Overview of Joshua Maddox and COTI
Joshua Maddox serves as the Chief Ecosystem and Partnerships Officer at COTI, a layer 2 solution built on the Ethereum blockchain specifically for digital payments, utilizing its own innovative blockchain protocol. Under Maddox’s guidance, COTI has made significant progress in the implementation of garbled circuits, marking a pioneering deployment of this privacy-focused technology on a live blockchain. This development facilitates secure multi-party computations, allowing multiple users to perform calculations using their data while maintaining confidentiality. Recently, COTI was chosen to take part in the Central Bank of Israel’s Central Bank Digital Currency (CBDC) pilot program, collaborating with notable industry players like PayPal and Fireblocks. Established in 2017, COTI has successfully raised over $500 million from leading investors, including Cardano’s cFund, Borderless Capital, and Cardstarter. Prior to his role at COTI, Maddox was the Head of Developer Ecosystem and Grants at the Provenance Blockchain Foundation, where he pioneered the largest grants initiative for regulated financial services on blockchain, distributing more than $50 million to foster innovation in the sector.
Transitioning from Traditional Finance to Crypto
Maddox’s journey into the blockchain realm began while he was employed at Acumen, a capital fund aimed at supporting businesses that benefit low-income communities. His responsibilities included formulating engineering-to-marketing strategies and monitoring emerging technologies like artificial intelligence and blockchain. During this period, he had early access to versions of ChatGPT and began exploring Cardano, prompting him to realize the potential for making a more significant impact by directly engaging in the blockchain industry.
Influences from Asia on COTI’s Growth Strategy
Having spent time in China and Southeast Asia, Maddox acknowledges the vibrant atmosphere in nations like Thailand, Vietnam, and Singapore, where there is a strong enthusiasm for innovation among the younger population. He sees a similar momentum in Dubai, noting how the demographic shifts in Western and Chinese populations present an opportunity for growth. This appetite for innovation is something that COTI strategically incorporates into its development plans.
COTI’s Approach to Privacy in Crypto
COTI is currently prioritizing what they term “compliant privacy,” a concept that may seem paradoxical but represents the company’s vision for the future. While all transactions on the blockchain are publicly accessible, many users are unaware of their vulnerability. COTI believes in the right to privacy, but emphasizes the necessity for it to align with regulatory frameworks. This is where garbled circuits come into play, enabling encrypted computations on public blockchains while allowing for key sharing with regulators when necessary. This approach provides a balanced solution that caters to both user privacy and compliance requirements.
Understanding Garbled Circuits versus ZK Proofs
ZK proofs (Zero-Knowledge proofs) allow individuals to verify information without disclosing the underlying data, essentially providing yes/no responses. On the other hand, Fully Homomorphic Encryption enables computations to occur directly on encrypted data. Garbled circuits integrate aspects from both technologies, offering a solution that is efficient and lightweight, making it particularly suitable for mobile and real-time decentralized applications (dApps). This method ensures secure computation and verification, all while maintaining optimal performance.
Shifting from Payments to Privacy
COTI initially focused on payment solutions but pivoted towards addressing privacy concerns, which they identified as a significant barrier to widespread adoption. During Maddox’s time at Provenance, discussions with major institutions often stalled due to privacy issues. The options available were limited to offchain solutions, private blockchains, or abandoning the project altogether. COTI’s technology aims to bring privacy to public blockchains without compromising regulatory compliance.
Provenance’s Status in the RWA Space
Provenance continues to be a leading platform for real-world assets (RWA), boasting over $30 billion in transactions and $14 billion in total value locked (TVL). The platform’s interface cleverly conceals the underlying blockchain technology, illustrating the ideal scenario where users can benefit from blockchain without even realizing it is in use.
Current User Attitudes Towards Privacy in DeFi
While the average decentralized finance (DeFi) user may exhibit decreased concern regarding privacy, this is often due to a lack of understanding of the implications. The reality is that sensitive information, such as banking history and private communications, could remain permanently accessible on the blockchain. COTI believes it is their responsibility to develop privacy solutions that are inherently integrated, allowing users to navigate the space without having to think about their privacy needs.
Building a Community Around COTI
Maddox emphasizes that technology alone is insufficient without a supportive community. To help non-developers embrace the blockchain ecosystem, COTI launched stay.coti.io, a platform aimed at educating individuals on building with AI tools, even those without prior coding experience. This initiative pairs learners with developers to instill best practices in security and smart contract development, anticipating a future where AI-native builders will surpass traditional developers.
Future of AI-Powered dApp Development
Minimum viable product (MVP)-level applications are already in development, with fully market-ready applications expected within the next 12 to 36 months. Maddox suggests that around the 24-month mark may be the optimal timeframe, as advancements in the field are occurring at a rapid pace.
Notable Achievements in AI at COTI
An impressive illustration of COTI’s AI initiatives involves their head of marketing, who, despite lacking coding experience, developed an AI system over a weekend that identifies quilt patterns and educates others on replicating them. This showcases the transformative capability of AI, allowing individuals to transition from concept to prototype without any technical background.
Vetting Ambassador Applications at COTI
With over 700 applications received from potential ambassadors, COTI focuses on identifying individuals with genuine use cases for privacy. Many applicants may not recognize their need for privacy until confronted with specific challenges. The program is designed to raise awareness and assist applicants in creating effective solutions.
Insights Gained from Cardano and Provenance
Reflecting on his experiences with Cardano and Provenance, Maddox acknowledges that COTI has room for improvement in terms of being developer-friendly. The key takeaway has been the importance of rapid deployment. This insight led to COTI’s decision to launch on the Ethereum Virtual Machine (EVM), emphasizing the necessity of comprehensive tools and documentation for developers to thrive.
Recognizing Achievements in Other Ecosystems
Maddox offers commendation to Solana, particularly highlighting the efforts of Chase Barker, their developer lead, who has worked diligently to enhance developer tools and community support. Barker’s commitment to the project, including his promise to step down when Solana no longer required his assistance, exemplifies true dedication to the ecosystem.
Future Stablecoin Integrations for COTI
COTI has recently introduced support for USDC, with plans to incorporate additional stablecoins in the future. The choice of USDC was driven by market demand, but the company remains open to exploring other stablecoins, particularly those that emphasize privacy. The overarching goal is to align liquidity with practical applications.
Future Prospects for COTI
Maddox expresses enthusiasm for several developments on the horizon for COTI. The growth of stay.coti.io is particularly promising, alongside COTI’s role as a founding member of both the Saudi Blockchain Center and the Africa Tokenisation Council. As governments increasingly support tokenization efforts, COTI is strategically positioned to play a central role in this evolution.
Support Initiatives for New Builders
COTI is actively engaged in supporting new builders through various initiatives, including weekly livestreams, bi-weekly competitions, and quarterly live events. This August, the company plans to host a pop-up city in Thailand focused on AI-enhanced builders, offering a comprehensive immersion experience for a select group.
Post-Event Support for Builders
After these events, builders receive support through the ABC Fund—standing for Ambassadors, Builders, and Creators—which provides grants, marketing assistance, and introductions to potential investors. COTI recognizes that projects require more than just financial backing; they also need guidance, visibility, and access to funding pathways.
Looking Beyond Privacy and COTI
Beyond COTI and privacy initiatives, Maddox is particularly optimistic about the future of tokenization. Reports suggest that tokenized assets could reach a staggering $60 trillion by 2030, with Provenance alone already facilitating $30 billion in volume. This represents just a fraction of the potential growth that lies ahead in the sector.
