Key highlights:
COTI receives Bank of Israel commendation for Digital Shekel Challenge
COTI’s proposal uses smart contracts for secure, low-cost CBDC transactions.
COTI’s marketplace model shows CBDCs’ potential beyond finance, like in ticketing.
The Bank of Israel recently concluded its Digital Shekel Challenge, where finalists presented innovative CBDC (Central Bank Digital Currency) solutions at the Tel Aviv Stock Exchange. COTI, a Layer 2 privacy blockchain, was among the standout participants. They introduced a groundbreaking CBDC-powered decentralized marketplace for Real-World Assets (RWAs).ž
Here we go! CBDC @COTInetwork $COTI#CBDC pic.twitter.com/xB8hpS6BD1
— Shahaf Bar-Geffen (@shahafbg) October 31, 2024
COTI was the only blockchain-focused project to make it to the final rounds of the competition, presenting alongside fintech giants like PayPal and Fireblocks. While PayPal won an award for its salary management system, COTI’s proposal showcased a decentralized event ticket marketplace aimed at bridging traditional banking and Web3 ecosystems. In this setup, counterparties could transact in their local currency, using Israel’s Digital Shekel as the intermediary, minimizing the need for intermediaries, reducing fraud, and lowering fees.
Inspired by BIS’s Icebreaker cross-border CBDC payment system, COTI’s concept could apply beyond concert tickets to global asset exchanges. A smart contract-based marketplace, it would allow secure, low-cost exchanges while safeguarding user privacy.
What is COTI?
COTI, or "Currency of the Internet," is a privacy-focused blockchain solution known for its innovative cryptographic protocol, Garbled Circuits. It secures confidential transactions while minimizing processing costs. COTI serves as a confidentiality layer supporting various applications, from decentralized finance (DeFi) to AI-driven services. Its lightweight structure allows it to operate on mobile devices, setting it apart as one of the fastest and most accessible privacy layers in blockchain technology. This technology is ideal for CBDCs, enabling confidential transactions while balancing transparency and privacy.
Wrapping up
The involvement of COTI in the Bank of Israel’s Digital Shekel Challenge underscores the growing relevance of CBDCs and privacy-driven blockchain solutions. As more central banks explore digital currency initiatives, privacy and security are pivotal. COTI’s proposal highlights the viability of using CBDCs in decentralized marketplaces and presents a scalable model that combines privacy with regulatory compliance. This development is crucial as it provides a potential framework for securely integrating digital assets in traditional economies.
