COTI COTI Rank #773 $0.0074 ▼ 5.13%

COTI is a layer-2 network built on Ethereum that focuses on confidentiality and data protection for on-chain activity. It functions as a privacy-oriented execution layer, employing a cryptographic approach known as Garbled Circuits to enable encrypted computation while inheriting security guarantees from the Ethereum base layer. The protocol is designed to support a range of Web3 applications where sensitive information needs to remain private, including confidential token transfers, decentralized finance operations, decentralized identity systems, and artificial intelligence workloads that process personal or proprietary data. By offering programmable privacy, COTI aims to make public blockchains usable for enterprise and consumer use cases that require compliance and data confidentiality. COTI is associated with several overlapping categories in the Ethereum ecosystem, including smart contract platforms, layer-2 scaling solutions, zero-knowledge cryptography, and privacy infrastructure. It has also been discussed in regulatory and legal contexts alongside tokens alleged to be securities, reflecting ongoing debate about how digital assets that combine privacy features with programmable smart contracts are classified.