COTI gets its very own AI Chatbot!

We are happy to share that we have now completed the trial phase of our custom AI Chatbot that can now be accessed from within the COTI developer documentation. The Chatbot runs a model that is specifically trained to serve the COTI developer community, providing tailored answers to all types of technical queries.

The COTI AI model is comprised of different sources like GitHub repositories, MPC Libraries, Docs, EVM technical docs, SDK documentation, and SDK Examples. By incorporating the broadest swathe of COTI training data, the Chatbot is able to give tailored answers on anything from onboarding and accounts to contracts and dApps. It can also tell you how to create your own privacy-preserving smart contracts!

The bot helps to speed up the onboarding process for new developers.The Chatbot will start life within the docs but plans are being made to extend it to the COTI Discord.

Ongoing Model Training

Every good AI model is continuously improving and the COTI AI model is no different. We have provided a function to allow for user feedback. Simply ask it a question about the COTI network and it will give you the opportunity to provide feedback on what it did well. The more feedback you supply, the better it gets!

So what are you waiting for? Visit our docs to give it a try today.

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

PriveX is the first intent-based perpetuals DEX to launch on COTI, bringing unprecedented privacy and security to DeFi traders.

COTI, the leading provider of the fastest and lightest confidentiality layer on Ethereum, is proud to announce its strategic partnership with PriveX, the first intent-based privacy perpetuals DEX. PriveX has integrated COTI’s cutting-edge privacy-preserving Layer 2 technology into its platform to provide secure, confidential transactions while ensuring a seamless, safe and fair trading experience.

This partnership represents a significant milestone for the decentralized finance space. By leveraging COTI’s advanced cryptographic protocol, Garbled Circuits, PriveX can offer its users the freedoms of DeFi with the efficiencies of CeFi. Traders on PriveX will be able to execute strategies without exposing sensitive data, such as stop-loss positions or trade amounts, thereby protecting their tactics from market manipulation.

COTI’s CEO Shahaf Bar-Geffen commented:“Privacy has long been a barrier to the broader adoption of decentralized finance. COTI’s state-of-the-art confidentiality layer will provide PriveX users with the security they need to trade confidently, tapping deep liquidity pools on centralized exchanges whilst enjoying the decentralized, self-custody benefits of DeFi.”

The partnership will see PriveX launching its Test-Mainnet environment for whitelisted addresses on the Base network, with plans to transition to COTI V2 when COTI moves to Mainnet later this year. Traders on PriveX will benefit from COTI’s privacy-preserving technology, which includes features like confidential trading strategies and trade amounts.

PriveX will empower the COTI community with instant access to high-leverage positions on a wide range of coins, offering up to 60x leverage and unlocking new opportunities for strategic trading. With seamless integration into the COTI network, users will enjoy fast transactions, competitive fees (on the network and on the platform), and a user-friendly interface, all designed to enhance their trading experience. PriveX itself partners with Symm.io and IntentX.io’s ‘solver solution’ to deliver CEX-like liquidity across more than 250 trading pairs.

Today’s collaboration marks a significant expansion of COTI’s privacy-centric Layer 2 technology, demonstrating its versatility across different DeFi applications. The COTI community will enjoy first-movers advantage on the PriveX DEX, accruing reward points in return for trade volume. Points will then be counted towards an airdrop when PriveX moves to COTI V2. Join the PriveX community here.

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

Privacy is critical to unlocking asset tokenization, the next wave of growth for Web3 adoption.

TL;DR:

RWAs can drive Web3 adoption through tokenization, offering liquidity, fractional ownership, and enhanced global market access.

Privacy concerns have slowed RWA adoption, with secure transactions and confidentiality being critical for institutional participation.

Transparency on public blockchains deters institutions due to potential exposure of sensitive data.

COTI's Garbled Circuits technology provides privacy through encrypted data storage, selective disclosure, and secure multi-party interactions.

COTI enables private lending, confidential trading, and more!

COTI bridges the gap between traditional finance and blockchain, unlocking the potential of RWA tokenization.

Real-World Assets (RWAs) represent a significant opportunity for Web3 adoption through the tokenization of tangible assets like real estate, commodities, and other financial instruments. Introducing RWAs into decentralized finance can bring greater liquidity, fractional ownership, and access to global markets.

However, RWAs have been slow to join the Web3 movement. Issuers demand privacy measures to protect sensitive information and ensure secure transactions. Privacy is seen as critical to maintaining individual and institutional data, preventing unauthorized access, and ensuring transaction integrity.

COTI’s privacy solution, based on Garbled Circuits, is uniquely capable of providing both scalable and secure transactions, addressing the privacy concerns that are stalling the tokenization of RWAs. Let’s take a closer look.

RWAs present the next wave of exponential growth for the blockchain industry.

The tokenization of physical and financial assets promises to revolutionize how we trade, own, and manage real estate, bonds, precious metals, luxury items, artwork and even intellectual property. With projections suggesting the asset tokenization market could reach $16.1 trillion by 2030, the potential is staggering!

Yet, despite this enormous opportunity, adoption is lagging.

The global real estate market, valued at approximately $398 trillion, is expected to be the largest type of tokenized asset by 2030 but has seen less than 0.1% tokenization. Similarly, the $130 trillion global bond market has barely scratched the surface, with only about $20 to $30 billion tokenized so far.

The gap between potential and current adoption isn’t due to lack of interest. Major financial institutions like JPMorgan Chase, HSBC, and Goldman Sachs are entering the space, having recognized the transformative potential of RWA tokenization.

The real obstacle lies in the nature of public blockchains themselves. Blockchain transparency is typically considered a feature but can be a significant barrier when dealing with sensitive financial assets. As we’ll explore in this article, the key to unlocking asset tokenization worth hundreds of trillions of dollars lies in solving a critical challenge: privacy — and this is where COTI excels.

What are RWAs and how do they work?

RWAs in the blockchain context refer to the tokenization of physical or traditional financial assets. This process creates a digital representation of the asset on a blockchain, effectively bridging the gap between the physical and digital worlds.

Here’s how RWAs typically work:

Asset identification: A real-world asset, such as a piece of real estate, a bond, or a commodity like gold, is selected for tokenization.

Legal structuring: The asset is placed within a legal framework that allows for fractional ownership and ensures compliance with relevant regulations.

Tokenization: The asset is digitally represented as tokens on a blockchain. Each token represents a fractional ownership of the underlying asset.

Smart contract creation: Rules governing the token’s behavior, such as transfer restrictions, dividend distributions, or voting rights, are encoded in smart contracts.

Token issuance: The tokens are issued on the blockchain and can be bought, sold, or traded by investors.

Ongoing management: The tokens continue to represent ownership of the real-world asset, with any income or value changes reflected in the token’s price or through distributions to token holders.

RWAs offer several ground-breaking benefits such as increased liquidity for traditionally illiquid assets, fractional ownership allowing broader investor participation, 24/7 trading capabilities, reduced intermediaries and associated costs, and transparent and immutable record-keeping.

Challenges facing RWA tokenization

Despite the transformative potential of RWAs, several hurdles have slowed tokenization and deterred widespread participation.

The regulatory landscape for tokenized assets remains complex and inconsistent across jurisdictions, introducing uncertainties around securities laws, anti-money laundering guidelines, and investor protections. Technical issues further complicate the picture, with the difficulty of tokenization varying significantly across asset classes. Industries dealing with commodities, real estate, or heavily regulated sectors face particular challenges in realizing the full benefits of tokenization. Traditional financial institutions also present a barrier, often requiring investment products to have a 7–10 year track record before onboarding, effectively excluding most RWA projects due to their novelty.

However, among these challenges, privacy concerns have emerged as a critical hurdle, particularly for institutional adoption, as mentioned in a recent report by Deloitte on tokenization:

Greater privacy will be required in order to encourage investors to adopt tokenized assets. And naturally, investors will likely want to protect certain kinds of information from a host of parties, including potential competitors.

The very nature of public blockchains — their transparency — poses significant privacy challenges that are preventing widespread adoption. These privacy issues are particularly acute in the context of RWAs, where the assets involved are often high-value and the stakeholders require similar levels of confidentiality to that which traditional finance has provided.

The transparent nature of public blockchains makes all transactions visible and traceable. This transparency can expose sensitive financial information of individuals and institutions involved in RWA tokenization. For high-value transactions or investments in tokenized assets like real estate or art, this lack of privacy could reveal confidential financial details about the parties involved.

Traditional financial institutions and large investors often have strict requirements for client confidentiality. The lack of privacy in RWA tokenization makes it difficult for these institutions to participate without potentially violating client confidentiality agreements or regulatory requirements like GDPR or financial secrecy laws. This privacy concern significantly deters institutional participation in the RWA tokenization market.

The public nature of transactions in RWA tokenization can make the market more susceptible to manipulation. Traders or investors with access to transaction data could potentially use this information to influence market prices or engage in front-running. This lack of privacy in trading activities could undermine market integrity and fairness, especially for larger transactions or in less liquid markets.

Addressing these privacy challenges is crucial for unlocking the full potential of RWA tokenization. As the industry grapples with these issues, innovative solutions that can balance the need for transparency with the demand for privacy are becoming increasingly important.

COTI enables Confidential RWA

COTI is designed to address the privacy challenges in RWA tokenization through its innovative implementation of garbled circuits technology. This cryptographic technique enables secure multi-party computation, providing a robust solution for the privacy needs of tokenized real-world assets.

Our groundbreaking approach offers several crucial features to RWA issuers:

Encrypted on-chain data storage: Sensitive asset information remains protected, ensuring the confidentiality of high-value assets like real estate or art collections.

Selective information disclosure: Asset owners can control what data is shared and with whom, enabling regulatory compliance without compromising overall privacy. This is particularly valuable for institutional investors dealing with client confidentiality requirements.

Verifiable computations on private data: Prove properties about encrypted asset data without exposing all its details, allowing for transparent valuation and auditing processes while maintaining confidentiality.

Secure multi-party interactions: Enable private transactions and data sharing between multiple parties, facilitating confidential fractional ownership and secure trading of tokenized assets.

Utilizing the privacy-preserving power of garbled circuits, COTI can ensure the details of RWA transactions can be obscured from public view in a regulatory compliant manner. This allows for novel use cases like private sales where specific transaction details are kept confidential. While it doesn’t provide complete anonymity in the sale of tokenized RWAs, critical information such as sale price, escrow conditions, or the amount of fractional ownership purchased can be kept private.

COTI’s functionality can be extended to support on-chain, blind auctions where bidders can keep their bid details secret from other participants. On-chain observers can see who is bidding, but not how much they have bid, preserving the integrity of the auction process while maintaining necessary privacy.

COTI’s implementation of garbled circuits offers significant advantages over other privacy solutions in Web3, providing faster and cheaper computation at lower latency. This efficiency is crucial for handling the complex transactions often involved in RWA tokenization.

Furthermore, garbled circuits’ smaller storage requirements enable COTI to run on various devices, from smartphones to high-powered enterprise servers. This versatility opens up the possibility of privacy for RWA tokenization at scale, potentially revolutionizing how real-world assets are traded and managed on the blockchain.

Advanced use cases for Confidential RWA

COTI’s privacy-preserving technology opens up a wide range of possibilities for RWA tokenization, addressing key challenges and enabling innovative financial products.

Here are some of the more advanced use cases:

Private lending with on-chain credit scores: Confidential credit scoring enables RWA-based lending without compromising borrower privacy. Lenders can verify income and payment histories on-chain while keeping individual data secure.

Confidential loan applications: On-chain processing of loan applications (e.g., HELOC, solar, auto loans) creates verifiable records while maintaining data privacy, streamlining the creation of asset-backed securities.

Private RWA trading strategies: Asset managers can operate actively managed funds on-chain while keeping their strategies confidential. This opens new avenues for innovative tokenized investment products.

Private commercial paper: Issuers can maintain confidentiality of financial positions and strategies when issuing tokenized short-term debt instruments, potentially accelerating adoption in this market.

Compliant dark pools: Institutional investors can trade tokenized assets in fully on-chain dark pools. Participants undergo KYC verification but remain anonymous until reporting cycles, protecting trading strategies and positions.

These use cases demonstrate how COTI’s privacy-preserving technology can unlock the full potential of RWA tokenization, addressing key concerns around data privacy and regulatory compliance while enabling innovative financial products.

COTI — The future of privacy for RWAs

COTI’s privacy-preserving technology addresses the critical challenge hindering widespread adoption of RWA tokenization: the need for confidentiality.

By enabling selective disclosure and verifiable private transactions, COTI paves the way for institutional participation and innovation in the RWA space. From confidential high-value property sales to privacy-preserving fractional ownership, COTI’s solution maintains the benefits of blockchain while providing the discretion traditional finance demands.

As COTI’s technology integrates into the RWA ecosystem, it promises to bridge the gap between the multi-trillion dollar world of physical assets and the efficiency of blockchain. The future of asset tokenization balances transparency with privacy — COTI is making this balance possible today.

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 — August Highlights

August has flown by! We’ve had our heads down, building out COTI’s tooling for a more streamlined developer experience. Additionally, we’ve been hard at work setting the stage for ecosystem expansion, as we gear up for our upcoming testnet launch. Here’s a recap of the major news, updates, and technical advancements from the past month.

COTI Joins the DeCC Alliance

We are excited to be one of 20 projects forming the Decentralized Confidential Computing Alliance (DeCC). The Alliance aims to promote data protection and confidential computing in the blockchain space. For the first time in Ethereum’s history, practical and easy privacy solutions are available. The work done by COTI, along with other DeCC members, will set a new standard for Web3 applications. See the DeCC press release here. DeCC members include projects like Secret Network, Fhenix, and Zama, whom we will be joining on stage at DeCC Day during Token2049 in Singapore. More details coming soon.

Unlocking Privacy Features with COTI Sandbox and the Data Privacy Framework

This month we progressed the capabilities for private smart contracts on COTI, alongside the Sandbox. The Data Privacy Framework (DPF) allows developers to create private smart contracts with fine-grained access controls. This feature means that developers can program access to reveal sensitive data only to authorized parties. Meanwhile, progress is being made on the COTI Sandbox with the addition of a secure environment for testing privacy features, enabling developers to experiment with encrypted data and smart contract rules including DPF. Read more here.

This month also saw the second of our technical introductions to COTI V2 with Head of R&D Guy Mesika. The session looked at how to get started with COTI V2 including getting a network key, what the technology can offer referencing code examples in Typescript and Python and more. You can watch the session back here. Look out for the next one where you can take part and put your questions directly to our tech team!

Develop and test COTI’s privacy-preserving smart contract capabilities in the Remix IDE

We’re excited to share the upcoming release of our COTI plugin for the popular Remix IDE. Remix is widely recognized as one of the most utilized development environments in the Ethereum ecosystem offering Solidity support and a range of smart contract templates and plugins to accelerate the development lifecycle. Now, the COTI Remix plugin will bring COTI’s privacy-preserving smart contract capabilities to the vast user-base of Remix IDE, estimated to be well over 100,000 developers. Read the full story here.

COTI in the spotlight

COTI has been featured in several publications this month for its active work on the Bank of Israel’s CBDC project, including mentions from Crypto Wisser and U.Today. The crypto press also highlighted COTI’s Garbled Circuits technology, with coverage in CryptoPotato, which published Garbled Circuits 101 as well as a full interview with COTI CEO Shahaf Bar-Geffen. You can watch the interview here for a deep dive into COTI’s mission and forthcoming Layer 2 solution. Additional coverage appeared in Interesting Engineering, which mentioned COTI in relation to the challenges of AI and data privacy, introducing COTI’s programmable and self-regulating privacy as a novel solution.

In case you missed it, we also launched a deposit campaign on KuCoin this month. KuCoin is one of the largest global cryptocurrency exchanges and it currently has $30,000 worth of $COTI up for grabs. The campaign runs until September 14, so there’s still time to get involved. Read more here.

To round off the month, our CEO Shahaf Bar-Geffen represented COTI at the WebX Conference in Tokyo last week, spreading the word about Garbled Circuits and blockchain privacy further afield. Finally, in case you missed it, here is his latest community update — a bi-weekly video address that you can check out on Youtube.

COTI Creators Program Reveals First Creator Cohort

Collaboration is more important than ever in decentralized communities. By bringing together diverse talents from different fields, the Creator Program aims to create a synergy that can propel COTI forwards. This month we were thrilled to reveal four talented individuals and one media company who will help to build momentum behind the COTI brand;

Stefan (Unity Node)

Crypto Merlin @Crypto_Merlinn

Rug Radio @RugRadio

Ship @Coti_Ship

Guy

Their contributions span copywriting, graphic design, animation and more. Read the full story here. In addition we have made progress on the Builders Program that aims to nurture talented developers within the community. We have created a pipeline for approvals and moved several applicants to the final stages of the grant approvals process. More on that soon.

DJED’s New Version / 1.2 Launch!

Djed 1.2 went live, featuring major upgrades that COTI and Input | Output had been collaborating on for several months. The update benefits users with cost-efficiency improvements by providing a more flexible fee structure. The core of the update included;

Lowered minimums for all mint & burn actions

Switching from a fixed to percentage-based operator fee

Moving to a more dynamic base fee model based on the protocol ratio

Migration to Plutus V2, which will bring enhanced interoperability, oracle slippage detection and more

You can read more about the upgrade here or experience the updates directly here djed.xyz

What’s Next?

September is going to be big! Our conference calendar is packed and the launch of our Testnet is just around the corner. Development is going strong on the BoI CBDC project and we’ll soon be releasing details of our design along with a lineup of exciting new partnerships. Join us at our next COTI Connect Spaces to get the inside scoop, and stay locked to our community channels to get all the latest COTI updates as they happen.

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