Coti: History, Uses & Future Trends in Cryptocurrency Technology

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What is Coti? Guide to history, uses, and future trends

Overview of Coti and Its Cryptocurrency

What do you know about Coti, its digital currency, and its influence on the financial landscape? This article aims to provide you with comprehensive insights.

Understanding Coti

Coti, which stands for Currency Of The Internet, is a Layer 2 infrastructure that facilitates rapid, scalable, and private digital transactions. Initially launched in 2017 as a payment network based on Directed Acyclic Graph (DAG) technology, Coti has significantly evolved with the rollout of Coti V2, which became operational in 2025. Coti V2 represents a state-of-the-art Layer 2 network built on Ethereum, aimed at enhancing the speed, privacy, and scalability of digital payments. A key feature of this system is its implementation of Garbled Circuits, a sophisticated cryptographic method that ensures transaction data remains confidential, even during processing. This allows users to conduct secure transactions without disclosing sensitive information. As the platform advances, it continues to utilize its native token, Coti (COTI), which plays a vital role in transaction fee payments, staking, and essential governance, thus being integral to the entire ecosystem. Coti’s development positions it as a leader in privacy-centric payment solutions within the Web3 landscape.

Operational Mechanism of Coti

Coti V2 supersedes its previous Trustchain Algorithm and DAG model with a more sophisticated Ethereum Layer 2 architecture that prioritizes scalability and privacy. Central to this upgrade is the incorporation of Garbled Circuits, which facilitate encrypted data processing—allowing transactions to be validated without disclosing their details. This method operates 3,000 times faster than conventional privacy solutions like ZK-SNARKs. Transactions are processed in an off-chain Layer 2 environment before being settled on Ethereum to ensure security. The system features a MultiDAG framework, enabling various token ecosystems, such as stablecoins or enterprise-specific tokens, to operate concurrently within the same infrastructure. The COTI cryptocurrency plays a crucial role in this ecosystem, being used for transaction fees, incentivizing node operators, and participating in governance, thereby providing both functional and economic significance.

Applications of Coti

Coti is designed to facilitate private, secure, and high-volume transactions, whether they are peer-to-peer, business-to-business, or machine-to-machine. Through Coti Pay and its extensive ecosystem, merchants can handle both fiat and cryptocurrency transactions with near-instant settlement times and minimal fees. Developers and organizations can create their own privacy-focused tokenized economies on Coti’s MultiDAG framework. By 2025, the newly launched Coti V2 network has greatly broadened potential applications in Web3 privacy, supporting sectors like decentralized finance (DeFi), healthcare, and supply chain management. The COTI token remains essential for the entire network, serving purposes such as transaction fee payments, network security through staking, rewarding node operators, and allowing token holders to participate in governance decisions. Coti’s focus on zero-knowledge-style privacy and scalability positions it as a foundational layer for the upcoming generation of financial applications.

Coti’s Price Trends

The historical price movement of COTI has mirrored broader trends in the cryptocurrency market as well as the project’s developmental trajectory. Upon its launch in 2019, the COTI token was initially priced between $0.03 and $0.05, experiencing minimal fluctuation during its early phase. The first significant price increase occurred in early 2021, fueled by a renewed interest in altcoins and DeFi, propelling Coti (COTI) to reach an all-time high of about $0.68 in September of that year. This spike coincided with increased adoption, notable partnerships (including one with Cardano), and the launch of essential products like COTI Pay and the native treasury. However, similar to many other cryptocurrencies, COTI’s value experienced a downturn throughout 2022 amid a wider market slump. As of May 2025, COTI’s trading price was $0.072, reflecting cautious investor sentiment and the prevailing macroeconomic environment.

Frequently Asked Questions

What is the total supply of Coti? COTI has a total supply of 2.11 billion tokens, with a maximum limit set at 4.91 billion. Is COTI secure? Yes, COTI boasts a high level of security. It employs Garbled Circuits for encrypted and private transactions and functions on Ethereum Layer 2, ensuring robust decentralization. The network has also undergone audits by Hacken to validate its security measures. What distinguishes Coti from others? Coti stands out by combining speed, privacy, and scalability through its use of Garbled Circuits, making transactions 3,000 times quicker than traditional privacy solutions. It also supports customized tokens via MultiDAG and fully integrates with Ethereum, all driven by the COTI token. Disclaimer: This article does not provide investment advice. The information and materials presented are solely for educational purposes.