The COTI Network is gaining attention after its recent inclusion in the Tokenized Asset Coalition (TAC). The introduction of COTI V2, a Layer 2 solution compatible with Ethereum’s EVM, aims to deliver privacy-enhancing features for decentralized applications (dApps), confidential transactions, machine learning, decentralized identity, and more. At the heart of COTI V2 is the use of garbled circuits, a technology designed to bolster privacy and facilitate secure multi-party computations. In a recent discussion, we engaged with Joshua Maddox, the Chief Ecosystem and Partnerships Officer at COTI, to explore the significance of blockchain privacy and the company’s role in this evolving landscape.
Introducing Joshua Maddox and COTI’s Mission
My name is Joshua Maddox, and my background spans marketing, strategy, and software engineering. Unable to choose between marketing and engineering, I’ve managed to blend both roles, leading to my current position overseeing ecosystems. I manage operations for the Tokenized Asset Coalition across the APAC and MENA regions, advise the Provenance Blockchain Foundation, and serve as the Chief Ecosystem & Partnerships Officer at COTI. My efforts focus on advancing tokenization, compliant privacy, and regulated financial services, having orchestrated over $100 million in grant initiatives within the Ethereum and Cosmos ecosystems. Under my guidance, we’ve secured more than $10 million in grants for various projects. I have facilitated collaborations with industry giants such as JP Morgan, Unilever, and IBM, aiming to connect innovative technology with global impact. At COTI, we are dedicated to establishing ourselves as the privacy layer for web3. In essence, we deliver compliant privacy solutions with unprecedented speed and cost-effectiveness on a public blockchain, leveraging a breakthrough in Garbled Circuits that allows selective data access and secure operations while maintaining encryption.
Blockchain Technology and Privacy Infrastructure
The importance of privacy often goes unnoticed until people face issues that compel them to care—such as significant data breaches. Privacy infrastructure in blockchain becomes crucial as it allows developers to implement privacy features proactively, before users realize their necessity. By decentralizing data and ensuring compliance, particularly by preventing any single entity from controlling decryption keys, we can eliminate points of failure that often lead to data leaks. While blockchain alone won’t solve every problem, it provides a new toolkit that addresses core privacy concerns effectively and efficiently, and interest in this technology is surging both within and outside the web3 ecosystem.
Zama’s Funding and the Maturation of Privacy Solutions
The recent $57 million Series B funding round for Zama, which raised its valuation over $1 billion, underscores that privacy technology is no longer a niche concern but a critical component of the crypto industry. This funding reflects investor confidence in privacy solutions that have matured from experimental concepts to enterprise-ready technologies, particularly those that facilitate computations on encrypted data. As the industry recognizes privacy as essential for mass adoption amid rising cyber threats, we anticipate 2026 to be pivotal for the mainstream acceptance of privacy, especially concerning stablecoins where privacy-preserving solutions are actively under development. COTI is positioned as a leader in this field, having launched Garbled Circuits on the mainnet and already forming partnerships that integrate our technology into practical applications, establishing us as the go-to provider for compliant and efficient on-chain privacy.
Vitalik Buterin and the Need for Privacy Technology
Vitalik Buterin, the founder of Ethereum, recently emphasized the crucial role of privacy technology in blockchain, a sentiment that resonates with our mission at COTI. His argument that concentrated information equates to concentrated power highlights the risk of blockchains becoming tools of surveillance rather than instruments of liberation. This aligns perfectly with our vision of promoting privacy-preserving technologies that allow developers and users to maintain control and avoid centralized data silos while still engaging with regulatory frameworks and the broader promises of web3.
Shifting Perceptions of Privacy Infrastructure
Although privacy has always been a concern, many individuals fail to recognize its significance until it becomes urgent. The current shift towards prioritizing privacy—what some are calling a “privacy summer”—is driven by global instability and the inadequacies of governments and large organizations to protect citizens’ data. As more individuals understand the importance of privacy, especially in light of data leaks and cyber incidents, COTI is dedicated to making private digital finance accessible by enabling developers and institutions to utilize compliant privacy solutions that meet legal requirements in their local jurisdictions. Our technology empowers developers to create products on public blockchains that comply with evolving regulations, thus facilitating the development of privacy-centric applications.
COTI’s Technology and Its Application
Unlike many privacy projects still under development, COTI’s technology is already operational, with builders actively leveraging its core features. Garbled Circuits stand out due to their remarkable speed and efficiency—our recent benchmarks show they are 3,000 times faster and 250 times lighter than competing privacy technologies. This efficiency allows compliant privacy solutions to be achieved at unprecedented speed and cost. Through our data privacy framework, developers can assign specific data access rights to different users, ensuring that each participant in a transaction accesses only the information necessary for their role. This granular control is further enhanced by our Privacy on Demand feature, which allows developers to integrate COTI’s privacy layer into existing applications on other blockchains, providing flexibility and scalability.
Balancing Privacy and Regulatory Compliance
COTI’s model of compliant privacy allows individual users to access only the essential data slices they need within a transaction. This capability enables developers to create experiences that prioritize robust data protection while ensuring adherence to regulatory standards. By granting developers control over data privacy, we empower users to determine which information should remain private and what can be shared with third parties or regulators, fostering a collaborative approach to privacy and compliance tailored to specific legal environments.
The Future of Privacy Infrastructure
With COTI’s Privacy-on-Demand features, we can enhance existing blockchain systems by introducing our innovative garbled circuits technology. For off-chain systems, the goal is to eliminate intermediaries, which typically require trust. Blockchain’s fundamental value is its ability to replace trust with verifiable truth. As we identify segments of existing systems that can transition on-chain, we can implement decentralized solutions that maintain compliance. This transition opens a multitude of opportunities in fields like DeFi and traditional sectors, where privacy combined with verifiability is essential.
COTI’s Distinct Features in Privacy Technology
While zero-knowledge proofs (ZK) and fully homomorphic encryption (FHE) offer valuable capabilities, COTI’s garbled circuits combine the strengths of both with enhanced speed and cost-effectiveness. In our benchmarks, COTI’s technology has demonstrated to be roughly 3,000 times faster and 250 times lighter than its nearest competitor. While ZK proofs excel in verification, they can be limiting, and FHE, though capable of enabling computations on encrypted data, often proves impractical due to its resource intensity. Garbled Circuits allow for both verification and computation on encrypted data at a level of efficiency that supports a wide range of devices, making it a standout solution within the privacy technology landscape.
Privacy’s Role in AI and Interoperability
Privacy, when combined with trustless systems, opens new possibilities for emerging technologies like artificial intelligence (AI). As AI agents gain intelligence and access to vast amounts of data, they pose significant security risks. Ensuring data privacy while allowing secure computations enables AI agents to handle sensitive information responsibly. This balance of privacy and compliance is vital for the interoperability and collaboration of AI agents across various systems, and as their capabilities expand, the significance of privacy will only grow.
The Future of Privacy Technology in Blockchain
In the blockchain sector, I do not foresee a single dominant privacy technology emerging. Typically, we observe the rise of duopolies or a few key players in most technology domains, with continuous innovation driving evolution. I believe that the privacy landscape in blockchain will evolve similarly, with technologies like ZK and FHE remaining essential. However, garbled circuits and COTI are well-positioned to emerge as leaders as the industry matures. A thriving ecosystem relies on diverse implementations that foster experimentation, innovation, and the exploration of new ideas, including further developments in garbled circuits.
Enhancing Tokenization and Real-World Assets with Privacy
As tokenization and the integration of real-world assets grow, the necessity for privacy becomes paramount. The movement of trillions of dollars in real-world assets onto public blockchains hinges on the ability to maintain both privacy and compliance with regulatory standards. COTI is already witnessing increased interest from projects in the real-world asset space due to our proven capabilities in ensuring privacy in compliance with legal requirements. As privacy becomes a fundamental aspect of the real-world asset narrative, it will play a crucial role in driving blockchain transactions, paving the way for mass adoption in the coming years.
