate the privacy of those whose data it uses, opening up whole new business models.

Dynamic Decentralized Identification (DID)

COTI V2 allows all identity verification and personal information to be shared, calculated, and stored, but without revealing the actual data to other parties. The user stores their own data, is fully able to comply with KYC requirements, but doesn’t have to give away their information. At the same time, dApps will be able to interact with digital identities and query them on specific insights (e.g. Is the user an EU citizen? Is the user over 18 years old?). All of this happens with no specific, private information being shared between parties. The result is countless applications for both Web2 and Web3 to create trustless environments where parties can interact globally in a fully regulated environment, all without compromising their sensitive information. This will open entire new sub-industries for global services.

On-chain privacy has been one of the few but largest weaknesses of a Web3 mass adoption ecosystem. There are already major privacy issues within Web2 industries, and the problems they create are felt by nearly everyone. COTI V2 with its innovative garbled circuit technology comes at the perfect time for the Web3 industry to not only resolve its data privacy issues, but to create solutions far superior to anything Web2 can provide its users. The business opportunities are ripe for the picking, and developer teams globally are invited to take part in our upcoming COTI V2 Devnet.

Stay COTI!

For all of our updates and to join the conversation, be sure to check out our channels:

Website: https://coti.io/

X: https://twitter.com/COTInetwork

YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA

Telegram: https://t.me/COTInetwork

Discord: https://discord.gg/9tq6CP6XrT

GitHub: https://github.com/coti-io

Announcing COTI’s Upcoming ETH L2 Developer Network and Key Target Use Cases For its Growth Fund was originally published in COTI on Medium, where people are continuing the conversation by highlighting and responding to this story.